Erna Erna
Management Dept of Economic Faculty, Universitas Gajah Putih Takengon, Indonesia

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Do Financing and Investment Determine the Capital Market Reaction? Evidence from Listed Mining Companies in Indonesia Bambang Surahman; Elisa Khairani; Erna Erna; Erita Erita
Journal of Accounting Research, Organization and Economics Vol 3, No 1 (2020): JAROE, Vol.3 No.1 April 2020
Publisher : Universitas Syiah Kuala

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (815.951 KB) | DOI: 10.24815/jaroe.v3i1.16439

Abstract

Objective – The level of trust in the stocks market is one of the important factors to improve the company’s image in facing the increasingly challenging global market. The stock market’s trust can be analyzed by the business capital owned by its company. This research aims to analyze the influence of financing and investment on the dependent variables of capital reaction taking the samples of mining companies listed on the Indonesia Stock Exchange (IDX).  This study also analyzes the responses in the ability of mining companies in the capital market.  Design/methodology – The associative approach has been used in this research and a descriptive research model has been utilized. This research is intended to examine the free effect of financing and investment on the dependent variable of the market reaction. The sample used in this study is saturated sampling. Samples of 32 companies out of 44 mining companies listed on the IDX were drawn for analysis purposes. Results – This study found that DER financing and PER investment (price-earnings ratio) have no significant impact on capital market reaction TVA (trading volume activity) in listed mining companies in Indonesia. It can be concluded that increasing quality of mining companies in Indonesia are mostly not influenced by the power of DER and investment PER.
Do Financing and Investment Determine the Capital Market Reaction? Evidence from Listed Mining Companies in Indonesia Bambang Surahman; Elisa Khairani; Erna Erna; Erita Erita
Journal of Accounting Research, Organization and Economics Vol 3, No 1 (2020): JAROE, Vol.3 No.1 April 2020
Publisher : Universitas Syiah Kuala

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24815/jaroe.v3i1.16439

Abstract

Objective – The level of trust in the stocks market is one of the important factors to improve the company’s image in facing the increasingly challenging global market. The stock market’s trust can be analyzed by the business capital owned by its company. This research aims to analyze the influence of financing and investment on the dependent variables of capital reaction taking the samples of mining companies listed on the Indonesia Stock Exchange (IDX).  This study also analyzes the responses in the ability of mining companies in the capital market.  Design/methodology – The associative approach has been used in this research and a descriptive research model has been utilized. This research is intended to examine the free effect of financing and investment on the dependent variable of the market reaction. The sample used in this study is saturated sampling. Samples of 32 companies out of 44 mining companies listed on the IDX were drawn for analysis purposes. Results – This study found that DER financing and PER investment (price-earnings ratio) have no significant impact on capital market reaction TVA (trading volume activity) in listed mining companies in Indonesia. It can be concluded that increasing quality of mining companies in Indonesia are mostly not influenced by the power of DER and investment PER.