Effect of Trading Volume, Market Capitalization, Firm Size in explaining Return on Vultures

Main Article Content

Dedi Hariyanto

Abstract

Purpose: The study aims to examine the effect of trading volume, market capitalization, and firm size in explaining return on vultures in selected companies in Indonesia.


Methodology/Approach/Design: The population is 131 JII forming companies in IDX between December 2009 – May 2010 to December 2019 – May 2020. All data is transformed into standard form because the model used is path analysis. The corresponding regression of equation 1 is the Random Effect model and the corresponding Regression equation 2 is the Fixed Effect model. This study uses panel data analysis; the Chow test and Hausman test are also used. Data is processed using statistics EViews software. 


Results: The results of the equalization test 1, trading volume has a significant negative effect on the return of shares. The results also show that the market capitalization has a significant negative effect on the return of shares, and consequently the size of the company has a significant negative effect on the return of shares. Hasil testing for equalization 2, trading volume has a significant effect on vultures, while market capitalization has no significant effect on vultures. The size of the company has a significant effect on vultures, and the return of the company has a significant effect on vultures.


Practical Implications: This research is limited to the variety of indices and varieties of securities that become populations and samples. Future research can be developed by focusing on indices and securities as well as the development of other variables in the behavioral finance section in addition to herding.


Originality/Value: This study differs greatly from previous studies in emerging markets in contributing to literature from a new direction in exploring investor returns and herding.

Article Details

How to Cite
Hariyanto, D. . (2021). Effect of Trading Volume, Market Capitalization, Firm Size in explaining Return on Vultures. Journal of Advanced Research in Economics and Administrative Sciences, 2(2), 50-64. https://doi.org/10.47631/jareas.v2i2.228
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