Political Risk and Stock Returns in Indonesia
Journal: Journal of Finance and Banking Review (JFBR) (Vol.2, No. 3)Publication Date: 2017-07-29
Authors : Paulina Yuritha Amtiran; Rina Indiastuti;
Page : 8-13
Keywords : BEI; Market Capitalization; Market Returns; Political Risk; Stock Returns;
- Political Risk and Stock Returns in Indonesia
- The Impact of Global Economic Slowdown and Financial Performance of Banks on Stock Returns in Indonesia Stock Exchange
- Measuring Financial Risk in Stock Returns: A Case of Nairobi Stock Exchange
- Analysis the Impact of Macroeconomic on Financial Performance and Stock Returns of State-Owned Banks in Indonesia Stock Exchange 2006-2016
- Analysis the Effect of Macro-Economic and Financial Performance on Stock Returns on the Indonesia Stock Exchange: Evidence from Selected Stocks in the Mining Sector
Abstract
Objective – The research aims to find the relationship between the political risk with stock returns. Methodology/Technique – Using the purposive sampling, secondary data on 30 companies listed in Indonesia Stock Exchange (BEI) of the year 2007-2015. Analysis technique used is weighted least square regression Findings – The results of study Political risks significantly positively associated with stock returns. These results imply a change from the shock of political risk will affect cost of capital of the company increased, causing the company's stock price will go up which in the end impact on improving the company's stock returns obtained. Novelty – The study implies Shock due to the change of political risk has a direct impact on the company's financial condition primarily of the cost of capital companies because it involves policy and investment decisions are made in Indonesia. Type of Paper: Empirical
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Last modified: 2017-07-28 19:40:41