TY - JOUR
T1 - Inversed illiquidity and corporate investment on the Indonesian stock exchange's Kompas 100 index
AU - Madyan, Muhammad
AU - Aryani, Made Gitanadya Ayu
AU - Anggono, Mohammad Triyo
AU - Firdausi, Novian Abdi
N1 - Publisher Copyright:
© 2020 Primrose Hall Publishing Group.
PY - 2020
Y1 - 2020
N2 - Investors will respond to high investment by increasing trading volume, while firms will also boost this growth with their capital spending as a form of investment. Through inversing illiquidity, we can find another measurement viewpoint on the stock liquidity while also assessing the impact of corporate investments. This paper investigated empirical evidence on the Kompas 100 Index, which consisted of one hundred of the most liquid stocks in the Indonesian Stock Market. The result showed that corporate investment has a negative relationship to stock liquidity, caused by the increasing leverage to fund the investment. Investors viewed this as an increasing risk and reacted negatively.
AB - Investors will respond to high investment by increasing trading volume, while firms will also boost this growth with their capital spending as a form of investment. Through inversing illiquidity, we can find another measurement viewpoint on the stock liquidity while also assessing the impact of corporate investments. This paper investigated empirical evidence on the Kompas 100 Index, which consisted of one hundred of the most liquid stocks in the Indonesian Stock Market. The result showed that corporate investment has a negative relationship to stock liquidity, caused by the increasing leverage to fund the investment. Investors viewed this as an increasing risk and reacted negatively.
KW - Corporate investment
KW - Firm size
KW - Inversed illiquidity
KW - Stock return
KW - Stock turnover
UR - http://www.scopus.com/inward/record.url?scp=85083062725&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85083062725
SN - 2201-1315
VL - 11
SP - 508
EP - 520
JO - International Journal of Innovation, Creativity and Change
JF - International Journal of Innovation, Creativity and Change
IS - 11
ER -