Political Risk and Stock Returns in Indonesia

Paulina Yuritha Amtiran ()
Additional contact information
Paulina Yuritha Amtiran: Economic and Business Faculty, Universitas Nusa Cendana, Indonesia Author-2-Name: Rina Indiastuti Author-2-Workplace-Name: Universitas Padjadjaran, Bandung, Indonesia

GATR Journals from Global Academy of Training and Research (GATR) Enterprise

Abstract: "Objective � The research aims to find the relationship between the political risk with stock returns. Methodology/Technique � Using the purposive sampling, secondary data on 30 companies listed in Indonesia Stock Exchange (BEI) of the year 2007-2015. Analysis technique used is weighted least square regression Findings � The results of study Political risks significantly positively associated with stock returns. These results imply a change from the shock of political risk will affect cost of capital of the company increased, causing the company's stock price will go up which in the end impact on improving the company's stock returns obtained. Novelty � The study implies Shock due to the change of political risk has a direct impact on the company's financial condition primarily of the cost of capital companies because it involves policy and investment decisions are made in Indonesia."

Keywords: BEI; Market Capitalization; Market Returns; Political Risk; Stock Returns. (search for similar items in EconPapers)
JEL-codes: G30 G32 (search for similar items in EconPapers)
Pages: 6
Date: 2017-06-21
New Economics Papers: this item is included in nep-cfn, nep-fmk, nep-pol and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Journal of Finance and Banking Review, Volume 2, Issue 3

Downloads: (external link)
http://gatrenterprise.com/GATRJournals/pdf_files/J ... -JFBRVol2(3)2017.pdf (application/pdf)
http://gatrenterprise.com/GATRJournals/online_submission.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gtr:gatrjs:jfbr129

Access Statistics for this paper

More papers in GATR Journals from Global Academy of Training and Research (GATR) Enterprise
Bibliographic data for series maintained by Prof. Dr. Abd Rahim Mohamad ().