Determinants of Indonesian corporate bond yield

Nicodemus Simu,

Business and Economic Horizons (BEH), 2017, vol. 13, issue 5, 619-629

Abstract: Bonds are securities instruments quite attractive for investors. There are many factors that investors consider when going to invest in bonds market. A number of recents studies indicate that yield is one of the most commonly factors considered by investors. This study aims to identify the various factors that affect bond yields, as well as to explain the mechanisms by which each factors influence yields. The methodology of the research is to analyze secondary data available in Indonesian Bond Market Directory for the period of January 2015 - July 2016. Some statistic tools were used to analyze and interpret data, such as multiple linear regression analysis, coefficient of determination, and analysis of variance, and hypothesis testing using t-test. Based on data compiled from 67 companies and 138 bonds shows that bond maturity and coupon rate have a significant positive effect on bond yield. Instead, issuer's rating has a significant negative effect on bond yield. While on the other hand, liquidity does not give significant influence to bond yield. Key words: Yield, liquidity, maturity, coupon rate, rating

Keywords: Ukraine; social capital; economic growth; post-revolution performance; corruption (search for similar items in EconPapers)
JEL-codes: G12 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pdc:jrnbeh:v:13:y:2017:i:5:p:619-629

DOI: 10.15208/beh.2017.42

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