scholarly journals Investor Behavior In Islamic Capital Markets: Study On Muslim Students

2021 ◽  
Vol 18 (3) ◽  
pp. 45-60
Author(s):  
Irton Irton ◽  
Salihah Khairawati ◽  
Mu’tashim Billah Murtadlo
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Investment Decisions ◽  
Investor Behavior ◽  
Primary Data ◽  
Risk Averse ◽  
Muslim Student ◽  
Risk Taker ◽  
Risk Seeker

ABSTRACTThe purpose of this research is to know the behavior of investors towards Islamic capital market. The research was conducted on several Muslim student respondents from several universities in Yogyakarta who invested in sharia capital markets. The type of data in this study is primary data obtained through in-depth interviews. The results showed that there are two investor characters among students namely risk seeker or risk taker and risk-averse. Respondents realized that investing in the capital market has potential benefits as well as potential risks. For investors, risk seeker has high confidence and optimism when making investment decisions, while risk-averse tends to be cautious and a lot of consideration when making investment decisions. In general, sharia capital market investors who are the majority of students have a good belief in the wisdom of stocks traded in sharia capital markets. They believe in the fatwa of scholars, the role of the DSN, and the role of capital market supervisory bodies. They are mostly also looking for information about sharia capital market sharia through books, capital market socialization, IDX web. In terms of transaction mechanisms in the sharia capital market only a small part still doubts its validity due to issue factors, lack of understanding of islamic capital market the correctness factor of the company's financial performance, and the ups and downs of the share price.Keywords: investor behavior, investment decisions, sharia capital market ABSTRAK Tujuan penelitian ini adalah untuk mengetahui perilaku investor terhadap pasar modal syariah. Penelitian dilakukan terhadap sejumlah responden mahasiswa muslim dari beberapa perguruan tinggi di Yogyakarta yang melakukan investasi di pasar modal syariah. Jenis data dalam penelitian ini adalah data primer yang diperoleh melalui wawancara Hasil penelitian menunjukkan bahwa terdapat dua karakter investor di kalangan mahasiswa yakni risk seeker atau risk taker dan risk averse. Responden menyadari bahwa investasi di pasar modal memiliki potensi untung dan juga potensi resiko. Bagi investor risk seeker memiliki rasa percaya diri yang tinggi dan optimis ketika mengambil keputusan investasi, sedangkan risk averse cenderung berhati-hati dan banyak pertimbangan ketika mengambil keputusan investasi. Secara umum investor pasar modal syariah yang merupakan mahasiswa mayoritas memiliki keyakinan yang baik mengenai kesyariahan saham-saham yang diperdagangkan di pasar modal syariah. Mereka percaya terhadap fatwa ulama, peranan DSN dan peranan badan pengawas pasar modal. Mereka sebagian besar juga mencari informasi tentang kesyariahan pasar modal syariah melalui buku, sosialisasi pasar modal, web IDX. Pada aspek mekanisme transaski pada pasar modal syariah hanya sebagian kecil yang masih meragukan kesyariahannya, karena faktor isu dan kurangnya pemahaman, faktor adanya unsur ketidakpastian naik turunnya harga saham.Kata kunci : perilaku investor, keputusan investasi, pasar modal syariah

scholarly journals Faktor-Faktor Yang Dipertimbangkan Investor Dalam Melakukan Investasi

2011 ◽  
Vol 4 (3) ◽  
Author(s):  
Linda Ariany Mahastanti
Keyword(s):  
Educational Level ◽  
Investment Decision ◽  
Investment Decisions ◽  
Demographic Variables ◽  
Investor Behavior ◽  
Primary Data ◽  
High Educational Level ◽  
Behavioral Variables ◽  
Retail Investor ◽  
Economic Perspectives

Investor has many options in an investment with the current number of investment instruments. Previous studies of retail investor behavior have examined motivation from economic perspectives or studied relationships between economic, behavioral and demographic variables. Examination of the various utility-maximization and behavioral variables underlying individual investor behavior provides a more comprehensive understanding of the investment decision process. This research will examine the seven factors that considered investors' decisions to invest, and investor behavior in taking the decision to invest. The data used are primary data that obtained by sending questionnaires through via email at Danareksa investors domiciled in Salatiga and Semarang. The analysis method used is tabulation frequencies and cross tabulation (Crosstab). Based on the results of the research, it is known that the factors that considered investor' decisions is Neutral Information and Accounting Information factor. For the result of demographic aspects effect research against investment decision is investor who are aged 25-29 and 50-54 years which is considered all of the factors. While for sex, female consider many factors than male. For educational level with high educational level makes the investor pay attention to the factors that associated with investment decisions, and investors who invest for 1-3 years old considering many factors before making investment decisions.

The role of state ownership on earnings quality: evidence across public and private European firms

2018 ◽  
Vol 19 (2) ◽  
pp. 312-332 ◽  
Author(s):  
Cristina Gaio ◽  
Inês Pinto
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Capital Markets ◽  
Capital Market ◽  
Earnings Quality ◽  
State Ownership ◽  
Public And Private ◽  
Content Type ◽  
Large Sample

Purpose The purpose of this paper is to examine the role of state ownership on financial reporting quality regarding the characteristics of conservatism and earnings management. Design/methodology/approach Using a large sample of public and private European firms during the period 2003-2010, the authors test the hypotheses following Ball and Shivakumar’s (2005) model for conservatism and the modified Jones (1991) model proposed by Dechow and Sloan (1995) for earnings management. To ensure that the results are robust, the authors conduct sensitivity analysis with regard to potential endogeneity and selection bias. Findings The authors find that state-owned firms are less conservative than non-state-owned firms, which is consistent with the idea that there is less need for accounting conservatism due to government protection. The authors also show that capital markets play an important role in shaping the relation between state ownership and earnings management. Among public firms, the authors find that state-owned firms have higher abnormal accruals and worse accruals quality than non-state-owned firms, which suggests that state-owned firms are not immune to capital market pressures. Research limitations/implications The study has two limitations. First, as state-owned and non-state-owned firms face quite different incentive structures, management behavior might be determined by factors that have yet to be identified. Second, prior research results suggest an inverted U-shape relation between ownership concentration and earnings management (Ding et al., 2007). It would be interesting to investigate the impact of different levels of state ownership on earnings quality. Practical implications As the paper investigates the role of state ownership on earnings quality using a sample of European firms, it brings new insights regarding the role of state ownership in accounting quality and firm performance. In addition, it considers the role of capital markets in the relation between the quality of financial reporting and ownership by considering a sample with both public and private firms. Originality/value The study contributes to the debate about state intervention in the corporate sector, by extending the knowledge of the effects of government ownership on earnings quality by using a large sample of European firms. Furthermore, the authors also introduce the effect of capital market forces on managers’ behavior in state-owned and non-state-owned companies by analyzing private and publicly listed firms.

scholarly journals EFFECT OF FINANCIAL LITERACY AND RISK ATTITUDE ON INVESTOR BEHAVIOR

2021 ◽  
Vol 6 (2) ◽  
Author(s):  
Livia Della Ramandhanty ◽  
Alfiyatul Qomariyah S.Ak., M.BA., Ph.D., ◽  
Fatih Andesita Wuri Bemby
Keyword(s):  
Capital Market ◽  
Financial Literacy ◽  
Structural Equation ◽  
Sampling Method ◽  
Investment Decisions ◽  
Risk Attitude ◽  
Research Data ◽  
Investor Behavior ◽  
Investment Risk ◽  
Equation Modelling

This research aims to examine the related effects of financial literacy and risk attitudes towards investor behavior in the Indonesian capital market with the motive of saving as a mediating variable. This study uses a quantitative approach and partial least squares- structural equation modelling (PLS-SEM) to test hypotheses. The research data was obtained from 110 questionnaires distributed to capital market investors in Indonesia using the purposive sampling method. The results of this study indicate that financial literacy, risk attitude and saving motives have positive and significant effects on investor behavior in the Indonesian capital market. The influence of financial literacy and risk attitude also has a positive and significant effect on saving motives. However, the motive for saving money cannot mediate the effect of financial literacy and risk attitude on investor behavior. Theoretically, the implications of the results of this study are the level of financial literacy, risk attitude, and saving motives can directly influence investor behavior. The higher the financial literacy, the better the attitude in facing investment risk and the greater the motive for saving, the better the investor's behavior in making investment decisions. Whereas in practical terms, this implication is used as input for investors to further increase financial literacy, pay attention to the level of risk of selected investments, and enlarge the motives for saving so that the purpose of investing can be achieved well.

scholarly journals Perilaku Investor Muslim Dalam Bertransaksi Saham di Pasar Modal

2015 ◽  
Vol 1 (12) ◽  
pp. 874
Author(s):  
Pramita Agustin ◽  
Imron Mawardi
Keyword(s):  
Capital Market ◽  
Investment Decision ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Point Of View ◽  
Investor Behavior ◽  
Case Study Method ◽  
Stock Transaction

This research aims to know the muslim investor behavior in a stock transaction in capital market. This research used the qualitative approach, using the case study method by basing on the theory of behavioral finance.Data collection using a purposive sampling technique to determine informants amounted to five muslim investors who at least has a two year stock transaction to be interviewed in depth, observed and evaluated the data by performing a triangulation.The results of this research have findings that muslim investor behavior in a stock transaction is divided into two point of view that is, investors who consider religion in their investment decisions and the invetor did not consider religion in their investment decisions. Investors who consider religion in their investment decisions preferring stock composition of the incoming Sharia index list and nature of investments tend to be long term. Investors who do not consider religion in choosing his investment decision stock blends well in the Shariahcompliantindex or not. The nature of investment investors who did not consider the shortterm nature of the religion.

scholarly journals Islamic Financing Instrument Under Indonesia Positive Law

2018 ◽  
Vol 2 (2) ◽  
pp. 187-203
Author(s):  
Supardan Mansyur ◽  
Usman Usman ◽  
Lalu Sabardi
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Banking Industry ◽  
Human Life ◽  
The Other ◽  
Islamic Banking ◽  
Role Of Government ◽  
Capacity Enhancement ◽  
Positive Law

Islam governs all aspects of human life. It is not regulate the human relation to Allah only but also between human each other, among other economy like financing comply with shari’ah. The issues are: (1) how is the regulation of financing comply with shari’ah regulated ini positive law in Indonesia; and (2) handicap   faced in its application in Indonesia. The purposes of this research are to know: (1) its regulation on positive law, and (2) its handicap in its application Indonesia. Its results are: (1) Islamic financing in Indonesia is regulated in various rules and regulation and their implementation strengthening its existing in positive law in Indonesia as   Act No.7/1992 on Banking (amended by  Act No. 10/1998), Act No. 23/ 1998 on Indonesia Bank  (amended by Act No. 3/2004), and Act  No. 21/ 2008 on Islamic banking, particular to Shari’ah Capital Market its regulation is regulated by OJK Decision and DSN-MUI Fatwas; (2) murabahah based financing) dominating all financing of Indonesian banking industry is considered  as the cause of Islamic Banking avoided to use Mudharabah and Musharakah is their higher risk. Related to these difficulties is recommended to be: (1) expected to Government and DPR to enact the statute on Islamic on Islamic Capital Market putting the Islamic Capital Market equal to the Conventional Capital Markets (2) The role of Government and the other institutions to cope handicap faced as highlight the capacity enhancement of Islamic financing institutions, regulations,  and development of infrastructures   supporting the Islamic financing application, are absolutely needed.

scholarly journals PREVENTING CAPITAL MARKET VIOLATIONS AND CRIMES IN THE CONTEXT OF THE SELF­REGULATORY ORGANIZATION FUNCTION

2015 ◽  
Vol 26 (3) ◽  
pp. 457
Author(s):  
Mrs. Sulistyowati ◽  
Mr. Paripurna
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Preventive Measures ◽  
Stock Exchange ◽  
Main Role ◽  
Compliance Level ◽  
Regulatory Organization ◽  
Additional Role

This study examines the preventive measures that can be taken by the Indonesian Stock Exchange (IDX) in their capacity as an SRO in response to capital market infractions. The main role of IDX is as a provider of facilities and infrastructure in capital market activities. Nonetheless, as a self- regulatory organization (SRO) IDX has additional role as regulator of the capital markets with limited authority. This study found that IDX was quite consistent in upholding the legislation in the field of capital markets. However, compliance level of the exchange members is still quite low. Penelitian ini meneliti langkah-langkah pencegahan pelanggaran dan kejahatan pasar modal yang dapat diambil oleh BEI dalam kapasitasnya sebagai SRO. Peran utama BEI adalah sebagai penyedia sarana dan prasarana dalam kegiatan kepasarmodalan. Meskipun demikian, sebagai self-regulatory organization(SRO) BEI mempunyai peran tambahan sebagai regulator pasar modal dengan kewenangan terbatas dalam menetapkan peraturan. Penelitian ini menemukan bahwa BEI telah cukup konsisten dalam menegakkan peraturan perundang-undangan di bidang pasar modal. Akan tetapi tingkat kepatuhan anggota bursa dapat dikatakan masih cukup rendah.

scholarly journals Corporate governance, agency costs and investment appraisal: An assessment

2012 ◽  
Vol 9 (4-2) ◽  
pp. 208-220
Author(s):  
Baliira Kalyebara ◽  
Abdullahi D. Ahmed
Keyword(s):  
Corporate Governance ◽  
Interest Rates ◽  
Capital Markets ◽  
Capital Market ◽  
Firm Value ◽  
Agency Costs ◽  
Investment Decisions ◽  
Market Interactions ◽  
Investment Appraisal

Undoubtedly, capital markets have an impact on investment appraisal decisions through interest rates (cost of capital) charged and debt covenants stipulated in debt contracts. However, the extent of influence of their interactions in shaping and determining a firm’s corporate governance policy, agency costs, investment decisions and firm value has been overlooked or not duly emphasised in the literature to date. This lack of interdisciplinary research in areas such as finance, accounting, capital markets and corporate governance may lead financial managers making wrong interpretation of the current empirical evidence. This may result into suboptimal decisions in capital budgeting decisions. There are various existing studies that have discussed the relation between corporate governance and one or two other business topics this paper is assessing. However, questions have persisted about the role capital markets’ interactions play in determining firm’s corporate governance, minimizing agency costs, long term investment decisions and firm value. The recent high profile global company collapses mainly due to poor corporate governance mechanisms have rekindled the interest in the role capital market interactions play in formulating firm’s corporate governance rules and policies and their impact on agency costs, investment appraisal decisions and firm value. This study intends to assess this issue and critically evaluates these related issues. The impact of multiple objectives on long-term investment decisions is also discussed. We find that capital market interactions have a significant impact in the way firms formulate their corporate governance, identify and control agency costs, optimize multiple objectives, make investment decisions and determine firm value. In a nutshell, there is a consensus among researchers that capital markets impact on capital investment decisions and firm value through interest rates, debt covenants that impact on managers’ self-interest behaviour, corporate governance policies and agency costs.

THE ROLE OF ISLAMIC lJTIHAD IN THE REGULATION AND CORRECTION OF CAPITAL MARKETS

1997 ◽  
Vol 14 (3) ◽  
pp. 39-66
Author(s):  
Taha Jabir Al-'Alwani
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Economic Thought ◽  
Primary Sources ◽  
Third Century ◽  
Main Theme ◽  
Economic Choice ◽  
Ethics And Economics ◽  
History Of

I am hesitant to speak on the role of ijtihiid in an Islamic capital market,because this topic requires understanding two important but difficultareas whose primary sources are in different languages. The first area isijtihiid which is connected withfiqh issues; the majority of its sources arein Arabic. The second area is economics which is connected with theanalysis of capital markets; the majority of its sources are in Europeanlanguages. Linking ethics and economics is necessary but difficult.Necessary, because every economic choice has a spiritual dimension.Difficult, because secular economics severs the link, by reducing valuesto tastes and arguing that different ethical values do not change themethod of choice. Therefore, properly linking ijtihiid and economics is adifficult task, requiring determined effort to refute the secular separationof ethics and economics. I spent over 100 hours thinking, reading, andanalyzing the essential points of both until I could establish commonground between them.Ijtihad is of central importance in usul al-fiqh, and concerns themethod of implementing the spirit of the sacred texts in any environment.Since the third century A.H., ijtihd has been the main theme ofdialog between the different schools of fiqh. To this day scholars debatethe issue.Economics is an important science in our time, influencing severalother sciences. Since the capital market is a significant topic in economics,it is important to understand the strengths and weaknesses of the neoclassicalanalysis of capital markets' in developing an Islamic capitalmarket. We must also understand the history of economic thought, howcapital markets became an important part of it, and why many ...

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