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The effect of foreign ownership on stock return volatility with financial ratio as control variables Erric Wijaya; Sofi Nurhazizah; Syamsyul Samsudin
Jurnal Fokus Manajemen Bisnis Vol. 15 No. 1 (2025)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/fokus.v15i1.12011

Abstract

The capital market in Indonesia is an attractive investment destination for both domestic and foreign investors. It allows investors with excess funds to invest in various securities to obtain returns. However, volatility is a risk factor in investing, prompting investors to monitor volatility levels to make informed decisions. This study seeks to examine the impact of independent variables, particularly foreign ownership, in conjunction with control variables including company size, leverage, book to market ratio, and turnover on stock return volatility. The sample comprises 33 mining industry businesses listed on the Indonesia Stock Exchange from 2019 to 2023, harnessing secondary quantitative data. The study utilizes panel data regression analysis. The data was analyzed using Eviews software. The results demonstrate that foreign ownership and leverage exert a modest negative influence on stock return volatility, as does the book to market ratio. In contrast, business size and turnover positively enhance stock return volatility, with turnover exerting the most substantial influence. Investors will allocate their assets to a huge enterprise. The turnover variable exerts the most significant impact on stock return volatility. This is because investors typically examine patterns in a company's turnover rate while trading shares in the capital market.
Co-Authors Adi, Roni Aisyah Sarahditya Andriani, Meta Anindya Anggun Larasati Antyo Pracoyo Ariani, Savira Indah Aulia Wahyuning Tiyas Budhijana, Bambang Budhijana, R Bambang Dian Puspitasari Dimas Trinanda Susanto Dita Noviany Efrita, Azizah Putri Enggal Sriwardiningsih, Enggal Fahreza Putranda Farhanah, Hanifah Farras, Naufal Haidar Fatiah Istarini Fatiah Istarini, Fatiah Ferli, Ossi Fitri M Jowey, Gita Hariyanti, Enny Haryanti, Ennny Haryanti, Enny Ika Putera Ika Putera Waspada Intan Purnama Sari Isma Arief Dharmawan Joyosumarto, Subarjo Kania Nastiti Krisnandya Kesuma wardhani Kriztianto, Bayu Kuncoro Budi Satrio M. Bugo Vandori Maju Simatupang, Batara Marleyn, Clara Juvita Indri Maya Sari Melly, Popy Sandra Muchlis Muchlis Muhammad Reyhan Nadia Nada Nasim, Muhammad Natasya, Nur Bunga Noviyanti, Indah Salsa Nugraha Nugraha Nugraha Oktavia Oktavia Ramadaniyah Paulina Paulina Paulina Paulina Phimnoi, Kanokwan Pracoyo, Antyo Putra, Firdaus Putranto , Catur Zulham Putranto, Catur Zulham Rajagukguk, Denni Samuel Ramadhany, Pryma Andhika Ratna Nilanjana Kurniathena Rely, Gilbert Rofianto, Whony Samuel, Indah Elychia Santi Rimadias Sapto, Satria Sarah Hani Mahdiyah Setiawati, Asri sitohang, Pebri Monica Sofi Nurhazizah Susiyanti Susiyanti Suyastrini, Ni Luh Putu Dian Syamsyul Samsudin Tambengi, Albert Berce Tinjung Desy Nursanti Tinjung Desy Nursanti Tiqisha Putri Fadillah Trisnawati, Sinta Wardani, Deni Wasi Bagasworo Whony Rofianto Widjaja, Anthony Widjaja Yuda Adipraya Iskandar Zahna, Rizka Zahrotul Zhafira Ramadhani Zihan Fadhilah