Analysis of Factors Affecting Public Interest in Investing in the Capital Market (Case Study on the Paluta Community)

The purpose of this study is to find out how the Paluta community's opinion on the factors that influence people's interest in investing in the capital market, of the 28 respondents who filled out the questionnaire, the Paluta community knew what investment in the capital market was. And investment in the capital market is an investment activity in the form of buying company shares (securities). So by buying company shares, you become the owner of the company. In addition to stocks, investment products in the capital market are mutual funds and bonds.

The Effect of COVID-19 Pandemic on Corporate Dividend Policy in Indonesia: The Static and Dynamic Panel Data Approaches

This research examines the effect of the crisis due to the COVID-19 pandemic on dividend policy in Indonesia. The purposive sampling method was used to collect data from corporates listed on the IDX from 2014 to 2020 and analyzed using static and dynamic panel data approaches. The fixed-effect models (FEM) were selected for the static panel data regression. Meanwhile, the first difference-generalized method of moments (FD-GMM) and system-generalized method of moments (SYS-GMM) were used for determine the robustness of the estimated dynamic panel data. The results showed that the crisis due to the pandemic led to higher dividend distribution on SYS-GMM. Furthermore, companies maintained the dividend level as a positive signal for investors which lifted the sluggish trade condition in the capital market. Profitability and previous year dividends positively affect dividend policy robustly. Furthermore, the results showed that age affects dividend policy on FD-GMM. Financial leverage has a robust effect, and firm size has an effect on FD-GMM in different directions, while investment opportunity does not affect dividend policy. Statistically, the FEM selected that violates the best linear unbiased estimation was proven to form parameters that were not much different from the estimates produced by the dynamic model, both from the coefficient of influence direction and significance, and the omitted variable bias occurs as evidenced in the robust test with dynamic model was solved. This research is also used as a reference for considering investors’ investment decisions in the new normal condition. Therefore, dividend policy can be considered as a positive signal to investors with the ability to stock trading activities in the capital market.

Differences in Investment Concepts between Chinese and Western Investors from the Cultural Perspective

The investment concept, reflecting the investor's investment purpose and willingness, is a value that embodies the investor's investment personality characteristics, prompts investors to carry out investment analysis, judgment, decision-making, and guides investor behaviors. Due to different maturity of the capital market in China and Western countries, there are many differences in the regulatory level, cultural and behavioral patterns of the supervision and management departments of the capital market between Chinese and Western investment philosophy. This article analyzes the differences in investment ideas between Chinese and Western investors from the culture perspective. This thesis studies on the basis of four cultural differences: "The Golden Mean" and "Interest Maximization"; the face-culture and individualism; rule of man and rule of law; and gambler psychology and adventure spirit. Based on these four aspects of cultural differences, four different investment concepts of Chinese and Western investors are analyzed: long-term investments and short-term speculation; "Herd Effect" and independent decision; grapevines and public information; and leveraged trading and allocation of funds. This thesis adopts several cases to analyze the differences between Chinese and Western investors in financial products such as stocks, gold, and futures, and in investment behavior such as the long-term investment, short-term speculation, leveraged trading, and investment portfolios. With cultural differences between China and the West probed into, the differences between Chinese and Western investors' investment concepts are justified. It is hoped that this effort will help investors deepen the understanding of the capital markets in China and the West, enable Chinese investors to learn the Western mature investment concepts, and facilitate the regulators to manage the capital market effectively.

FAKTOR-FAKTOR YANG MEMPENGARUHI TINGKAT FINANCIAL LITERACY INVESTOR DI KOTA DENPASAR PADA BURSA EFEK INDONESIA

This study aims to analyze the effect of education level, gender, income, and marital status simultaneously and partially on the financial literacy level of investors in the capital market in Denpasar City. The research population is the entire community of Denpasar City who invests in the capital market, with a total sample of 100 respondents who were determined based on accidental sampling of a snowball combination. The research method uses primary data (observation, structured interviews, and in-depth interviews). The data analysis technique used was multiple linear regression with those analyzed by the SPSS program. The results showed that, 1) simultaneously the variables of education, gender, income, and marital status had a significant effect on the level of financial literacy of investors in the capital market in Denpasar City; 2) partially education and income variables have a positive and significant effect on the level of financial literacy of investors in the capital market in Denpasar City, the level of financial literacy of capital market investors in Denpasar City, which is male is greater than that of female, and financial level the literacy of capital market investors in Denpasar City who are married is greater than those who are not married.

The Impact of External Factors on Stock Return Volatility in the European Banking Sector

Purpose: The main aim of the paper is to examine the impact of external determinants on the banking stock return volatility to evaluate it in terms of the stock market capitalization. Design/methodology/approach: The research was conducted on 182 banks from 26 countries. The sample selected for the study includes all European banks listed on the stock exchange. Quarterly data from the period between 2004 and 2016 was used; it was collected and compiled over a period of 2 years. The research method applied was the panel data model with fixed effects (with or without a robust estimator) and random effects. Findings: Determinants that have a major and statistically significant impact on the analyzed dependent variables are: the unemployment rate, the real interest rate, the beta in Sharpe’s Single-Index Model and the implied volatility of the S&P 500 index and the EURO STOXX50 index. Research limitations/implications: Insights about the strength and direction of influence of these variables on stock return volatility are a valuable addition to the existing body of knowledge that investors resort to when making decisions relating to the capital market. Limitations: The main limitation of this study lies in the fact that the results of the analysis apply solely to the banking sector. Originality/value: Insights about the strength and direction of influence of these variables on stock return volatility are a valuable addition to the existing body of knowledge that investors resort to when making decisions relating to the capital market.

Capital market instruments in the financing of local government units

The aim of the article is to indicate the organised capital market as a place for raising capital for local government and municipal companies; the scope of regulations and knowledge about the capital market for local government units is presented, including studies on the assessment of factors affecting the development of LGUs using the issue of municipal bonds in the capital market.

Demand for Financial Service in Capital Market of Nepal

Background: In the contemporary literature, access to finance is well spell-out as the key to development. The supply leading hypothesis asserts that financial deepening contributes to enhancing growth so, the growth of the financial market is regarded as an important infrastructure to influence saving and investment. The Government of Nepal opted for a policy ‘One person one bank account’ in its fiscal policy in 2018/19 (MOF, 2018). Aligning the policy, the Securities Board of Nepal (SEBON) launched the ‘one Nepali one D-mat account’ policy in 2018 to increase the access of the capital market throughout the country. The low-financial literacy base is a major constraint to develop the market, in the other, most of the rural population, still are not equipped with the capital market instrument. In, this background, there is an utmost need to examine the factors contributing the demand for the financial services. Objective: The primary objective of the study is to access the determinants of the demand for financial services in the capital market of Nepal, considering the supply leading hypothesis. Method: To examine the determinants of the demand for financial service, we employed the Ordinary Least Square method of regression analysis. The dependent variable employed in this study is the demand for financial services. Level of income, access to finance and financially active provinces have been taken as the independent variable along with the concerned district population. As well, the financial literacy program conducted by the capital market regulator is another major independent variable. Result: The demand following hypotheses asserts that financial literacy is the key to influence the demand for financial services. It is found that financial literacy programs conducted by the capital market regulator could not explain the demand for financial services in Nepal indicating the weak performance of the program conducted by SEBON. It is found that the number of BFIs, population and financially active provinces are highly significant with the demand for financial services indication the influential role of supply leading hypothesis. Conclusion: The study concludes that the variables selected to determine the demand for financial services in capital market are appropriate and most of them (population, per capita income, financially active provinces and access to financial services) are significant with the capital market of Nepal. It is observed that the financial literacy programs conducted by the capital market regulator have not contributed in enhancing demand of the financial services in the capital market of Nepal. Recommendation: The study is focused and based on the capital market of Nepal. Results obtained from this study could not replicate the same in the money market or insurance sector of Nepal. The findings of the study strongly recommend the regulatory body to evaluate and revise its financial literacy programs while in the meantime urge to focus on addressing demand-side inefficiencies in the long run. Originality: The research work is original and has not been published in other publications. As well, no financial support has been received for the study.

Analisis Faktor-Faktor yang Mempengaruhi Minat Mahasiswa Berinvestasi di Pasar Modal Syariah

Investment is the process of saving money and putting it somewhere in the hope that it will increase in value. Many people are not familiar with the capital market, and many people who don't know much about it are more likely to invest in it and fall victim to fraud. In order to reduce fraud and feel safe when investing, the Indonesian people need to learn investment knowledge. The growth of Islamic banks has helped Islamic law develop as a part of the financial market. Although Indonesia is currently being hit by the Covid-19 pandemic, it is undeniable that the growth of the Islamic capital market in Indonesia has increased quite significantly. The Millennial generation is now looking for and trying to start investing. The millennial generation has the highest rate of unemployment of any generation in history. Keywords: investment knowledge, capital market, millennial generation

Analysis on Relationship between Accurate Poverty Alleviation and Stock Price Collapse Risk from the Perspective of Information Disclosure

Accurate poverty alleviation (APA) is crucial to building a well-off society in an all-round way. Companies and the capital market are implementers of APA. In the context of stock price collapse risk (SPCR), this paper verifies whether the APA by state-owned listed enterprises (SOLEs) could effectively suppress SPCR. Empirical results show that SOLEs engaging in APA and investing heavily in APA have a relatively low SPCR. This conclusion holds after the control of robustness and endogenous factors. Information disclosure system mediates the effect of APA on SPCR. Besides, APA suppresses SPCR more significantly in central state-owned enterprises (SOEs) and public welfare SOEs. Further analysis indicates that good institutional environment, strong poverty alleviation pressure, poverty experience of executives, and model of party organization governance can effectively enhance the influence of APA on SPCR. The research results suggest that SOLEs actively engaging in APA can effectively suppress SPCR by disclosing APA information. This is an organic manifestation of APA effectiveness in the capital market.

GENESIS OF THE GENDER SENSITIVE INVESTMENT IN THE GLOBAL CAPITAL FLOW

The concept of global investments has been characterized through diverse approaches in different classical and neoclassical schools of thought. As of today, the most common concepts in understanding global capital flow altogether and global investments as its part needs an urgent update. Due to a major shift in the communication patterns, the generation gap between the now retiring Baby boomers and Gen X and the newcomers Gen Y and Gen Z and their values being the main driver of change, as well as the most rapid digital transformation the world has ever seen, the theoretical groundwork to understanding the global capital flow and investments needs to be revised. This article aims to analyse the fundamental theoretical work on genesis of the term investment in the global capital flow. The author guides through the brief history of the evolution of investment and gives an overview of the most prominent concepts of the movement and regulation of foreign direct investments throughout the Ukrainian and global economic thought. The article considers different approaches and methods that have been applied to understand investments in its traditional meaning, as well as the reasons to existing of several approaches. The main five hypothesis are mentioned, which are believed to classify the motion and regulation of the global capital flow. The main components and functions of the global capital market are summarized and such categories as the depth of the capital market are explained. The article points to the problem of the asym-metry and biases inside the capital market. The author explains reasons for development of novice ideas in the economic thought due to an urgent need of redesigning economic processes based on the self­identification of an individual and their internal motives for economic decision­making. The current trend of implementing social responsibilities throughout the investment process is also mentioned in the publication. The article gives a prognosis of the future transformations and adaptations of the global capital flow due to the change in generations to the merit of digitalization and inclusiveness, as well as gender balance.Keywords: global investments, gender sensitive investment, global capital flow, concepts, digital transformation, inclusion, self­identification. Статтю присвячено дослідженню теоретичних основ формування поняття інвестицій у міжнародному русі капіталу. Досліджено течії, у рамках яких сформовано найбільш відомі концепції руху та регулювання прямих іноземних інвестицій як у межах вітчизняної, так і світової економічної думки. Проведено аналізування підходів та методів різних теоретичних шкіл до тлумачення інвестицій у традиційному поданні. Наведено причини виокремлення нових та новітніх течій економічної думки, які покликані переосмислити економічні процеси, спираючись на процеси самоідентифікації людини та її внутрішні мотиви до прийняття економічних рішень. Розглянуто найбільш поширені поточні нові критерії оцінки інвестиційного процесу. Запропоновано прогноз трансформації та адаптації міжнародного ринку капіталу за рахунок зміни поколінь на користь цифровізації та інклюзивності, ґендерного балансу. Ключові слова: міжнародні інвестиції, ґендерно чутливе інвестування, міжнародних рух капіталу, концепції, цифрова трансформація, інклюзивність, самоідентифікація.