Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia

Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia

This study examines the relationship between foreign ownership and return volatility, trading volume, and risk of stocks at the Indonesia Stock Exchange (IDX). Panel data of selected companies listed on the LQ45 index of the IDX was employed for the period between 2011 and 2017. Foreign ownership wa...

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Bibliographic Details
Main Authors: Ahmad Naufa, I Wayan Nuka Lantara
Format: Article
Language:English
Published: Universiti Utara Malaysia 2018-07-01
Series:International Journal of Banking and Finance
Online Access:https://www.scienceopen.com/document?vid=a1edad53-75f9-451b-a6e3-715b584561e1
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spelling doaj-b567544676f0498589b3573c88055dae2021-06-15T13:16:28ZengUniversiti Utara MalaysiaInternational Journal of Banking and Finance1675-722X2018-07-0110.32890/ijbf2017.13.2.8507Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in IndonesiaAhmad NaufaI Wayan Nuka LantaraThis study examines the relationship between foreign ownership and return volatility, trading volume, and risk of stocks at the Indonesia Stock Exchange (IDX). Panel data of selected companies listed on the LQ45 index of the IDX was employed for the period between 2011 and 2017. Foreign ownership was found to positively affect stock return volatility, trading volume, and risk. Hence, more substantial foreign ownership of stocks meant more drawbacks to Indonesian stocks. Therefore, there is a need for the Indonesian government to limit and regulate foreign shareholders in Indonesia.  https://www.scienceopen.com/document?vid=a1edad53-75f9-451b-a6e3-715b584561e1
collection DOAJ
language English
format Article
sources DOAJ
author Ahmad Naufa
I Wayan Nuka Lantara
spellingShingle Ahmad Naufa
I Wayan Nuka Lantara
Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia
International Journal of Banking and Finance
author_facet Ahmad Naufa
I Wayan Nuka Lantara
author_sort Ahmad Naufa
title Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia
title_short Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia
title_full Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia
title_fullStr Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia
title_full_unstemmed Foreign Ownership, Return Volatility, Trading Volume, and Risk of Stocks in Indonesia
title_sort foreign ownership, return volatility, trading volume, and risk of stocks in indonesia
publisher Universiti Utara Malaysia
series International Journal of Banking and Finance
issn 1675-722X
publishDate 2018-07-01
description This study examines the relationship between foreign ownership and return volatility, trading volume, and risk of stocks at the Indonesia Stock Exchange (IDX). Panel data of selected companies listed on the LQ45 index of the IDX was employed for the period between 2011 and 2017. Foreign ownership was found to positively affect stock return volatility, trading volume, and risk. Hence, more substantial foreign ownership of stocks meant more drawbacks to Indonesian stocks. Therefore, there is a need for the Indonesian government to limit and regulate foreign shareholders in Indonesia.  
url https://www.scienceopen.com/document?vid=a1edad53-75f9-451b-a6e3-715b584561e1
work_keys_str_mv AT ahmadnaufa foreignownershipreturnvolatilitytradingvolumeandriskofstocksinindonesia
AT iwayannukalantara foreignownershipreturnvolatilitytradingvolumeandriskofstocksinindonesia
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