Central Bank Intervention and Stock Market Response

Hsu, Ai-Chi; Utami, Fiesty

doi:10.20469/ijbas.2.10005-5

Cited by 4 publications

(2 citation statements)

References 4 publications

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“…This has also been supported by Jensen (1986) research that it states the companies which with surplus free cash low and less positive investment opportunity will have issues on the agency cost; therefore, share repurchase is a method to help minimize the agency cost. The most popular theory about the 'buyback' phenomenon (share repurchase/stock repurchases) is the Signaling theory (Bharucha, 2016;Hsu & Utami, 2016;Lie, 2005;Peyer & Vermaelen, 2008). The managers have to announce that in a positive perspective the shares are undervalued, and the free cash low prescribes the distribution of cash-low to shareholders for stock repurchases instead of using it in inef icient projects (Grullon & Michaely, 2004).…”

Section: Free Cash Flow Toward Stock Repurchasesmentioning

confidence: 99%

The influence of undervaluation, free cash flow, leverage and dispersion of ownerships toward company’s stock repurchase (An empirical study of Indonesia stock exchange public listed companies)

2017

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The objective of this research is to study the in luence of undervaluation, free cash low, leverage and dispersion of ownerships toward company's stock repurchase (An empirical study of Indonesia stock exchange public listed companies). Many researchers have shown that the Stock repurchase is the best alternativ for the company to recover the decrease of stock value by doing 'buyback' of the stock from the market which is mostly caused by the negative sentiment, especially during the crisis. The research methodology approach has used 26 samples of manufacturing companies by using a purposive sampling method which means its sampling technique is based on the 'sample criteria'. Samples are from the public listed companies which are listed on Indonesia Stock Exchange (IDX) during the period of 2010-2014. The major criterion is that companies are consistently publishing their stock repurchase announcement. In order to conduct the hypothesis test, it used a multiple linear regression analysis to analyze the in luence of independent variables undervaluation, free cash low, leverage and dispersion of ownerships toward stock repurchase. The indings show that R-Square amount is 0.783, which means that the independent variables have in luences of 78.3% toward its dependent variable. And, F-test shows the signi icant simultaneous impact of undervaluation, free cash low, leverage and dispersion of ownerships toward company's stock repurchase. And, as per t-test only leverage, and dispersion of ownerships have a partial in luence toward company's stock repurchase. Undervaluation, and free cash low show negative and above signi icant level of (α), or more than the con idence level of 95%. This study may contribute to providing an overview of the factors of undervaluation, and free cash low ownerships toward company's stock repurchase in Indonesia which can be used by the managers and shareholders decision-making and also supporting the best fundamental preparation on stock repurchase.

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Section: Free Cash Flow Toward Stock Repurchasesmentioning

confidence: 99%

The influence of undervaluation, free cash flow, leverage and dispersion of ownerships toward company’s stock repurchase (An empirical study of Indonesia stock exchange public listed companies)

2017

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“…The Institute for Supply Management (ISM) prepares a report every month based on the answer to the questionnaire, which is sent to the managers of supply chain department and business executives where they are asked questions about the condition of new orders, level of inventories, production, supplier deliveries and condition of employment in the 􀅫irms. PMI is considered as a very renowned 􀅫iscal indicator that obtains the regular attention of the media, policymakers and other bodies who wish to get privilege in forecasting actual 􀅫iscal movements (Hsu & Utami, 2016;Kinata, 2016;Lahiri & Monokroussos, 2013). Harris et al (1991) also marked it as a sensitive index for 􀅫inancial markets.…”

Section: Introductionmentioning

confidence: 99%

Impact of manufacturing PMI on stock market index: A study on Turkey

Yanik¹,

Osman²,

Öztürk³

2020

J. adm. bus. stud.

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Purchasing Managers' Index (PMI) is an indicator to measure the health of an economy. PMI is considered by policymakers and related bodies as it is an in􀅫luential indicator for gauging the general tendency of the economy, especially GDP growth and Industrial Added Value. This study examines whether the manufacturing PMI has any in􀅫luence on the stock market of Turkey or vice versa. We use the secondary sources of information collected from the of􀅫icial website of BIST, Turkey for Stock Index data and "investing.com" for Manufacturing PMI data. The study covers monthly data ranging from April 2015 to February 2019. We test the causality between Manufacturing PMI and BIST index by employing the Granger Causality Test. Our analysis reveals that manufacturing PMI does not granger cause the Turkish Stock Index but the Turkish Stock index or the stock market does granger cause manufacturing PMI. This study is the 􀅫irst attempt by the authors, which covers data of manufacturing PMI from April 2015 to February 2019 as no further data is available to be dealt with.

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The Influence of Liquidity and Profitability Toward Share Price: Mediated Effect of Hedging (Evidences From Shares of Lq-45 Listed in Indonesian Stock Exchange for Period of 2011 to 2015)

Sitorus

Pardede

Ardi

2019

HSSR

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Purpose: This study aims at investigating and testing the mediated effect of Hedging on the effect of profitability and liquidity toward share price at shares of LQ-45, listed in Indonesian Stock Exchange from2011 to 2015. The current research was conducted because the phenomenon and the fluctuations in price of shares were unavoidable. Methodology: The Structural Equation Modelling (SEM) by Amos was used to analyze the 110 observations of data. Main Findings: The result of analysis shows that; (1) the liquidity gives not significantly negative influence to share price, (2) the liquidity gives significantly negative influence to hedging, (3) the profitability gives significantly positive influence to share price, (4) the profitability gives significantly negative influence to hedging, (5). Hedging gives significantly positive influence to share price. Implications/Applications: The present study provides new evidence that the mediated effect of Hedging on the influence of liquidity and profitability toward share price has more strength compared to the direct influence of liquidity but not for profitability.

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Central Bank Intervention and Stock Market Response

Cited by 4 publications

References 4 publications

The influence of undervaluation, free cash flow, leverage and dispersion of ownerships toward company’s stock repurchase (An empirical study of Indonesia stock exchange public listed companies)

The influence of undervaluation, free cash flow, leverage and dispersion of ownerships toward company’s stock repurchase (An empirical study of Indonesia stock exchange public listed companies)

Impact of manufacturing PMI on stock market index: A study on Turkey

The Influence of Liquidity and Profitability Toward Share Price: Mediated Effect of Hedging (Evidences From Shares of Lq-45 Listed in Indonesian Stock Exchange for Period of 2011 to 2015)

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