A b s tr a c tBusiness Strategy, Equity Market Competition, Overvalued Equities, and Stock Price Crash Risk. The purpose of this research is to examine the influence of prospector business strategy and defender business strategy, equity market competition, and indirect effect of prospector business strategy on stock price crash risk through ovevalued equities. The sample of this research are 192 companies that are divided into 96 prospector business strategy and 96 defender business strategy during 2010-2016. This study uses a secondary data from financial report, number of investor, and stock price information. Which is obtained from the official website of IDX, KSEI and yahoo finance. The results of this study indicate that the prospector business strategy effect on the stock price crash risk, while the defender business strategy does not affect on stock price crash risk. The equity market competition is proven to reduce the stock price crash risk. The existence of a prospector business strategy will tend to overvalued equities which in turn, increase stock price crash risk.
This study aimed to examine the effect of business strategy of prospector and defender companies on stock price crash risk, test the influenced of equity market competition on stock price crash risk, and test the effect of prospector strategy on stock price crash risk through overvalued equities. The population of this study was manufacturing firms listed on the Indonesia Stock Exchange for seven years of observation. The data analysis used in this research was Path Analysis by using Multiple Linear Regression. The results of this study that the business strategy prospector positively affect the stock price crash risk, while the defender strategy was not affect the stock price crash risk. Companies that implemented business prospector strategies will be faced with higher uncertainty than defender business strategies. In addition, the prospector's business strategy can affect the stock price crash risk through overvalued equities. Companies that implemented business prospector strategies will tend to overvalued equities, which can lead to future stock price crashes. One way reduced to the stock price crash risk is in the presence of equity market competition. The equity market competition had a negative effect on the stock price crash risk, so that a high equity market competition can reduced information asymmetry and minimize the stock price crash risk. ABSTRAKPenelitian ini bertujuan untuk menguji pengaruh strategi bisnis perusahaan prospector dan defender terhadap risiko crash harga saham, menguji pengaruh kompetisi pasar ekuitas terhadap risiko crash saham, dan menguji pengaruh strategi bisnis prospector terhadap risiko crash harga saham melalui overvalued equities. Populasi penelitian ini adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia selama tujuh tahun pengamatan. Analisis data yang digunakan dalam penelitian ini adalah analisis jalur dengan menggunakan regresi linier berganda. Hasil penelitian ini memberikan bukti empiris bahwa strategi bisnis prospector berpengaruh positif terhadap risiko crash harga saham, sedangkan strategi bisnis defender tidak memengaruhi risiko crash harga saham. Perusahaan yang menerapkan strategi bisnis prospector akan menghadapi ketidakpastian yang lebih tinggi daripada strategi bisnis defender. Strategi bisnis prospector dapat memengaruhi risiko crash harga saham melalui overvalued equities. Perusahaan yang menerapkan strategi bisnis prospector akan cenderung mengalami overvalued equities, yang dapat menyebabkan crash harga saham di masa depan. Salah satu cara untuk mengurangi risiko crash harga saham adalah dengan adanya kompetisi pasar ekuitas. Kompetisi pasar ekuitas berpengaruh negatif terhadap risiko crash harga saham, sehingga kompetisi pasar ekuitas yang tinggi dapat mengurangi asimetri informasi dan meminimalkan risiko crash harga saham.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.