Fund Ownership Research Articles

Effect of Asset Quality, Rentability, and Liquidity on the Book Value of Bank Companies Listed on the IDX in 2015-2020

<span lang="EN-US">The purpose of this study is to measure how strong the impact of asset quality, profitability, and liquidity is on a company's book value. This research study utilized secondary data sourced from the Bank's annual reports for 6 years (2015-2020) as a sample of 23 banks equivalent to 138 data which were then analyzed using statistical tests. The results of the data test show that NPL, ROE, ROA, OER, and LDR together have a positive significant impact on the Book Value of Shares, individually NPL has a significant positive impact, ROE has a significant positive impact, ROA has a positive and significant impact, OER has no impact and liquidity has a significant positive impact on the Book Value of Shares. Asset quality, profitability and liquidity scores are indicators of financial performance that can be used by fund owners to determine the condition of a bank's financial health when investing in banking stocks based on the right decisions.</span>

Does Exchange-traded Fund Ownership Affect a Firm’s Expected Crash Risk?

We examine the effect of equity ownership by exchange-traded funds (ETFs) on the expected (ex ante) crash risk of the underlying securities. We observe a positive relationship between ETF ownership and the firm’s expected crash risk. Our findings suggest that ETFs increase information opacity, leading managers to withhold negative news, which in turn amplifies the anticipated crash risk. We demonstrate a positive causal relationship between ETFs and expected crash risk by using the Russell 1000/2000 index reconstitution as an instrument for ETF ownership and ETF initiation as staggered exogenous shocks on ETF ownership. Moreover, this association becomes more noticeable when ETF ownership is broader, the ETF is larger, and the company’s information environment is more opaque.

Rulings on Excess Wealth of Unknown Sources According to Islamic Law

Islamic law places a paramount emphasis on safeguarding wealth and preserving it from loss, and it deems its preservation as one of the objectives of Sharia. Islamic law views wealth in a general sense and regards unexplained surplus wealth from a humanitarian perspective. The aim is to elucidate the comprehensiveness, adaptability, and relevance of Islamic Sharia, demonstrating its capability to address contemporary needs by providing rulings that uphold benefits, prevent harm, and contribute to enlightening people about the principles of wealth preservation. Contemporary and emerging issues are numerous and require clarification of their legal rulings, particularly new forms such as the treatment of abandoned funds in customs, the status of deposits in commercial banks, the handling of profits in banks with unknown owners, funds in the possession of money changers, and those held in exchange centers. These issues fall under the purview of Islamic jurisprudence, akin to the concept of "lost property," due to their significant importance in jurisprudential deliberations and contemporary practical applications. The resultant conclusion is that surplus funds of unknown origin are treated akin to lost property. Contemporary and emerging matters necessitate a legal ruling, and if the owner of such funds cannot be found, they are generally allocated to charitable causes, which are broader than the concept of Muslim interests. These causes encompass various charitable endeavors, such as aiding the poor and constructing mosques, as they are considered avenues of charity.

LEGAL PROTECTION FOR CREDITORS AGAINST DEBTORS IN DEFAULT PEER TO PEER LENDING AGREEMENT

The purpose of this research is to determine the validity of the Civil Code perspective on peer to peer lending agreements and to determine the factors that hinder creditor returns and the role of the OJK in protecting creditors. This research uses normative juridical methods, namely obtained from library materials and related literature such as books, journals and so on. Peer to peer lending agreements made using an electronic system are basically valid because they fulfill the 4 requirements in Article 1320 of the Civil Code. There are several factors that hinder returns and creditors, namely, individual characteristics, business, credit, internal and external factors. OJK's role in protecting lenders in peer to peer lending agreements, OJK provides sanctions to organizers for losses from fund owners due to errors and negligence in cases where there is a lack of transparency, not acting fairly, not being reliable, not maintaining data confidentiality and security.

Does ownership concentration affect corporate bond volatility? Evidence from bond mutual funds

This paper examines the link between ownership concentration and corporate bond volatility. We show that more concentrated mutual fund ownership is associated with higher volatility of corporate bonds. This relation is stronger among more illiquid bonds, during periods of heightened bond market illiquidity, and among bonds held by corporate bond funds that invest in more illiquid bonds and experience higher or more correlated liquidity shocks. Using a sample of mutual fund mergers, we further show that increases in bond volatility are unlikely to be driven entirely by the endogenous ownership structure of corporate bonds. Our findings suggest that the concentrated ownership by corporate bond mutual funds provides another channel, apart from illiquidity, to help explain the excess volatility in corporate bonds.

Broadband Internet and the Stock Market Investments of Individual Investors

ABSTRACTWe study the effects of broadband internet use on the investment decisions of individual investors. A public program in Norway provides plausibly exogenous variation in internet use. Our instrumental variables estimates show that internet use causes a substantial increase in stock market participation, driven primarily by increased fund ownership. Existing investors tilt their portfolios toward funds, thereby obtaining more diversified portfolios and higher Sharpe ratios, and do not increase their trading activity in stocks. Overall, access to high‐speed internet spurs a “democratization of finance,” with individuals making investment decisions that are more in line with the advice from portfolio theory.

Benchmarking asset pricing models in emerging markets: evidence from Borsa Istanbul

PurposeInvestors who can transfer their savings to investments in a well-regulated market benefit not only themselves but also economic development. Hence, it is crucial for fund owners to evaluate their stock market investment decisions. The goal of the study is to understand which model determines the asset returns most efficiently. In this regard, the validity of single and multi-index asset pricing models (capital asset pricing model-CAPM and Fama–French models) has been examined in the Turkish Stock Exchange for 2009–2020, with the quantile regression (QR) approach.Design/methodology/approachOn 18 portfolios comprised of quoted stocks in the Istanbul Stock Exchange 100 (ISE-100/BIST-100), we test the CAPM, the Fama and French three factor model (FF3) and the Fama and French five factor model (FF5). Empirical analyses have been carried out via QR approach regressing the portfolios' average weekly excess returns on risk premium/market factor (Rm-Rf), firm size, book value/market value (B/M), profitability and investments factors. QR estimation has been employed since QR is more effective and provides a better definition of the distribution’s tails.FindingsOur empirical findings have revealed that the average excess weekly returns can be explained more strongly via CAPM. Moreover, Fama and French models are expected to give more reliable result with more data, whereas the market premium would give robust results for the Turkish Capital Market.Practical implicationsIndividuals investing in financial assets must find the price model that best fits the market. The return can be approximated in the most appropriate manner using the right variables.Originality/valueThe study differs from other research by comparing the asset pricing models via examining the assets' weekly returns with QR in the Istanbul Stock Exchange 100 (ISE-100).

Analisis Pendistribusian Laba Dalam Akuntansi Syariah Untuk Mencapai Prinsip Keadilan

The purpose of this research is to determine the description of profit sharing in sharia accounting to achieve the principles of justice. This research uses a qualitative descriptive approach with a post-positivist paradigm. The informants in this research used data collection techniques using interviews, observation and documentation. Research shows that the profits generated by companies are not just the result of the work of a group of people. However, many stakeholders are involved, including fund owners, employees and the environment. With an impartial perspective, profits can benefit all parties involved, not just a handful of executives.

The Problems of Qualification of Theft Non-Cash Funds

Introduction: the relevance of the research topic is due to the need to consider the problems of qualification of theft non-cash funds. The paper explores the question of how to qualify the theft of non-cash funds, what is the difference between their object of theft and the object of theft in the traditional sense. The purpose of the work is to substantiate the most correct and accurate qualification of theft of non-cash funds, to distinguish the fraud components from each other and from other related components. Methods: the scientific analysis of theft components is carried out using ontological and axiological approaches, the method of system analysis, as well as the comparative law method. As a result of the research, the author concludes that the inclusion of Article 159.3 in Chapter 21 of the Criminal Code of the Russian Federation and its new version are justified and contribute to the protection of public relations in the field of ownership of non-cash funds and property rights.

Еволюція ролі та функцій комерційних банків в економічній системі: теоретико-історичний підхід

The aim of the article is to deepen and develop the scientific foundations of the evolution of the functions and role of commercial banks in the economic system through the transformation of the essence of banking activities and the emergence of new financial instruments in historical retrospective. The article summarizes scientific approaches to describing the evolution of the functions of commercial banks in historical retrospective; the essence of the transformation of banking activity due to growing risks and competition in financial markets is disclosed; an extended list of functions of commercial banks in today’s conditions is provided; the dynamics of the number of commercial banks in the leading countries of the world and countries with emerging markets is analyzed; tendencies and prospects for the development of banking and functions of commercial banks in the context of globalization of the economy and the introduction of novel digital financial instruments are substantiated. A functional analysis of the role and importance of commercial banks in the economic system for the period from the 16th century AD to the present is carried out. It is emphasized that in modern conditions banks are turning into institutions for servicing speculative flows. At the same time, the main function of commercial banks – lending to the real sector of the economy – begins to fade into the background due to low profitability. The essence of banking activity and features of new functions of banks over the past 25 years are disclosed. It is emphasized that computerization and financial innovations have significantly changed the ways of functioning of commercial banks. These processes made it possible to introduce new forms of service and types of banking products, improve bank management, collect and process large amounts of statistical information, and expand the scope of activities of large banks beyond national borders. It is proved that the timeliness and continuity of saturation of the economy with monetary resources is influenced not only by the number of commercial banks, but also by the mechanism for ensuring solvency and effective redistribution of cash flows between owners of funds and recipients of credit resources – both individual banks and the banking system as a whole. Proposals on the role and importance of commercial banks for the economy, based on their ability to increase the efficiency of the functioning of the economic system, have been substantiated. The essence of the transformation function of banks is that, transforming the space, size, terms, risks, illiquid assets into liquid liabilities, liquidity, purchasing power, information, banks play an important role in the State, as it allows to reduce risks in the economic system and social costs. Prospect for further research in this direction is to determine the impact of transformation of the role and functions of commercial banks on the macro-financial stability of the State and global financial markets.

Ownership of Mutual Funds and Shareholder Sentiment, 2023

Ownership of Mutual Funds and Shareholder Sentiment, 2023

Does a Stewardship Code Improve the Firm Valuation and ESG Factors in India?

This is the first study from an emerging market to examine the effect of stewardship codes on the relationship between institutional investors' (IIs) ownership and firm valuation, along with environmental, social, and governance (ESG) factors3.. Using all S&P BSE listed non-financial firms data from financial years 2014-2015 to 2022-23, the results reveal a negative relationship between future firm value and II's ownership. Notably, stewardship code adoption does not affect Independent institutional investors' (IIIs)/ mutual fund (MF) ownership relationships with future firm valuation; however, Other institutional investors' (OIIs) negative relationship gets more profound. Difference in Difference (DID) analysis results confirm that the stewardship code positively affects IIs' and firm valuation relationship concerning firms with low promoter ownership than firms with high (more than 50%) ownership. However, the effect of the stewardship code changes throughout the different levels of Tobin Q. We find that an increasing IIs ownership enhances the likelihood of a positive change in ESG and its factors in which the environmental (E) factor contributes substantially . Further, a positive change in the governance score is associated with other institutional investors' (OIIs) ownership. Adopting the stewardship code strengthens the association between MF ownership and ESG factors.

Hedge Fund Ownership and Corporate Financial Misconduct

Hedge Fund Ownership and Corporate Financial Misconduct

The Role of Market Reaction Analysis in View of Company Size, Average Revenue, and Profitability

This research aims to determine the effect of company size and income smoothing on stock market reactions. The capital market is a place where investors as fund owners meet with issuers as companies seeking funds. In making a decision to invest, an investor needs a financial report to find out information and to use it as consideration if the investor wants to invest. The test results for the income smoothing variable show that the regression coefficient is positive at 2.805. The t statistical test for the Income Smoothing variable obtained a calculated t value of 2.805 which was greater than the t table value of 1.668. The significance value obtained was 0.007, which was smaller than the predetermined significance value, namely 0.05. This shows that income smoothing has an effect on the market reaction of the company. The test results above show that ROA with earnings response has a positive regression direction, so that an increase in ROA causes an increase in Company Value. The results of the t test show that the Roa variable has a t value > t table (3.804> 1.668) and a significance value < 0.05, namely the significance level obtained (0.000 < 0.05).

Institutional investors and mispricing of unionized firms

AbstractWe examine investment by different types of institutional investors in firms with strong labor unions. We find that hedge funds own a lower percentage of shares in these firms than in other firms. In contrast, passive institutional investors and institutional investors as a group own a higher percentage. Our tests suggest that the relation between unionization and hedge fund ownership is causal: When union power changes in a firm, hedge fund ownership changes in the opposite direction. Instead, passive investor holdings in unionized firms seem to be driven by other firm characteristics.

Tinjauan Yuridis Pengawasan Perbankan Dan Perlindungan Nasabah Oleh Otoritas Jasa Keuangan (OJK)

The function of a bank is as a financial intermediary institution, namely as a bridge between fund owners and parties who need funds, both as depositors and borrowers. Bank-customer relationships often involve banking practices that have a negative impact on customers, but legal protection is often less than optimal. Because if you look at the relationship between banks and customers, banks have enormous control over banking transactions, and in some cases they control banking transactions. So that sometimes it is detrimental to customers. Based on the above facts, Law Number 21 of 2011 concerning the Financial Services Authority (UU OJK) has been promulgated. As a bank supervisory institution and as an institution that protects customer interests.

Bottleneck and Rework Analysis of the Budget Approval at University with Process Mining

Process mining is a new science that focuses on the transparency of an existing process. Especially in a world full of digitalization, of course, many companies, education, health are immediately competing in presenting the most efficient and effective processes to do. in this study the authors used Request for Payment data owned by a university. These requests will later be checked by the travel administration, this budget approval can be done by supervisors, directors, or fund owners. the author uses Celonis tools and algorithms in Celonis to identify bottlenecks and rework in the process. We also attempted to analyze where new insights could be drawn from the resulting process model. The result of this research is to pay special attention to several activities, as well as to provide explanations of the criteria related to the application to be submitted.

INDONESIA STOCK EXCHANGE: THEORETICAL AND PHILOSOPHICAL ANALYSIS OF MUDHARABAH AND MUSYARAKAH CONTRACTS

This article is a theoretical and philosophical analysis of the implementation of the mudharabah contract and musyarakah contract on the Indonesia Stock Exchange. This study aims to reveal the theory and business philosophy underlying the two contracts and the significance of this study on the development of science in the Islamic capital market. The research method used involves reviewing literature from various relevant sources, including academic literature, books, journals, and regulations related to the Islamic capital market. In the theoretical analysis, the two contracts are studied as a form of partnership and fairness in doing business, with a mudharabah contract as a collaborative relationship between fund owners and fund managers, and a musharakah contract as a form of partnership based on capital contributions between business partners. In addition, this study also highlights the philosophical aspects of the implementation of the two contracts, with the ethics of responsibility and mandate being important moral values. The results showed that the mudharabah contract and musharakah contract reflect the spirit of equality and justice in the sharing of business results and risks, as well as the philosophy of sharing and mutual benefit in doing business. Overall, this analysis confirms that these two contracts are important foundations in shaping business ethics and philosophy in the Islamic capital market, with ethical principles such as responsibility, justice, and equality as strong moral values in directing business people to carry out economic activities with integrity and awareness of social responsibility. This research makes an important contribution to the development of science in the Islamic capital market and can be a foundation for strengthening ethical and fair business principles in the future.Keywords: mudharabah, musharakah, Islamic capital market, theoretical analysis, philosophical analysis.

Influence of ESG Performance on Fund's Propensity to Hold Shares -Empirical Evidence from China's A-share Listed Enterprises

With the prevalence of the ESG investment concept in China, the scale of ESG investment continues to grow. Taking A-share listed firms as the study sample, this research study empirically investigates the influence and mechanism of corporate ESG performance on the tendency of fund shareholding. The study findings indicate that corporations with better ESG performances are more inclined to attract funds to hold shares. Further, the impact mechanism analysis shows that ESG affects fund ownership mainly through two paths: reducing the risk of stock price collapse and improving the financial performance of enterprises. Further research finds that ESG performance exerts a stronger impact on increasing fund ownership in non-SOE firms than in state-owned firms. Also, firms with sound ESG performance are more inclined to pay cash dividends to return to shareholders. The extended study finds that the effect of ESG on fund shareholding behavior is mainly due to the enhancing effect of three dimensions: management practices, environmental dimension, and social dimension. The conclusion remains unchanged after passing tests such as endogeneity. This research extends a theoretical reference for comprehending the role of ESG in the capital market.

REVEALING THE CAPITAL STRUCTURE FACTOR IS DOMINATED BY DEBT TO LQ45 COMPANIES ON THE INDONESIA STOCK EXCHANGE

Capital structure has an important role that must be determined to improve the welfare of the owner or the value of the company. Many studies have been done before about capital structure. This study aims to analyze the effect of Chief Executive Officer (CEO) ability, return on investment, return on equity and profit margin on capital structure. This study includes a database outside of accounting data, namely CEO Ability. This is important to study to determine the ability of the CEO in providing internal sources of funds in the capital structure of LQ45 companies on the Jakarta Stock Exchange which are more dominated by debt. The method used is a mixed method between quantitative methods and qualitative methods. The quantitative method uses multiple linear regression analysis. While qualitative methods are used to analyze the influence based on the results of interviews. The object of research was conducted on 45 companies included in the LQ45 stock list on the Indonesia Stock Exchange with a sample of 31 companies. The reasons for selecting 31 samples: a) the company has been listed on the IDX during the 2017-2021 research period, b) has financial statements with non-negative retained earnings and equity. The results showed that CEO ability, profit margin, return on investment as a factor causing capital structure is dominated by debt, while return on equity has no effect on capital structure. The implication of this research is that CEOs who are less able to increase profits to meet the availability of internal funds, the company must meet funding needs sourced from debt through good net working with fund owners.