Determinants of Systematic Risk of Banking Sector in Indonesia Stock Exchange
Journal Title: GATR Global Journal of Business & Social Science Review - Year 2015, Vol 3, Issue 2
Abstract
Objective - Basically the purpose of the company is to add value and maximize the wealth of shareholders. The added value of the company is reflected in the price of shares traded in the capital market. Stock prices higher than the rate of return obtained will be high-risk is also high, the stock price lower than the rate of return and low risk will be obtained. Risk is one factor that should be considered by the company. Systematic risk is the risk that cannot be diversified by the company. Therefore, companies must be able to know the determinants of the systematic risk in the company. The banking sector is one sector that is directly related to systematic risk. Methodology/Technique - Sampling techniques by purposive sampling of the banks listed on the Indonesia Stock Exchange, from as many as 42 banks listed on the Indonesia Stock Exchange in accordance with the criteria as many as 31 banks. Technical analysis of the data conducted by data pool regression analysis. Findings - The analysis of data on the banking sector beta is found that the beta value of the entire bank listed on the Indonesian Stock Exchange is under one it indicates that the banking sector is not unduly influenced by changes in market conditions. Novelty - The research use combine financial ratio variable and macroeconomic variable
Authors and Affiliations
Paulina Yuritha Amtiran, Rina Indiastuti, Sulaeman Rahman Nidar, Dian Masyita
Keywords
Related Articles
- EP ID EP185131
- DOI -
- Views 125
- Downloads 0
The Coverage of Islam/Muslims and Terrorism in International Media
Objective - In portraying Islam, especially after the September 11 attacks, a number of studies found that terrorism has been repeatedly associated with Islam/Muslims by most of the international media. There is a percep...
Education Performance and the Determinants of Secondary School Enrolment in Indonesia
Objective – The development in education sector as one form of human capital development has been implemented in Indonesia. Some government programs have been attempted as an alternative solution to improve the quality o...
A Study on Factors of Web Users Behaviour towards Online Purchasing Intention among People in Jakarta
Objective - The success of e-commerce depends on the numbers that is taken into consideration. At the customer side, the trend of online shopping triggers more people to do purchase by online and it also reflect on the b...
Forms of Acknowledgement of Debt in Malaysia: The Legal Implications
Objective - The purpose of the paper is to discuss different forms or methods of acknowledging debt by the debtor. The paper analysis laws and cases decided by the Malaysian courts. Methodology/Technique - The methodolo...
Market Segmentation of Organ Donors in Malaysia: A Systematic Literature Review
Objective- The objectives of this paper are to determine bases in segmenting organ donors and to examine potential variables that could be used to segment and target potential organ donors. Methodology/Technique To unde...