Muhammad Madyan, - and MADE GITANADYA AYU ARYANI, - and Mohammad Triyo Anggono, - and Novian Abdi Firdausi, - (2020) Inversed Illiquidity and Corporate Investment on the Indonesian Stock Exchange’s Kompas 100 Index. International Journal of Innovation, Creativity and Change, 11 (11). pp. 508-520. ISSN 2201-1315, eISSN: 2201-1323

	Text (Artikel) Moh Madyan_Artikel204_Inversed Illiquidity.pdf Download (1MB)
	Text (Peer Review) Moh Madyan_Peer Review204.pdf Download (1MB)
	Text (Similarity Test) Moh Madyan_Similarity204_Inversed Illiquidity.pdf Download (2MB)

Abstract

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.

Actions (login required)

View Item