Do Personal Taxes Affect Investment Decisions and Stock Returns?

2020 ◽  
Author(s):  
Alexander P. Kontoghiorghes
Keyword(s):  
Stock Returns ◽  
Investment Decisions ◽  
Personal Taxes

scholarly journals ANALISIS PORTOFOLIO SEBAGAI DASAR PENGAMBILAN KEPUTUSAN INVESTASI SAHAM YANG TERDAFTAR DI BEI

IQTISHODUNA ◽  
2013 ◽  
Author(s):  
Sri Yati
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Analytical Method ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Portfolio Analysis ◽  
Rate Of Return ◽  
Expected Returns ◽  
Risk Level ◽  
Expected Return

This study aims to analyze rate of return and risk as the tools to form the portfolio analysis on 15 the most actives stocks listed in Indonesian Stock Exchange. Descriptive analytical method is used to describe the correlation between three variables: stock returns, expected returns of stock market, and beta in order to measure the risk of stocks to help the investors in making the investment decisions. The research materials are 15 the most actives stocks listed in Indonesian Stock Exchange during 2008-2009. The results show that PT. Astra International Tbk. has the highest average expected return of individual stock (Ri) of 308,3355685, while PT. Perusahaan Gas Negara Tbk. has the lowest of -477,0827847. The average expected return of stock market (Rm) is 0,00247163. PT. Astra International Tbk. has the highest systematic risk level of 20229,14205, while the lowest of -147,5793279 is PT. Kalbe Farma Tbk. Furthermore, the results also indicate that there are 9 stocks can be combined to form optimal portfolio because they have positive expected returns.

R&D investment decisions of IPO firms and long-term future performance

2018 ◽  
Vol 17 (1) ◽  
pp. 78-108 ◽  
Author(s):  
Tatiana Fedyk ◽  
Natalya Khimich
Keyword(s):  
Stock Returns ◽  
Initial Public Offering ◽  
Investment Decision ◽  
Investment Decisions ◽  
Poor Performance ◽  
Net Income ◽  
Cross Sectional ◽  
Content Type ◽  
Public Offering ◽  
D Investment

Purpose The purpose of this paper is to link valuation of different accounting items to research and development (R&D) investment decisions and investigate how suboptimal R&D choices during initial public offering (IPO) are linked to future operating and market underperformance. Design/methodology/approach For firms with substantial growth opportunities, accounting net income is a poor measure of the firm’s performance (Smith and Watts, 1992). Therefore, other metrics such as R&D intensity are used by investors to evaluate firms’ performance. This leads to a coexistence of two strategies: if earnings are the main value driver, firms tend to underinvest in R&D; and if R&D expenditures are the main value driver, firms tend to overinvest in R&D. Findings The authors show that the R&D investment decision varies systematically with cross-sectional characteristics: firms that are at the growth stage, unprofitable or belong to science-driven industries are more likely to overinvest, while firms that are able to avoid losses by decreasing R&D expenditure are more likely to underinvest. Finally, they find that R&D overinvestment leads to future underperformance as evidenced by poor operating return on assets, lower product market share, higher frequency of delisting due to poor performance and negative abnormal stock returns. Originality/value While prior literature concentrates on R&D underinvestment as a tool of reporting higher net income, the authors demonstrate the existence of an alternative strategy used by many IPO firms – R&D overinvestment.

scholarly journals The Phenomenon of the Month of Sela in the Indonesian Capital Market

2020 ◽  
Vol 12 (1) ◽  
pp. 65
Author(s):  
Arini Putri Helanda ◽  
Ani Wilujeng Suryani
Keyword(s):  
Stock Returns ◽  
Capital Market ◽  
Price Index ◽  
Composite Index ◽  
Abnormal Returns ◽  
Investment Decisions ◽  
Market Inefficiency ◽  
New Knowledge ◽  
The Mean ◽  
The Garch Model

Seasonal anomalies cause market inefficiency by affecting the mean and volatility of stock returns, and allow investors to obtain abnormal returns. In Indonesia, there is the month of Sela which is believed as an unlucky month so that many people avoid this month to hold ceremonial activities. As a result, the economy declines in the month of Sela and possibly, the return will also drop in this month. Therefore, this research aims to reveal whether the month of Sela is a seasonal anomaly. This research tested two hypotheses; the effect of the mean and volatility of price index return by using the GARCH model. To examine the effect of the month of Sela on the mean and volatility of return of price index, we collected the data on Indonesian Composite Index and 10 sectoral indices from 2009 to 2019 on three Javanese months, Sawal, Selo and Besar. In total, we collected 7.095 returns data. The month of Sela was a seasonal anomaly that the average and volatility of returns during the month of Sela were lower than those during the months of Sawal and Besar. These results also indicated that during the months of Sawal and Besar, the price index was more volatile than it was during the month of Sela. This research is useful for investors in considering their investment decisions to obtain an abnormal return. This research also contributes to the literature by adding new knowledge about seasonal anomalies that exist in Indonesia.

scholarly journals Strengthen the Impact of CSR Information and Audit Quality on Investment Decisions: The Role of Good Corporate Governance in ASEAN Countries

2021 ◽  
Author(s):  
Istianingsih Istianingsih ◽  
Vidiyanna Rizal Putri ◽  
Marissa Grace Haque
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Audit Quality ◽  
Investment Decisions ◽  
Successful Implementation ◽  
Good Corporate Governance ◽  
Abnormal Stock Returns ◽  
Csr Disclosure ◽  
The Impact

This research contributes to the development of theories regarding the relationship between Corporate Social Responsibility (CSR) and investment decisions. Acquisition of stock returns that exceed normal predictions depends on the successful implementation of Good Corporate Governance (GCG). This study aims to examine investors' reactions to information on CSR disclosure in several countries that are members of the Association of Southeast Asian Nations (ASEAN). Furthermore, this study also examines the role of implementing GCG in strengthening the impact of CSR disclosure on investor relations as measured by abnormal stock returns. The sampling technique used was purposive Sampling. The research was conducted on Manufacturing Companies in countries that are members of ASEAN during 2017-2019. The estimation model used to analyze data is a multiple regression model. The results showed that CSR information was able to increase investors' positive reactions. Meanwhile, GCG practice is proven to strengthen the impact of CSR information on investment decisions. Other variables involved in this study, namely audit quality, company size, debt level, and sales growth, are not proven to influence abnormal stock returns.

Asymmetric Timeliness and the Resolution of Investor Disagreement and Uncertainty at Earnings Announcements

2019 ◽  
Vol 95 (4) ◽  
pp. 23-50 ◽  
Author(s):  
Mary E. Barth ◽  
Wayne R. Landsman ◽  
Vivek Raval ◽  
Sean Wang
Keyword(s):  
Stock Returns ◽  
Earnings Announcements ◽  
Investment Decisions ◽  
Bad News ◽  
Positive Relation ◽  
Potential Cost ◽  
Earnings Announcement ◽  
Asymmetric Timeliness ◽  
Valuation Uncertainty ◽  
Investor Disagreement

ABSTRACT This study finds that greater asymmetric timeliness of earnings in reflecting good and bad news is associated with slower resolution of investor disagreement and uncertainty at earnings announcements. These findings indicate that a potential cost of asymmetric timeliness is added complexity from requiring investors to disaggregate earnings into good and bad news components to assess the implications of the earnings announcement for their investment decisions. Such a disaggregation impedes the speed with which investor disagreement and uncertainty resolve. The findings indicate that asymmetric timeliness also delays price discovery at earnings announcements. We also find a positive relation between asymmetric timeliness and stock returns during the earnings announcement period after the initial price reaction to the announcement, which is consistent with resolution of valuation uncertainty. However, we do not find clear evidence of more net stock purchases during this period by insiders of firms with greater asymmetric timeliness. JEL Classifications: M41; G14.

scholarly journals The Impact of Financial Leverage on the Variance of Stock Returns

2019 ◽  
Vol 7 (1) ◽  
pp. 14 ◽  
Author(s):  
David Aharon ◽  
Yossi Yagil
Keyword(s):  
Stock Returns ◽  
Coefficient Of Determination ◽  
Accurate Approximation ◽  
Financial Leverage ◽  
Industrial Firms ◽  
Theoretical Relationship ◽  
Personal Taxes ◽  
The Impact ◽  
The Relationship

This paper investigates the direct theoretical relationship between the variance of stock returns (σ2E) and financial leverage (L) considering both corporate and personal taxes. Using a dataset of U.S. industrial firms, we examine the variance of stock returns as a function of the firm’s financial leverage. We demonstrate that (1) the variance of stock returns is positively related to the firm’s financial leverage, (2) the relationship between the variance of stock returns and financial leverage is positive when corporate and personal taxes are also considered, and (3) with regard to the relationship between the variance of stock returns and financial leverage, using market measures of the latter tends to generate a higher coefficient of determination and a more accurate approximation of the theoretical relationship between financial leverage and the variance of stock returns.

scholarly journals Causality Test Inflation and Stock Return in Indonesia Stock Exchange

2018 ◽  
Vol 9 (1) ◽  
pp. 29-51
Author(s):  
Ready Prima Dudesy
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Composite Index ◽  
Investment Decisions ◽  
Causality Test ◽  
Agriculture Sector ◽  
Industry Sector ◽  
Basic Industry

Investors can see the inflation rate as one of the basic investment decisions. The inflation rate has affected stock returns in overseas studies with diverse directions. Further research is important to provide an overview of the effect of Indonesia's inflation rate and stock returns that are useful for analyst to predict macroeconomic conditions as well as investment decisions. This study aims to identify the relationships between inflation and stock return in Indonesia’s Stock Exchange and identify the effect of inflationary shock to stock returns in Indonesia’s Stock Exchange. The research method used in this study are Vector Autoregression and Granger causality/Wald exogeneity block test. The result showed that Indonesia's inflation rate did not significantly affect stock returns, but when the analysis proceeded more specifically into sectoral stock returns, it was seen that Indonesia's inflation rate has significantly affected the stock returns of Basic Industry sector and Infrastructure sector. Inflation rate shocks was responded negatively by the sectors. Further findings were the causality relationship between the inflation rate of Indonesia and the stock return of Basic sector. The return of Jakarta Composite Index affected the inflation rate of Indonesia. Specific sectors that have influenced inflation rate were Agriculture sector, Basic Industry sector and Financial sector.

scholarly journals Investment sensitivity and managerial decision making behaviour of Indian firms

2013 ◽  
Vol 61 (7) ◽  
pp. 2157-2162
Author(s):  
Pankaj Kumar Gupta ◽  
Jasjit Bhatia
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Information Structure ◽  
Imperfect Information ◽  
Investment Decisions ◽  
Theoretical Models ◽  
Cash Flows ◽  
Agency Conflicts ◽  
Managerial Decision ◽  
Future Cash Flows

Contemporary models of the financial theory support the proposition that the stock prices should be fundamentally a reflection of the discounted value of earnings. Accordingly the investors and analysts should base their expectations on the expected future cash flows that are logically correlated or have a carry over effect vis-ŕ-vis present stream of cash flows. This logically implies that the managers would have an incentive to manipulate investor’s expectation of future cash flows. The zeal to maximize the firm’s value based on market capitalization is expected to have a detrimental effect on the investment decisions leading to sub optimality. Given the imperfect information structure and market pressures, the Indian firms suffer from mispricing and as such the conventional robust theoretical models of agency conflicts cannot be refuted. This motivates us to examine the interrelation ship between the concerns for valuation and investment sensitivity. We use a sample statistics of selected listed firms that represent the CNX Nifty Index and test for the dependence of the investment behavior of the firm, on the sensitivity of the firms’ share prices to its current cash flow represented by surprise earings. We use the earnings response coefficient (ERC) framework proposed by Ball and Brown (1968) for 11 key industries in India. We find that the surpise in accounting earnings announcements is negatively associated with abnormal stock returns and the investment decisions taken by the firms are negatively sensitive to changes in investment opportunities.

scholarly journals Investor Sentiment and Stock Returns During the COVID-19 Pandemic

2021 ◽  
Vol 12 ◽  
Author(s):  
Baozhen Jiang ◽  
Haojie Zhu ◽  
Jinhua Zhang ◽  
Cheng Yan ◽  
Rui Shen
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Investor Sentiment ◽  
Investment Decisions ◽  
Reference Value ◽  
Forecast Model ◽  
Extended Model ◽  
Stock Market Volatility ◽  
Benchmark Model ◽  
Better Than

In this paper, we regard the Baidu index as an indicator of investors' attention to China's epidemic stocks. We believe that when seeking information to guide investment decisions, investor sentiment is usually affected by the information provided by the Baidu search engine, which may cause stock prices to fluctuate. Therefore, we constructed a GARCH extended model including the Baidu index to predict the return of epidemic stocks and compared it with the benchmark model. The empirical research in this paper finds that the forecast model including the Baidu index is significantly better than the benchmark model. This has important reference value both for investors in predicting stock trends and for the government's formulation of policies to prevent excessive stock market volatility.

scholarly journals ANALISIS SUKU BUNGA, KURS DAN INFLASI TERHADAP RETURN SAHAM BLUE CHIP SEKTOR PERBANKAN

2020 ◽  
Vol 3 (1) ◽  
pp. 276-281
Author(s):  
Delia Wijayanti ◽  
Sishadiyati .
Keyword(s):  
Regression Analysis ◽  
Exchange Rates ◽  
Interest Rates ◽  
Stock Returns ◽  
Banking Sector ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Multiple Linear Regression Analysis ◽  
Analysis Models ◽  
Blue Chip

This study aims to analyze the factors that influence stock returns, especially blue chip stocks in the banking sector. The variables used in this study are interest rates, exchange rates and inflation. This research uses a quantitative approach with multiple linear regression analysis models. The results showed that the variable interest rates, exchange rates and inflation affect the blue chip stock returns of the banking sector. But partially, interest rates do not affect the blue chip stock returns of the banking sector while the exchange rate and inflation affect the blue chip stock returns of the banking sector. This research is very useful for investors in making investment decisions, especially in the banking sector.

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