UKURAN PERUSAHAAN DAN TINGKAT LEVERAGE SEBAGAI PENDORONG PENERAPAN HEDGING UNTUK MENEKAN RISIKO IDIOSINKRATIK

This research aims to investigate the role of firm size and leverage to be determinants of hedging application in order to suppress idiosyncratic risk. This research measured firm size using natural logarithm of total assets, debt to equity ratio for leverage, dummy variable for hedging activity, and Three Factor Model by Fama and French for idiosyncratic risk. The main theory used in these research are signaling theory and agency theory. The population used is non-financial companies listed on the Indonesian Stock Exchange for period of 2013-2017. The number of samples are 94 firms each year, selected by purposive sampling method. This research used documentary data, such as the annual report and financial statements. This research also used path analysis to analyze the data and sobel test to analyze the mediation role of hedging. The results of this research show that firm size and leverage have a positive and significant effect to hedging. Firm size has a positive but not significant effect to idiosyncratic risk, whilst leverage has a positive and significant effect to the latter. Firm size has a significant effect to idiosyncratic risk through hedging activity as mediator. Surprisingly, leverage does not need hedging to mediate its effect to idiosyncratic risk. This research is expected to be a reference for management to improve firm performance so it could gain investor trusts through hedging application as financial strategy. Investor could also use the results of this research as considerations for investment decision making.

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Is idiosyncratic risk ignored in asset pricing: Sri Lankan evidence?

Future Business Journal ◽

10.1186/s43093-019-0004-6 ◽

2019 ◽

Vol 5 (1) ◽

Cited By ~ 3

Author(s):

Moinak Maiti

Keyword(s):

Factor Model ◽

Stock Exchange ◽

Investment Decision ◽

Idiosyncratic Risk ◽

Idiosyncratic Volatility ◽

Sri Lankan ◽

Cross Sectional ◽

Volatility Risk ◽

And Performance ◽

Three Factor

AbstractThe present study focused on one of the important South Asian nations—Sri Lanka—to examine the role of idiosyncratic volatility in asset prices. A four-factor model with idiosyncratic volatility was designed for capturing the market, size, value and idiosyncratic risk yields better than Fama and French’s (J Financ Econ 33:3–56, 1993) three-factor model and performance of the model. Fama–MacBeth’s cross-sectional regression, residual graphs and GRS test all confirm the superiority of four-factor model over 2 three-factor models. For all MC- and IVOL-based portfolios, idiosyncratic volatility is negatively related to the expected returns and positively related for all PB-based portfolios. Finally, study findings confirm that there is a high importance for idiosyncratic volatility risk factor while considering investment decision in Colombo stock exchange. Hence, investor should compensate for holding such risk factors in the portfolio.

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EFFECT OF EMOTIONAL INTELLIGENCE AND FINANCIAL LITERACY ON INVESTMENT DECISION MAKING WITH A MEDIATING ROLE OF RISK PERCEPTION

Jinnah Business Review ◽

10.53369/fxpp3681 ◽

2014 ◽

Vol 02 (02) ◽

pp. 12-20

Author(s):

Sahar Parvez ◽

Keyword(s):

Emotional Intelligence ◽

Risk Perception ◽

Financial Literacy ◽

Stock Exchange ◽

Investment Decision ◽

Investment Decisions ◽

Mediating Role ◽

Investment Decision Making ◽

The Impact

This research paper examines the impact of emotional intelligence and financial literacy on investment decision with a mediating role of risk perception. The data is collected by using questionnaire, from a sample of 152 investors, from stock exchange and banks. The results support that to make adequate investment decisions, investors should be financially literate and have control on their emotions. However, risk perception of investors does not mediate this relationship.

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The Influencing Factors on Decision Investment: Case Study on 5 Mining Firms in 5 Countries in South East Asia

Webology ◽

10.14704/web/v18si03/web18035 ◽

2021 ◽

Vol 18 (Special Issue 03) ◽

pp. 202-222

Author(s):

Narumondang Bulan Siregar ◽

Silvana Fransisca Hutajulu

Keyword(s):

Decision Making ◽

Cash Flow ◽

Firm Size ◽

Stock Exchange ◽

Investment Decision ◽

Secondary Data ◽

The Philippines ◽

Annual Reports ◽

Investment Decision Making ◽

Stock Exchange Of Thailand

This research aimed is to find out the factors influencing decision-making in mining firms listed in Indonesian Stock Exchange, Bursa Malaysia, the stock Exchange of Thailand, the Philippines Stock Exchange and Singapore Exchange from 2014 to 2018. This study employed multiple linear regression to examine independent variable influences such as cash flow, firm size, leverage and investment opportunities. Total asset growth is the metric used to calculate investment decision. Secondary data were retrieved by the audited Mining Corporation Report and Annual Reports from the Indonesian Stock Exchange, Bursa Malaysia, the Philippines Stock Exchange, the Singapore Exchange and the Stock Exchange of Thailand from 2014 to 2018 in web.idx.id, www.bursamalaysia.com.com, www.pse.com.ph, www.set.or.th and the www2.sgx.com/ The findings suggest that cash flow and firm size have a beneficial impact on investment decision-making, leverage has a detrimental influence on investment decision-making whereas acquisition incentives have little impact on investment decision-making.

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PENGARUH PROFITABILITAS, UKURAN PERUSAHAAN, PRODUKTIVITAS, DAN REPUTASI AUDITOR TERHADAP PERINGKAT SUKUK

Jurnal Wahana Akuntansi ◽

10.21009/wahana.012/1.2 ◽

2017 ◽

Vol 12 (1) ◽

pp. 13

Author(s):

Galih Estu Pranoto ◽

Ratna Anggraini ◽

Erika Takidah

Keyword(s):

Firm Size ◽

Stock Exchange ◽

Listed Company ◽

Research Result ◽

Secondary Data ◽

Negative Influence ◽

Natural Logarithm ◽

Result Show ◽

Equity Ratio ◽

Auditor Reputation

The purpose of this research is to find out the effect between the profitability, firm size, productivity, and auditor reputation toward rating sukuk. Rating sukuk is the dependent variables in this research were measured by scoring technique based on Pefindo’s rating. For the independent variables in this research, using profitability were measured by return of equity ratio, firm size were measured by natural logarithm of total asset, productivity were measured by comparison sales with employees, auditor reputation using dummy method. This research using secondary data which is non bank companies from Indonesian Stock Exchange Listed Company and rated by Pefindo in 2009-2013. While the sampling method used was purposive method which is overall 35 sample choose. This research uses logistic ordinal regression to test the hypothesis with SPSS computer program. The research result show that produktivity and auditor reputation partially have a significant negative influence toward rating sukuk, while profitability and firm size have no significant influence toward rating sukuk.

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Pengaruh Firm Size dan Market to Book Ratio terhadap Return Portofolio

JURNAL MANAJEMEN DAN BISNIS SRIWIJAYA ◽

10.29259/jmbs.v15i2.5701 ◽

2018 ◽

Vol 15 (2) ◽

pp. 138-145

Author(s):

Dormauli Justina

Keyword(s):

Firm Size ◽

Financial Distress ◽

Factor Model ◽

Stock Exchange ◽

Investment Decision ◽

Average Return ◽

Negative Effect ◽

Manufacture Firm ◽

Book To Market Ratio ◽

Portfolio Return

Tujuan penelitian – To examine effect of firm size and market to book ratio on portfolio return.Desain/Metodologi/Pendekatan – Research sample consists of manufacture firm stock listed in Indonesian Stock Exchange 2011-2013. Portfolio return measured by excess return of average 5 highest return and 5 lowest return. Portfolio firm size measured by differences of average return of 5 biggest firm size with 5 smallest firm size. Portfolio book to market ratio measured by differences of average return of 5 highest book to market ratio with 5 lowest book to market ratioTemuan – Based on regression analysis, firm size and book to market ratio have negative effect on portfolio return. The result confirms existence of three factor model in return determination. Investor captures the size effect and financial distress indication of book to market ratio in return estimation and stock investment decision making.Keterbatasan penelitian – This research only used manufacture firm as sample, so the result could not be generalized to all firm population at Indonesia Stock Exchange. This research also did not separate between active stock and inactive stock which were traded monthly, so it probably there was bias return calculation because of the inactive stock.Originality/value – the high of book to market ratio showed that the firm had bad performance and tend to financial distress or poor prospect.

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Demographic Factors and Herding Behaviour of Investors: Moderating Role of Islamic Religiosity

Review of Applied Management and Social Sciences ◽

10.47067/ramss.v3i2.53 ◽

2020 ◽

Vol 3 (2) ◽

pp. 193-203

Author(s):

Saeed Ahmad Sabir ◽

Tasawar Javed ◽

Waseem Ul Hameed ◽

Hummaira Qudsia Yousaf

Keyword(s):

Quantitative Research ◽

Stock Exchange ◽

Investment Decision ◽

Demographic Factors ◽

Individual Investors ◽

Policy Makers ◽

Investment Decision Making ◽

Relationship Of ◽

Moderating Role

Investors indulge in biases while making investment decision because investment decision making in stock market is a difficult process. One of the factors that affect risk taking behaviour of individual investors is Demographic factor. However, little work has been done to investigate the effect of demographic factors on herding behaviour of individual investors of Pakistan stock exchange. Therefore, the ultimate aim of this study is to highlight the role of the effect of demographic factors on herding behavior of investors with moderating role of Islamic religiosity. Quantitative research method was employed and data collected was collected from 166 individual investors by using survey questionnaires. Convenience sampling method was used to collect the data. Partial Least Squares analysis was conducted to test the hypotheses. The findings of this study directed that Islamic religiosity moderate the relationship of demographic factors with herding behaviour. This study is contributed a new empirical insights on behaviour of Pakistan stock market’s investors, therefore the results of this study have implications for policy makers of Pakistan stock exchange (PSX) while they making the strategies related to investment.

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The influence of profitability, firm size, productivity and reputation of the auditor on the rating of Sukuk.

Jurnal Wahana Akuntansi ◽

10.21009/wahana.12.012 ◽

2017 ◽

Vol 12 (1) ◽

pp. 13-27

Author(s):

Galih Estu Pranoto ◽

Ratna Anggraini ◽

Erika Takidah

Keyword(s):

Firm Size ◽

Stock Exchange ◽

Listed Company ◽

Research Result ◽

Secondary Data ◽

Negative Influence ◽

Natural Logarithm ◽

Result Show ◽

Equity Ratio ◽

Auditor Reputation

The purpose of this research is to find out the effect between the profitability, firm size, productivity, and auditor reputation toward rating sukuk. Rating sukuk is the dependent variables in this research were measured by scoring technique based on Pefindoâ€™s rating. For the independent variables in this research, using profitability were measured by return of equity ratio, firm size were measured by natural logarithm of total asset, productivity were measured by comparison sales with employees, auditor reputation using dummy method. This research using secondary data which is non bank companies from Indonesian Stock Exchange Listed Company and rated by Pefindo in 2009-2013. While the sampling method used was purposive method which is overall 35 sample choose. This research uses logistic ordinal regression to test the hypothesis with SPSS computer program. The research result show that produktivity and auditor reputation partially have a significant negative influence toward rating sukuk, while profitability and firm size have no significant influence toward rating sukuk.

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