How the Jakarta Stock Exchange Reacts to Information: A Speed of Adjustment Coefficients Study in a Thin Trading Market

2006 ◽  
Author(s):  
Yessy A. Peranginangin
Keyword(s):  
Stock Exchange ◽  
Speed Of Adjustment ◽  
Trading Market

scholarly journals The Heterogeneity of Speed of Adjustment Capital Structure Across Industrial Sectors

2021 ◽  
Vol 10 (1) ◽  
pp. 103-114
Author(s):  
Bibit Robiatun ◽  
Rini Setyo Witiastuti
Keyword(s):  
Capital Structure ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Partial Adjustment ◽  
Speed Of Adjustment ◽  
Basic Industry ◽  
Industrial Sectors ◽  
Partial Adjustment Model ◽  
Firm Characteristic

This study aims to analyze heterogeneity of speed of adjustment on basic industry, consumer goods, and misceleeneous companies. The population in this study uses basic industry, consumer goods, and miscellenoeus companies listed on the Indonesia Stock Exchange in 2009-2018 period. The method of determining the sample using a pusposive sampling technique based on criteries determined by researchers. We employ two-step partial adjustment model and use measure of book leverage and firm characteristic; profitability, size, tangibility, and growth which has an influence leverage target to estimate speed of adjustment. For three industries, there is evidence of heterogeneity of speef adjustment. The result showed that speed of adjustment 24% of basic industry, 37.1% of consumer goods, and 27.3% of miscellaneous industry.

scholarly journals PENCAPAIAN TARGET LEVERAGE MELALUI SPEED OF ADJUSTMENT KARAKTERISTIK PERUSAHAAN

2019 ◽  
Vol 1 (2) ◽  
pp. 131-140
Author(s):  
Yasir Maulana ◽  
Ayus Ahmad Yusuf
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Stock Exchange ◽  
Company Size ◽  
Construction Sector ◽  
Speed Of Adjustment ◽  
Growth Industry ◽  
Company Growth ◽  
Target Leverage ◽  
Dynamic Capital Structure

This paper aims to determine the effect of company characteristics on target leverage with the relation of the speed of adjustment to target leverage. The speed of adjustment is examined to complete the analysis of the concept of dynamic capital structure in Indonesia. The characteristics of the companies studied are profitability, company size, company growth, industry, tangibility, inflation and the deficit and financial surplus of companies in the property, real estate and construction sectors listed on the Indonesia Stock Exchange in 2008 to 2015. The results of this study show that property, real estate, and construction sector companies are significantly implementing leverage targets. The data also shows that there is a significant effect of speed of adjustment to the leverage target which is faster when the company has a financial surplus compared to when the financial deficit.

Liquidity and Profitability: A Co-Integration Study

2018 ◽  
Vol 21 (02) ◽  
pp. 1850011
Author(s):  
Khairul Alom
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Response Analysis ◽  
Causality Test ◽  
Speed Of Adjustment ◽  
Financial Firms ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run

This paper examines the relationship between liquidity and profitability of the non-financial firms listed in Dhaka Stock Exchange (DSE) for the period of 1998–2013. Pedroni and Johansen co-integration results show that liquidity, profitability, firm size and long-term debt (LTD) have significant co-integration relationship in the long run. The causality test results expose that a strong bidirectional casual relationship exist among the variables of liquidity and profitability, LTD and liquidity profitability and firm size in the short run. Also, there exists unidirectional causality among the variables of firm size and liquidity, profitability and LTD in the short run. Furthermore, Pooled Mean Group results show that profitability, firm size and LTD have long-run co-integration relationship with liquidity. However, in the short run, profitability and LTD significantly contribute to the liquidity and the error correction mechanism shows that speed of adjustment to equilibrium is significant within the year. Impulse response analysis indicates shocks in the firm size, LTD and profitability have positive and significant impact on liquidity.

scholarly journals Microeconomics and raw material price on capital structure adjustment through dynamic target in Indonesian textile industries

Accounting ◽  
2021 ◽  
pp. 231-238
Author(s):  
Sunita Dasman ◽  
Erie Febrian ◽  
Sulaeman Nidar ◽  
Aldrin Herwany
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Raw Material ◽  
Company Size ◽  
Speed Of Adjustment ◽  
Growth Opportunity ◽  
Structure Adjustment ◽  
Dynamic Target ◽  
Textile Industries ◽  
Retained Earnings

This study aims to examine the effects of company-specific macroeconomic fluctuation in raw materials prices on the speed of adjustment through dynamic targeting capital structure on textile companies listed on the Indonesia Stock Exchange during 2012 and the second quarter of 2020. Using panel data regression of the fixed-effect method, we discovered that the speed of adjustment varies in each industry and period. Textile companies listed on the Indonesia Stock Exchange adjust their capital structure through a dynamic target of 53.3% per year. It takes 1 year and 10 months to close the target capital structure. The factors that determine the target capital structure include company size, tangibility, liquidity and growth opportunity, asset utilization, as well as retained earnings. On the other side, factors that contribute to the speed of adjustment include company size, growth opportunity, earnings volatility, asset utilization, retained earnings, distance to the target, and economic growth. Other factors that also affect the speed of adjustment include fluctuations in the prices of cotton and crude oil. The result of this study is expected to provide an optimal capital structure formulation to the textile industries in Indonesia to finance companies’ operational activities and growth opportunities effectively. This study also provides an overview of how textile companies make capital structure adjustment, as there are changes in company-specific factors, macroeconomic conditions, and fluctuation in raw material prices.

scholarly journals The impact of the coronavirus pandemic on the dividend target payout ratio. The evidence from Hydrotor SA

2021 ◽  
Vol 51 (3) ◽  
pp. 15-28
Author(s):  
Mieczysław Kowerski ◽  
Marcin Sowa
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Current Situation ◽  
Good Tool ◽  
Partial Adjustment ◽  
Speed Of Adjustment ◽  
Partial Adjustment Model ◽  
Warsaw Stock Exchange ◽  
The Impact

Lintner’s (1956) partial adjustment model identifies the company’s long-term dividend policy by setting a dividend target payout ratio and the speed of adjustment. And although the model has undergone various modifications and methods of estimation over more than 60 years, it is still a good tool for analyzing dividend decisions made by companies. The aim of the article is to show the usefulness of the Lintner model for analyzing changes in the company’s dividend policy during the pandemic turmoil. For the illustration, Hydrotor SA was chosen, which, the longest time at the Warsaw Stock Exchange, continuously pays dividends. The calculations showed that the situation in 2020 resulted in a revision of the company’s long-term dividend strategy, which resulted in a lowering of the dividend target payout ratio and a greater attention to the current situation (current net profits)—an increase in the speed of adjustment.  

scholarly journals Pengembangan Kompetensi Mahasiswa Melalui Pelatihan Magang Online Saat Pandemi Covid 19

2021 ◽  
Vol 3 (1) ◽  
pp. 10-18
Author(s):  
Lucky Radi Rinandiyana ◽  
Tine Badriatin ◽  
Noneng Masitoh ◽  
Andri Helmi Munawar ◽  
Rini Muflihah ◽  
...  
Keyword(s):  
Capital Market ◽  
Financial Services ◽  
Stock Exchange ◽  
Rotating System ◽  
Trading System ◽  
Stock Trading ◽  
Apprenticeship Training ◽  
Trading Market ◽  
The City ◽  
Student Competencies

This activity is carried out in collaboration with 3 Universities in the City of Tasikmalaya with the Financial Services Institution in the Capital Market to develop student competencies through an apprenticeship training program. This activity is carried out for 30 working days starting from February 2021 to March 2021 with a rotating system considering the training period during the Covid 19 pandemic. Internships are carried out online and once a week carried out offline with a rotating system to avoid crowds and maintain health protocols. With this work apprenticeship, it is hoped that students participating in the apprenticeship who are final year students can prepare themselves in the real world of work after graduating from college, where apprenticeships are also expected to be able to apply the theories obtained during college to be able to apply them in companies or institutions where they work. This activity is carried out with assistance from lecturers and tutors from the company. The implementation of this internship resulted in participants being able to learn firsthand the stock trading system at the Indonesia Stock Exchange with direct supervision of the trading market and be able to see how the marketing administration of opening a share account.

scholarly journals The impact of financial constraints on inventory investment: Empirical evidence from Jordan

2016 ◽  
Vol 6 (4) ◽  
pp. 494-502
Author(s):  
Mohammad Gharaibeh ◽  
Ziad Mohammad Zurigat ◽  
Ra’d Ananbeh
Keyword(s):  
Financial Constraints ◽  
Stock Exchange ◽  
Inventory Level ◽  
Target Level ◽  
Industrial Firms ◽  
Speed Of Adjustment ◽  
Inventory Investment ◽  
Amman Stock Exchange ◽  
Inventory Holding ◽  
The Impact

This study aims at investigating whether Jordanian industrial firms have a target inventory level, and how fast they move toward it when any deviation exists. In addition, it investigates whether the financial constraints have an impact on inventory investment related to the target level, and the speed of adjustment. Using the panel data for a sample of 50 industrial firms listed on the Amman Stock Exchange (ASE) over the period (2001-2014). The empirical results suggest that Jordanian industrial firms have a target inventory level. However, Jordanian industrial firms adjust their actual inventory holding to their target level slower than their counterparts in developed and developing countries. Moreover, the results show that the financial constraint do affect inversely the adjustment speed, and makes the financially constrained firms reduce their level of inventory beyond the target level by more than others.

Sign in / Sign up

Export Citation Format

Share Document