http://www.thejakartapost.com/news/2009/05/20/idx-concern-investors039-perception.html
Totok Sugiharto | Wed, 05/20/2009 1:36 PM | Supplement
When the modern portfolio theory was popularized by Nobel Prize winner in economics Harry Markowitz, the academic society developed the concept of an efficient capital market (ECM). According to ECM, a market is categorized as efficient if all necessary information is reflected in the value of a particular equity share. Since the 1970s, ECM has been well supported by numerous professors.
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Article - Newspaper
Equity Share Values, IDX, SPERTEL
Title:
Equity Share Valuation in the Indonesian Emerging Capital Market: The Case of LQ45 Companies Quoted at the JSX (ISBN: 978-90-70995-27-0)
Abstract:
This dissertation provides the results of a survey of investment practices and perceptions of investors (fund managers) currently active at the Jakarta Stock Exchange (JSX) in Indonesia. The study also proffers some initial interpretation and analysis of their perceptions of the most important metrics used in valuation and their observation on social, political, economic, regulatory, technological, environmental and legal (SPERTEL) factors that influence the fundamental factors (EM metric) and value of equity shares (EV) of LQ45 companies quoted at JSX. The findings of the study help to shed light on the adequacy of the information, which JSX provides investors to improve the quality of their hold, sell or buy decisions on their LQ45 portfolio. Fund managers’ consequent positive perception of the economy induced them to invest in equity shares of LQ45 companies for their expected future values. These investors firmly believed in the SPERTEL factors’ significant positive influence on the future values of their investment. The model of inter-relationships among SPERTEL, EM metric and value of equity shares of LQ45 companies, as a basic analysis to support the needs of investors to predict the future value of their investment.
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Publication
Emerging Market, Enterprise Multiple, Equity Share Values, JSX, LQ45, SPERTEL, Valuation
Sugiharto T., Inanga, E., & Sembel R. (2007). Modeling Equity Shares of LQ45 Companies Quoted at the JSX. In E. Kaynak, & T. Harcar (Eds.), International Management Development Research Yearbook, Beyond Borders: New Global Management Development Challenges and Opportunities, XVI, 596-604.
Abstract
This paper analyses and interpretes model of equity shares quoted at the Jakarta Stock Exchange (JSX). It examines critically the impact of external risk factors on the Enterprise Multiple (EM) and the Equity Share Values (EV) of investments in LQ45 companies at JSX where investors are yet to optimize their investment opportunities in LQ45 company equity shares. The basic thesis of this paper is that an understanding of the inter-relationship among EV, EM, and external risk variables that affect the values of these equity shares can help investors to manage their portfolios more effectively. The paper shows that the movements of LQ45 company equity share prices as well as sectoral indices are significantly correlated with changes in external risk factors.
Keywords: Equity Share Values, JSX, LQ45, Enterprise Multiple.
download complete article:
www.imda.cc/IMDA%20Program%2020073.pdf
acceptance-full-paper-totok
Publication
Enterprise Multiple, Equity Share Values, Jakarta Stock Exchange
