scholarly journals MARKET REACTIONS TO DOMESTIC MARKET OBLIGATION (DMO) COAL PRICE POLICY CHANGES: EVIDENCE FROM INDONESIA

2021 ◽  
Vol 19 (2) ◽  
pp. 376-383
Author(s):  
Titis Dyah Safitri ◽  
◽  
Satia Nur Maharani ◽  
Dwi Narullia ◽  
◽  
...  
Keyword(s):  
Market Efficiency ◽  
Capital Market ◽  
Market Reaction ◽  
Investment Decision ◽  
Price Policy ◽  
Domestic Market ◽  
Market Reactions ◽  
Coal Price ◽  
Investment Decision Making ◽  
The Government

The announcement of the Domestic Market Obligation (DMO) coal price policy becomes the signal for investment decision making. The event was an announcement related to the government that can affect shares in the capital market. The form of capital market efficiency knows how equal the information that investors can absorb and the signal that indicates investors’ response, whether it is positive or negative. This research is a descriptive event study that uses twenty-one samples of coal mining subsector companies to determine capital market reactions to the Domestic Market Obligation (DMO) coal price policy announcement. During the observation period, there was a significant market reaction with a marked abnormal negative return. There is a leak of information before implementing policy, which makes the form of capital market efficiency is semi-strong form. Also, this is caused by the investor, which gets the difference of information degree based on the market efficiency hypothesis. The next research can use different event windows to increase the knowledge about the effect of the announcement of the Domestic Market Obligation (DMO) coal price policy towards market reaction.

Organized Labor and Inventory Stockpiling

2021 ◽  
Author(s):  
Sophia J.W. Hamm ◽  
Boo Chun Jung ◽  
Woo-Jong Lee ◽  
Daniel G. Yang
Keyword(s):  
Capital Market ◽  
Bargaining Power ◽  
Investment Decision ◽  
Organized Labor ◽  
Costs And Benefits ◽  
Investment Decision Making ◽  
Major Stakeholder ◽  
Information Spillover ◽  
Labor Negotiations ◽  
Market Pressure

We document that managers stockpile excess inventory to mitigate the operational risk posed by labor unions and to maintain bargaining power in labor negotiations. Inventory levels are higher for union firms and are incrementally higher preceding the renegotiation of collective bargaining agreements with unions. Inventory stockpiling at union firms is more salient when capital market pressure for transparency or information spillover from peers constrains managers from using disclosure strategies. We further show that managers weigh the costs and benefits of inventory stockpiling, as holding excess inventory due to the presence of a union is negatively associated with future profitability but provides the benefits of avoiding a stockout and mitigating negative outcomes from a strike. Our findings highlight the importance of a major stakeholder, i.e., labor, in managers' investment decision-making.

Analyzing Manufacturer’s R&D Equilibrium in Defense Procurement

2011 ◽  
Vol 474-476 ◽  
pp. 1435-1439
Author(s):  
Sheng Li Chen ◽  
Xiao Dong Liu
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Investment Decision ◽  
Investment Decisions ◽  
Defense Procurement ◽  
Contest Theory ◽  
Investment Decision Making ◽  
Admission Criterion ◽  
The Government ◽  
D Investment

We formulate the model of R&D investment scale adjustment of defense procurement by applying game theory and contest theory and study the equilibrium of manufacturers’ R&D investment decision-making in defense procurement. We explore mainly the influence of valuation of monopolistic contract and differences among manufacturers’ abilities on investment. The conclusion shows that manufacturers’ investment equilibrium of R&D projects is what the government expects under certain conditions, however, manufacturers’ abilities effect on the investment equilibrium and makes it deviate from the government expectation. Therefore, the government must keep practically manufacturers’ anticipation about the monopolistic contact being consistent with government’s and set basic admission criterion to enable manufactures’ ability well-matched to induce the manufacturers’ investment decisions to the investment equilibrium that it desired.

scholarly journals A földrajzi diverzifikáció szerepe a globális tőkepiacokon

2020 ◽  
Vol 144 (3) ◽  
pp. 258-273
Keyword(s):  
Decision Making ◽  
Real Time ◽  
Market News ◽  
Capital Markets ◽  
Capital Market ◽  
Statistical Data ◽  
Investment Decision ◽  
Market Prices ◽  
Investment Decision Making ◽  
Geographical Diversification

This study illustrates the effectiveness of geographical diversification using capital market data. The paper uses historical capital market prices to show how the neglect of geographical diversification results in a deterioration in investment decision-making. In addition, the correlations between the capital markets of the former socialist countries are presented, which in many cases can be explained by real economic processes and geopolitical events. Quantitative, real-time financial and statistical data provided by capital markets can also be used to justify the dependence systems between countries and groups of countries, but the method can also be used in many cases to show the economic and geopolitical changes between countries. The study shows how concentrated the world’s stock markets are, which means that smaller capital markets cannot separate themselves from economic events, money and capital market news, or events of the largest ones.

scholarly journals FAKTOR–FAKTOR YANG MEMPENGARUHI PENGAMBILAN KEPUTUSAN INVESTASI DI PASAR MODAL INDONESIA

2018 ◽  
Author(s):  
Lilis Susilawaty ◽  
Edi Purwanto ◽  
Stela Febrina
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Risk Aversion ◽  
Capital Market ◽  
Investment Decision ◽  
Descriptive Analysis ◽  
Primary Data ◽  
Firm Level ◽  
Quantitative Descriptive Analysis ◽  
Investment Decision Making

<h5><em>The purpose of this research</em><em> to determine what factors affect the return on investment in the Indonesian capital market. By replicating the research conducted by Quershi et al (2012) found 4 (four) factors that influence investment decision making, namely heuristics, risk aversion, financial tools and firm levels of corporate governance. Data analysis technique is quantitative descriptive analysis using primary data with information that is in accordance with respondents who are investors who have invested in the Indonesian capital market. Hypothesis testing is done using multiple analysis by first testing the validity, reliability test, and classical assumption test.</em></h5><h5><em>With a total of 185 respondents, the results of the </em><em>research</em><em> show that heuristics, risk aversion, financial tools and corporate levels of corporate governance together have a significant influence on investment decision making. However, partially, heuristics and risk aversion have no effect on investment decision making, while financial tools and corporate governance levels are significant to investment decision making.</em><em></em></h5><h5><em> </em></h5><p><strong><em>Keywords</em></strong><strong><em>: </em></strong><em>investment decision making, heuristic, risk aversion, financial tools, firm level corporate governance</em></p>

scholarly journals Empirical evidence of market reactions based on signaling theory in Indonesia stock exchange

2019 ◽  
Vol 16 (2) ◽  
pp. 66-77
Author(s):  
Zarah Puspitaningtyas
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Investment Decision ◽  
Abnormal Returns ◽  
Signaling Theory ◽  
Decision Making Process ◽  
Market Reactions ◽  
Positive Direction ◽  
Investment Decision Making ◽  
Dividend Announcements

Signaling theory assumes that it is necessary to signal investors to how they perceive company’s prospects. One of them is dividend announcements. The announcement of dividends is predicted to be a signal for investors in the investment decision making process. This study aims to determine and analyze the effect of dividend announcements, both increases and decreases in dividends, on stock returns. This study is intended to find empirical evidence about market reactions based on signaling theory in Indonesia Stock Exchange on the period 2017. The analysis of this study uses the event study method and hypothesis testing carried out using different test paired sample t-test. The results of this study prove that the market reacts to the announcement of dividends. The market reaction is indicated by the value of abnormal returns, namely abnormal returns in the positive direction when the announcement of dividend increased and abnormal returns in the negative direction when the announcement of dividend decreased. The value of abnormal returns in a positive direction reflects the company’s performance in good condition, and vice versa. This result indicates that dividend announcements are a signal and contain information relevant to investors in the investment decision making process.

scholarly journals PSYCHOLOGICAL FACTORS AND INVESTMENT DECISIONS IN THE NIGERIA CAPITAL MARKET

2021 ◽  
Vol 6 (1) ◽  
pp. 33-41
Author(s):  
Esther Ikavbo Evbayiro-Osagie ◽  
Michael Ify Chijuka
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Capital Market ◽  
Psychological Factors ◽  
Investment Decision ◽  
Investment Decisions ◽  
Factors Affecting ◽  
Availability Bias ◽  
Investment Decision Making ◽  
Behavioral Influences

This study examines Behavioral Factors and Investment Decision Making in the Nigerian Stock Exchange (NSE). Thus, the research question is what are the psychological factors affecting investment decisions in the Nigerian capital market. A structured questionnaire was used in collecting data and it was able to collect data from 75 investors with the application of a convenient sampling method. Using overconfidence bias, availability bias, conservatism, and herding effect to define the most important behavioral element affecting investment decision making by investors in the Nigerian. Multiple regression analysis was used as the key methodological method for evaluating the research hypothesis, whereas the internal consistency of the questionnaire calculated from Cronbach's alpha on all variables showed values greater than 0.7 with a sufficient level of reliability. The primary beneficiary group would be the buyers on the stock market who would be educated enough about the effect of their own behavioral influences on their stock market decision making. The knowledge would be useful in making optimal investment decisions and avoiding unfavorable decisions to increase their resources. In turn, it will be helpful to policymakers and stock market regulators to help them understand the position of behavioral influences inherited in consumer decision-making and that may be associated with the need for stock market brokers to update their customer's trading practices to a higher level. The findings of this study suggest that overconfidence, availability bias, and herding impact demonstrated a positive significant relationship with NSE investment decision-making except conservatism which showed a negative relationship with investment decision-making but at 0.01 levels statistically significant. On the basis of the results, it can be generalized that the most prevalent factors affecting investor investment decision taking in NSE are overconfidence, availability bias, and herding influence.

scholarly journals Financial Behavior of Working Women in Investment Decision-Making

2019 ◽  
Vol 11 (2(I)) ◽  
pp. 10-20 ◽  
Author(s):  
Nadia Asandimitra ◽  
Tony Seno Aji ◽  
Achmad Kautsar
Keyword(s):  
Financial Literacy ◽  
Financial Planning ◽  
Investment Decision ◽  
Working Women ◽  
Financial Behavior ◽  
Investment Plan ◽  
Government Sector ◽  
Investment Decision Making ◽  
The Government ◽  
Descriptive Method

The purpose of this study is to measure the level of financial literacy of working women, to describe assets allocation, as well as the time and profit in investment. This research paper is a qualitative study using the descriptive method. Noting the purpose, it is suitable if the qualitative approach was implemented. The respondents are working women with most of them have been married, 16-22 years old on average, have a bachelor degree, and work in the government sector with the majority of the income is more than 4.000.000 rupiahs. Those respondents’ characteristics will influence their choice in doing investment because it is associated with the tolerance of risks. The first form of behavior and preference of investment done by working women is that majority of them have thought about investment plan and most of the respondents think that everyone can get profitable investment if they do financial planning and saving/investment. The second form of behavior is that the majority of respondents are more interested in property investment. The third form of behavior motivating working women in doing investment is themselves, like retirement planning and family security reason. Based on the study, it shows that working women have high financial literacy which is indicated by their discipline in doing the investment of their excess money, thus they have control over their finances and believe to get investment profit they should do financial planning.

scholarly journals Contributors’ Involvement in Pension Fund Investments Decision Making and Retirees Standard of Living in University of Lagos, Nigeria

2019 ◽  
Vol 15 (4) ◽  
pp. 69
Author(s):  
Hope Nwawolo ◽  
Ngozi Nwogwugwu
Keyword(s):  
Decision Making ◽  
Pension Fund ◽  
Pension System ◽  
Academic Staff ◽  
Investment Decision ◽  
Standard Of Living ◽  
Pension Scheme ◽  
Validated Questionnaire ◽  
Investment Decision Making ◽  
The Government

Management of the pension scheme in Nigeria had been inundated with several and diverse challenges ranging from corruption and mismanagement of funds for some decades. As a result retirees were not able to access their pension benefits leading to some dying without access to their fund. The government then introduced the contributory pension system in a pension Act of 2004 which was amended in 2014, as a measure to minimize the sufferings of retirees as well as allay the fears of workers. However, the problems of pension are yet to abate and retirees are still groaning under unstable welfare. This study examined contributors’ involvement in pension funds investment decision making and retirees’ standard of living. The study adopted convergent parallel research design with population being non-academic staff of University of Lagos. The population of the study was 5098 and sample size was set at 100 respondents using Taro Yamane’s (1967) formula. Response rate of the validated questionnaire was 91%. Descriptive and inferential statistics (linear regression) were employed in analysis of data. The study found that contributors’ decision making on pension fund investment exerted a positive significant effect on retirees standard of living (β=.46, R2=0.49, t=10.57, p

scholarly journals Investors’ Structure and Investment Decision Making Factors: Evidence from Capital Market in Bangladesh

2020 ◽  
Vol 9 (1) ◽  
pp. 67
Author(s):  
Md. Hafizur Rahman Khan ◽  
Mohammad Saiful Islam
Keyword(s):  
Decision Making ◽  
Factor Analysis ◽  
Interest Rate ◽  
Capital Market ◽  
Investment Decision ◽  
Descriptive Statistics ◽  
Policy Makers ◽  
Investment Decision Making ◽  
Decision Making Factors ◽  
Structured Questionnaire

The purpose of the paper is to identify the investors’ structure and vital investment decision making factors in the context of capital market in Bangladesh. Total 104 investors have been surveyed in the study with close ended and structured questionnaire. Descriptive statistics and factor analysis have been conducted to analyze the collected data. The results of the study reveal that policy adoption of government together with fundamental analysis and deposit interest rate as alternative of return from share market for investors are vital investment decision making factors of investors of capital market in Bangladesh. The paper is significant for the investors for proper investment decision making and policy makers to work with development of capital market in Bangladesh.

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