Totok Sugiharto

complete article: http://www.eurojournals.com/irjfe%2010%20totok.pdf 

Abstract

This paper provides the results of a survey of investment practices and perceptions by major portfolio investors (fund managers) currently active at the Jakarta Stock exchange (JSX) in Indonesia. The paper 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 values of equity shares (EV) of LQ45 firms quoted at JSX. The findings of the survey 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. Besides clarifying investors’ perceptions, the findings of this survey also indicate favourable trading conditions in the JSX and the attraction to the stock market of foreign institutional investors after its revival following the success of democratic presidential election. Fund managers’ consequent positive perception of the economy induced them to invest in equity shares of LQ45 for their expected future values. These investors firmly believed in the SPERTEL factors’ significant positive influence on the future values of their investment. We found inter-relationships among SPERTEL, EM metric and value of equity shares of LQ45, as a basic analysis to support the needs of investors to predict the future value of their investment.

Sugiharto, T., Inanga, E., & Sembel, R. (2007). A Survey of Investors’ Current Perceptions and Valuation Approaches at JSX. International Research Journal of Finance and Economics, 10, 175-206. ISSN-1450-2887.

Publication Emerging Market, Enterprise Multiple, Investors' perceptions, JSX, LQ45, SPERTEL, Valuation

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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