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.
Stock return is the level of profit obtained by investors from the results of investment decisions in stocks. Stock returns are influenced by various types of factors, both internal and external to the company. This study uses the characteristics of the company or the company's internal factors, including company size, profitability, leverage, and liquidity. The company's characteristics are used to analyze the ability to manage the company's assets and liabilities and their effect on stock returns. This study also analyzes investors' attention, which indicates the number of searches for the company's ticker symbol on the Google Search engine. This study is a quantitative study on companies listed on the Jakarta Islamic Index. The sample is determined using the purposive sampling technique and then a sample of ten companies that fit the criteria are obtained. Panel data regression is used to analyze the effect of company characteristics and Google search on stock returns. The results showed that company size, profitability, and company liquidity positively affected stock returns. Meanwhile, leverage and Google search do not affect the company's stock returns.
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