A Descriptive Analysis on Effect of Corporate Governance on Investor’s Decision

Purpose: The article studies the impact of internal factors and external factors influencing an investor’s investment decision. Design/Methodology: The information for the study was obtained from secondary sources like journal papers, magazines and books. Findings: Human psychology has an internal role in investing choice, whereas corporate governance is an external influence. Corporate governance plays a major role in the investment decision-making process by revealing all elements of business information, but investors understand the information according to their own assessments and assumptions based on their psychology. As a result, a firm’s transparency hardly impacts in investment decisions, and it only works to a limited extent; the rest of the investment selection process is dominated by human behaviour. However, the firm is transparent, there is no guarantee that the investor will always act rationally when making a choice for investment. Originality/Value: Every investor should make rational decisions about their investments. Therefore, it is an investor’s responsibility to follow the information provided by the firm, although some investors fail to do so. As a result of investor psychology, investors’ investment decisions are beyond the reach of business transparency. The study implies that a behavioural survey will be useful in determining the factor influencing investors’ investing decisions. Type of Paper: Conceptual Paper

Pengaruh Profitabilitas, Likuiditas, Ukuran Perusahaan Dan Keputusan Investasi Terhadap Nilai Perusahaan

Companies need funds to finance their operational activities, therefore a company must be able to attract investors to be interested in investing their capital. The high and low value of the company can be an attraction for investors. In addition to reflecting current conditions, company value can also describe the company's prospects in the future. Because it is important to do a research on what factors can have an influence on the value of the company. This study aims to analyze the effect of profitability, liquidity, firm size and investment decisions on firm value. The study was conducted on banks listed on the Indonesia Stock Exchange in 2018-2020, the sampling method used a purposive sampling technique. The analytical technique used is multiple linear regression analysis with the help of the SPSS program. The results of this study indicate that the variables of profitability, liquidity and investment decisions have a positive and significant effect on firm value. While the firm size variable has a negative and insignificant effect on firm value. Keywords: firm value, profitability, liquidity, firm size, investment decisions

Analysis of Investment Decisions at BMT Latansa Gontor Ponorogo

This study aims to examine customer decisions in investing in BMT. The theory used to predict customer decisions in investing is the theory of reasoned action. The research method used is quantitative research with data analysis techniques Structural Equation Modeling (SEM). The results showed that the sharia system, product knowledge, religiosity, attitudes, risk perception, image, and investment intentions affected investment decisions.

Presentation of Novel Multiple Regression Model for Accounting Information Quality, Corporate Investment, and Moderating Role of Ownership Structure in Companies

The conflicts of interest between managers and shareholders force managers to make decisions that do not meet the interests of shareholders. One of these decisions is to invest less in the company’s operational activities. Increasing the information quality is one way to prevent that issue, allowing stakeholders to monitor investment decisions. The present study investigates the relation of accounting information quality, corporate investment, and ownership structure for Iranian firms, using panel data analysis from 2009 to 2018. We applied a multiple regression model to test the hypotheses. The results show that the quality of accounting information significantly affects the investment decision for the company’s main operations, so the first hypothesis of the research is confirmed. At the same time, there is no effect of capital structure on accounting information quality and firms’ investment decisions. Thus, the second hypothesis of the research failed to be confirmed.

Social interactions and mutual fund portfolios: the role of alumni networks in China

PurposeThis paper aims to investigate the influence of social interactions on mutual fund portfolios from the perspective of alumni network in China.Design/methodology/approachBased on a data set that consists of 162 actively managed equity funds in China during the time period of 2003–2014, this study employs multiple linear regression model to control for organization- and location-based interpersonal connections as well as other confounding factors and clarify the causality relationship between alumni networks of mutual fund managers and their portfolios.FindingsAfter controlling for organization- and location-based interpersonal connections, we find that mutual fund managers who graduated from the same college/university have more similar stock holdings and are more likely to buy or sell the same stocks contemporaneously. As a result, alumni managers exhibit a higher correlation of fund returns. Moreover, the effect of alumni relationship on mutual fund investments becomes weaker when more managers are connected within the network. We also find that valuable information is shared among alumni managers: (1) the average returns for the alumni common holdings portfolios is significantly higher than those for non-alumni holdings portfolios and (2) a long-short strategy composed of stocks purchased minus sold by alumni managers yields positive and significant risk-adjusted returns.Practical implicationsThe findings suggest that information dissemination among connected fund managers could be one of the driving forces for mutual fund herding behavior, and that a portfolio of funds whose managers are educationally connected could be highly exposed to certain stocks and risks.Originality/valueThis paper contributes to the growing finance literature addressing the influence of personal connections on information dissemination that specifically contributes to price formation. It corresponds more closely to Cohen et al. (2008), who investigate college alumni connections between fund managers and corporate board members. Since the authors simultaneously examine three potentially overlapped social networks, which are based on education, locality and fund family, the authors are able to disentangle their effects on fund managers' investment decisions. Moreover, the findings suggest that institutional investors make investment decisions based on share private information, and therefore, it also contributes to the literature on fund herding behaviors (Grinblatt et al., 1995; Wermers, 1999).

Stock Investment Decision: The Effects of Personal Factors and Moderating Role of Years of Service

This paper aims to elaborate stock investment decision and to examine the impact of five influential factors as independent variables and the influence of years of investment as mediating variable. This paper is based on empirical study which involved 286 individual investors in Indonesia Stock Exchange using data from Riri et.al (2020). Structural equation modelling approach was used for estimating relationship between influential factors (e.g., personal financial needs, overconfidence, advocate recommendation, social relevance, and self or firm image) on stock investment decisions. The result found that decision on stock investment is determined by social relevance, overconfidence, personal financial need, and advocate recommendation significantly and positively. Years of Investment has played moderating role on relationship between for advocate recommendation and personal with stock investment decisions. Years of Investment is moderating variable to become a novelty this paper.

Effect of Liquidity And Investment Decisions on Firm Value With Profitabilitas as Intervening Variable

Penelitian ini dimaksudkan untuk meestimasi seberapa berpengaruh Likuiditas dan Keputusan Investasi terhadap Nilai Perusahaan.dengan.Profitabilitas.sebaga..variabel intervening. Studi ini memakai populasi seluruh.perusahaan sektor manufaktur yang terdaftar di.Bursa.Efek.Indonesia periode 2018-2020 sebanyak 193 perusahaan dengan jumlah sampel 93 perusahaan yang diperoleh melalui metode purposive sampling. Desain studi yang digunakan kuantitatif dengan cara penghimpunan data sekunder. Penelitian ini menggunakan metode path analysis dengan alat pengolahan data SPSS 25. Variabel independen dalam penelitian yaitu Likuiditas (CR) dan Keputusan Investasi (PER) sedangkan variabel dependennya yaitu Nilai Perusahaan (NP) serta Profitabilitas (ROA) sebagai variabel intervening. Hasil studi membuktikan Likuiditas (CR) dan Keputusan Investasi (PER) berpengaruh signifikan terhadap Profitabilitas (ROA) pada perusahaan manufaktur yang terdaftar di Busra Efek Indonesia perioe 2018-2020. Likuiditas (CR) dan Keputusan Investasi (PER) berpengaruh signifikan terhadap Nilai Perusahaan (NP) sedangkan Profitabilitas (ROA) berpengaruh tidak signifikan terhadap Nilai Perusahan (NP) pada perusahaan sektor manufaktur yang terdaftar di Bursa Efek Indonesia periode 2018-2020. Profitabilitas (ROA) tidak mampu memediasi hubungan antara Likudiitas (CR) terhadap Nilai Perusahaan (NP) pada perusahaan manufaktur yang terdaftar di Bursa Efek.Indonesia periode 2018-2020. Profitabilitas (ROA) mampu memediasi hubungan antara Keputusan Investasi (PER) terhadap Nilai Perusahaan (NP) pada perusahaan sektor manufaktur yang terdaftar di Bursa Efek Indonesia periode 2018-2020, konstribusi Likuiditas (CR) dan Keputusan Investasi (PER) terhadap Profitabilitas (ROA) sebesar 12,9% sedangkan 87,1% merupakan variabel di luar penelitian yang telah dilakukan. Kontribusi Likuiditas (CR), Keputusan Investasi (PER) dan Profitabilitas (ROA) sebesar 26% sedangkan 74% merupakan variabel di luar penelitian yang telah dilakukan