scholarly journals Asymmetric Information: Tinjauan Berdasarkan Rekomendasi Analis Sekuritas dan Revisi Earning Forecast

2020 ◽  
Vol 4 (1) ◽  
pp. 88
Author(s):  
Cicilia Erna Susilawati
Keyword(s):  
Asymmetric Information ◽  
Capital Market ◽  
Stock Price ◽  
Earnings Forecast ◽  
Market Participant ◽  
Earning Forecast ◽  
Asymmetry Of Information ◽  
Securities Analysts ◽  
Forecast Revision

Trading in the stock market occur due to differences in opinion on the expected value of the securities. In the other side, asymmetric information between investors and companies caused the stock price does not reflect the real price. So, asymmetric information should be reduced. Information by securities analysts is an information that is expected to reduce that. This study investigates the performance of securities analysts through its role in reducing asymmetric information. This is motivated by some previous studies that stated that the Indonesian capital market is inefficient, because high levels of asymmetric information. Analysts is considered as inform market participant who can reduce the asymmetric information so as to make capital market to be efficient. The role of securities analysts is seen through the product. There are stock recommendation and earnings forecast revision. Testing the consistency of the analyst's stock recommendations and earnings forecast revision before testing their impact on asymmetric information. The results showed that output in the form of stock securities analysts and earnings forecast recommendation are consistent but has not been able to reduce the asymmetry of information that occurs between investors and companies.

scholarly journals Capital Market Response to the Change in the Dividend Policy: The Case of Slovenian Stock Market

2016 ◽  
Vol 8 (1) ◽  
pp. 42 ◽  
Author(s):  
Matjaž Mikluš ◽  
Zan Jan Oplotnik
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Stock Price ◽  
Dividend Policy ◽  
Market Response ◽  
Asymmetry Of Information ◽  
Price Increases ◽  
Signalling Theory ◽  
Stock Price Reaction ◽  
Dividend Increases

<p>The three basic dividend policy theories have a completely different approach to describing the influence of dividends payment on stock price, and on the value of the company. Numerous studies conducted in this area have led to almost as many derived dividend policy theories, which are more or less related to the basic three. As one of them Wang, Manry &amp; Wandler (2011) specify the dividend signalling theory, which is based particularly on the assumption of the asymmetry of information between the company management and the shareholders and in recent decades it has been studied by many authors, who mostly concluded that dividend increase has a positive stock price reaction, and vice versa, that dividend decrease results in stock price falls (as cited in Ross, 1977; Leland and Pyle, 1977; Grinblatt et al., 1984; Baker and Phillips, 1993; Rankine and Stice, 1997; Bechmann and Raaballe, 2007). For the purposes of our analysis we adopted the methodology of foreign researches and checked the existence of the dividend signalling theory in the Slovenian stock market. The Slovenian stock market is one of developing markets, and is particularly specific due to its small size and illiquidity. Our research resulted in no statistically significant stock price increases from company dividend increases, whereby we have refuted the research hypothesis and, consequently, the dividend signalling theory in the Slovenian stock market in the described period.</p>

Discussion: “Dispersion in Analysts' Earnings Forecasts as a Measure of Uncertainty”

1998 ◽  
Vol 13 (3) ◽  
pp. 271-274 ◽  
Author(s):  
Lawrence D. Brown
Keyword(s):  
Stock Price ◽  
Annual Report ◽  
Earnings Forecasts ◽  
Analyst Forecast ◽  
Earnings Forecast ◽  
Data Set ◽  
Forecast Dispersion ◽  
Forecast Revision ◽  
Analyst Earnings ◽  
The Impact

This paper tackles an interesting question; namely, whether dispersion in analysts' earnings forecasts reflects uncertainty about firms' future economic performance. It improves on the extant literature in three ways. First, it uses detailed analyst earnings forecast data to estimate analyst forecast dispersion and revision. The contrasting evidence of Morse, Stephan, and Stice (1991) and Brown and Han (1992), who respectively used consensus and detailed analyst data to examine the impact of earnings announcements on forecast dispersion, suggest that detailed data are preferable for determining the data set on which analysts' forecasts are conditioned. Second, it relates forecast dispersion to both analyst earnings forecast revision and stock price reaction to the subsequent earnings announcement. Previous studies related forecast dispersion to either analyst forecast revision (e.g., Stickel 1989) or to subsequent stock price movements (e.g., Daley et al. [1988]), but not to both revision and returns. Third, it includes the interim quarters along with the annual report. In contrast, previous research focused on the annual report, ignoring the interims (Daley et al. [1988]).

The role of toeholds on asymmetric information in mergers and acquisitions

2017 ◽  
Vol 34 (2) ◽  
pp. 260-280
Author(s):  
Sebouh Aintablian ◽  
Wissam El Khoury ◽  
Zouhaier M’Chirgui
Keyword(s):  
Asymmetric Information ◽  
Mergers And Acquisitions ◽  
Intangible Assets ◽  
Negative Relationship ◽  
Multinomial Logit Model ◽  
Target Firm ◽  
Content Type ◽  
Tender Offers ◽  
Asymmetry Of Information

Purpose This paper aims to examine empirically the role of toeholds in reducing asymmetric information in mergers and acquisitions by establishing a relationship between the toehold and some relevant characteristics of the acquiring and the target firm. Design/methodology/approach A regression analysis is conducted to examine the relation between the dependent variable (the toehold) and a set of independent variables. A multinomial logit model is used to test for the occurrence of toeholds. A probit selection model and two-step Heckman correction tests are used to correct the data and to check for robustness of the results. Findings The regression results for acquisitions with prior toeholds are consistent with the studied hypotheses that asymmetric information is more observed in foreign acquisitions, in different industries, with tender offers and with higher levels of intangible assets. A negative relationship is found between toehold size and the number of competing bidders. Originality/value Consistent with previous literature, the study finds that majority of bidders abstain from purchasing a toehold before entering a bid contest. The study also emphasizes the role of intangible assets in assessing the efficacy of toeholds under asymmetric information. The ratio of target intangible assets to target total serves as a proxy for asymmetric information. Regression results are consistent with the hypotheses that asymmetry of information is observed when the acquiring and the target firm operate in different countries and industries.

scholarly journals Asymmetric information in IPO underpricing — literature review

2021 ◽  
Vol 36 ◽  
pp. 115-127
Author(s):  
Martyna Żyła
Keyword(s):  
Initial Public Offerings ◽  
Capital Market ◽  
Stock Price ◽  
Ipo Underpricing ◽  
Market Anomalies ◽  
Public Offerings ◽  
Explanatory Variables ◽  
Asymmetry Of Information ◽  
Market Participants ◽  
Offering Price

Market anomalies after initial public offerings are a subject of extensive scientific research. One of such anomalies is underpricing, which refers to an increase of stock price in relation to the offering price shortly after stock issue. The occurrence of underpricing has been verified in many markets; however, the reasons for this phenomenon have not been yet conclusively established. The existence of information asymmetry in the capital market is one of the most popular assumptions applied in the studies in an attempt to explain the reasons why issuers discount the price of their offers. The purpose of this paper is to present the explanatory underpricing theories which are based on the asymmetry of information present between market participants, and to summarize the explanatory variables of underpricing that stem from the theory.

scholarly journals Pasar Modal dan Penanaman Modal Asing di Indonesia

2021 ◽  
Vol 4 (2) ◽  
pp. 477-484
Author(s):  
Poppy Camenia Jamil ◽  
Restu Hayati
Keyword(s):  
Foreign Investment ◽  
Capital Market ◽  
Stock Price ◽  
Stock Exchange ◽  
Stock Index ◽  
Economic Activities ◽  
Investment Capital ◽  
The Relationship ◽  
The Capital Market

The role of the capital market for the economy of a country according to capital market education by PT. There are two functions of the Indonesia Stock Exchange, namely as a means of business funding or as a means for companies to obtain funds from investors (investors) for business development, expansion, additional working capital and others. This study aims to explain the relationship between the capital market and foreign investment in Indonesia. The variables used in this study are the return of the Composite Stock Price Index (IHSG) and Foreign Direct Investment (FDI) from 2003 to 2019. Data analysis techniques use regression analysis to explain the relationship between the capital market and foreign investment in Indonesia. Indonesia. The final results of the achievements in this study are to increase literacy understanding about economic activities, capital markets, investment to contribute to economic growth.  Keywords: IHSG, FDI, Investment, Capital Market, Stock Index.

scholarly journals Analysis of Securities Analysts Impact on China’s Capital Market Efficiency

2016 ◽  
Vol 2 (1) ◽  
pp. 110
Author(s):  
Bing Yang ◽  
Xiaolin Li
Keyword(s):  
Market Efficiency ◽  
Capital Market ◽  
Stock Price ◽  
Allocation Of Resources ◽  
Stock Price Synchronicity ◽  
Empirical Results ◽  
Regulatory Authorities ◽  
Securities Analysts ◽  
Securities Industry ◽  
The Impact

This paper explores the impact of securities analysts on China’s capital market efficiency from the perspective of the stock price synchronicity. Empirical results show that increased securities analysts can improve capital market efficiency, but this effect is limited with economical insignificant. We recommend that the Chinese Securities’ Regulatory Authorities need to further the reform of the securities industry consulting system, thus enhance the capital market efficiency of allocation of resources.

scholarly journals Moderasi Perbedaan Opini terhadap Faktor-Faktor Kinerja Harga Saham pada Perusahaan Sektor Pariwisata Saat Pandemi Covid-19

2021 ◽  
Vol 31 (10) ◽  
pp. 2663
Author(s):  
I Gst Ayu Eka Damayanthi ◽  
Ni Ketut Lely Aryani Merkusiwati
Keyword(s):  
Stock Returns ◽  
Capital Market ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Price Performance ◽  
Tourism Sector ◽  
Differences Of Opinion ◽  
Positive Effect

An uncertain and crisis-prone economy has an impact on the capital market in Indonesia. This study aims to analyze the effect of profitability, leverage , liquidity and differences of opinion on stock price performance and the role of investors' differences of opinion in moderating the effect of profitability, leverage , and liquidity on stock price performance. The population in this study is the tourism sector companies listed on the Indonesia Stock Exchange. The number of research observations was 136 observations. Data analysis used moderated regression analysis. The results of the study of profitability and leverage have a positive effect on stock returns . Leverage  which has no significant effect on stock returns . The results of this study also do not prove that differences in investor opinions moderate the effect of profitability, leverage , liquidity on stock price performance, possibly because tourism sector companies are not very favored by investors so that stock prices do not move much during the Covid-19 pandemic. Keywords: Profitability; Leverage; Liquidity; Stock Price Performance.

The Role of Market Sentiment in Stock Price Movements

2015 ◽  
pp. 24-43
Author(s):  
Kiranjit Sett ◽  
Debabrata Mukhopadhyay
Keyword(s):  
Time Series ◽  
Stock Price ◽  
Fair Value ◽  
Stock Exchanges ◽  
Asymmetry Of Information ◽  
Market Sentiment ◽  
New Information ◽  
Available Information ◽  
Fundamental Values

In an efficient capital market, the prices of securities always fully reflect all available information implying that prices always reflect the fundamental values. When there is under reaction or over reaction to new information, competition among the arbitrageurs quickly brings the price of an asset back to its fair value. But, if the asymmetry of information about a stock is high and there is a ‘limit to arbitrage', sentiment of the noise traders is likely to influence the price of that stock. This chapter aims at studying the role of market sentiment, during the period which starts with June 2003 and ends with July 2011, in influencing the return from investment in small capitalization stocks listed on Indian stock exchanges. We have found the presence of ARCH (1) in the time series on returns. Market sentiment, rate of interest and inflation are found to have significant influence on return from investment in small capitalization stocks. The presence of month effects in returns from such stocks has also been detected.

scholarly journals PERAN BPKH TERHADAP PENGEMBANGAN PASAR MODAL SYARIAH DALAM UU NOMOR 34 TAHUN 2014 TENTANG PENGELOLAAN KEUANGAN HAJI

2019 ◽  
Vol 13 (2) ◽  
pp. 201-232
Author(s):  
Ahmad Fauzi
Keyword(s):  
Mutual Funds ◽  
Capital Market ◽  
Financial Services ◽  
Financial Management ◽  
Stock Price ◽  
Government Regulation ◽  
Price Index ◽  
Development Expenditure ◽  
Strategic Position

Law Number 34/2014 concerning Hajj Financial Management, mandates to establish a special hajj financial management body (Hajj Fund Management Agency, BPKH) tasked with managing the revenue, development, expenditure, and accountability of Hajj finance. BPKH has the authority to manage hajj funds around IDR 115 trillion as of April 2019. BPKH must place these funds into sharia investment instruments, taking into account safety, prudence, value of benefits and liquidity. According to Government Regulation Number 5/2018 (PP No. 5/2018), a minimum of 15% of the pilgrimage funds will be placed on the Islamic capital market. The form can be State Sharia Securities, Bank Indonesia Sharia Certificates, sharia shares, sukuk, mutual funds and various other sharia securities recognized by the Financial Services Authority (OJK). BPKH's investment in the Islamic Capital Market will gradually increase to 35% in 2021 with the amount estimated to reach IDR 47.35 trillion. The strong role of the increasing Islamic Capital Market in forming market capitalization (the Composite Stock Price Index, IHSG) indicates that the Islamic Capital Market has a large role in driving economic growth in Indonesia. So BPKH investment has a strategic position in the effort to develop the Islamic Capital Market in Indonesia.

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