Indikator untuk pilihan biner tertimbang harga rata-rata volume
Investor Reaction Towards Regulation Copper Effects on Stock Market Types and Data Resources Research Model and Hypothesis Testing Descriptive Statistics and Normality Tests Hypothesis 1 H1 Testing Hypothesis 2 H2 Testing Limitations indikator untuk pilihan biner tertimbang harga rata-rata volume the Study Suggestions for Future Research Timeline for The Divestment Scheme Background Since the promulgation of mining law No 4 ofFreeport Indonesia and Indonesian Government was constantly in conflicts.
The key points of the feud can be summed up as: However, the disagreement was solved with the deal made in 29th of August that stated: This research will analyze the impact of the agreement between both parties towards Indonesian and American capital market. The study will provide empirical evidence about such government-related announcement become a factor that affects the stock market in Indonesia and America. The stock price movement can be hard to predict and it may fluctuate over the time.
Various aspects such as investors' expectations, global economic condition, and others can alter the price Qiu and Song Therefore, with this study, 2 the investors can anticipate on what to expect when such event happens in the future, so that they can make the right decision to invest.
Furthermore, this paper can help Government in formulating regulation especially in the mining industry so that it can establish better rules for any of its stakeholders. Government will be more knowledgeable about how the investors behave towards such event.
Thus, it will be able to create law that may trigger the economic growth and stability in terms of the capital market situation, so that it can attract the investors Suryoputro Event study methodology will be incorporated to test the effect that the event has towards Indonesian and American stock market. The method will calculate the expected return forecasted using the historical return and the actual return to obtain the abnormal return.
This abnormal return will indicate if the effect that the event possessed towards the capital market. However, the abnormal return needed to be tested statistically to prove that the abnormal return is resulted from the indikator untuk pilihan biner tertimbang harga rata-rata volume announcement not from other factors Hartono, Studi Peristiwa: It is assumed that the market is efficient, thus it will react towards the information conveyed in the agreement announcement.
The reaction will be in the form of the fluctuation of the stock price in which it moves according to the information Malkiel Investors are perceived to be rational and seeking to maximize their 3 wealth as well as eager to compete by predicting the value of the stocks based on the available information Fama, Random Walks in Stock Market Prices Efficient market hypothesis has become the main basis of the research.
The hypothesis considered that ideally the market can give accurate signals of all available information through the securities prices Fama, Efficient Capital Markets: A Review of Theory and Empirical Work Therefore, based on the assumption, a stock price can be regarded as the stock's intrinsic value Fama, Random Walks in Stock Market Prices Moreover, the stock price of a company can be affected by various events such as economy or political event or a particular-company one MacKinlay According to Hartonothe events can be in the form of announcements or occurences.
The event studied in this research can be categorized as government-related announcement. As investors' expectation plays a big role in the movement of securities price Zweigthey tend to choose a country with good reputation, economic regulations and sustained economic growth to invest in Suryoputro The regulatory aspect will affect the investors' decision because improper policies may create higher cost of doing business Besley Thus, the decision or policy made by Government can be a factor affecting the stock prices.
According to Stevenson and Boydinvestors are likely to use the commodity price as a proxy to make investment decisions for the commodity stocks.
A study by Choi and Hammoudeh mentioned in Ildirar and Iscan had 4 proved that commodity prices indikator untuk pilihan biner tertimbang harga rata-rata volume as oil, copper, gold, and silver influenced the stock markets. Yet, the commodity price fluctuates depending on various factors such as technology, local and global economic conditions, and others Wets and Rios The impact of the announcement towards the stock market in Indonesia and America will be analyzed.
It is presumed that the agreement announcement will give more power to the Indonesian Government than before. The firm was forced to divest their share to the local Government Ministry of Finance Republic of Indonesia It can be assumed further that the agreement as a win for Indonesian Government in a battle of power with Freeport Indonesia.
When the regulators became more inflexible, the cost of doing business will be higher and became unfavorable for foreign holdings Besley Thus, it is expected that the agreement announcement will bring negative impact towards the stock markets both in Indonesia and America.
Therefore, the announcement will create a negatie abnormal return in Indonesian and American stock market during the event period. The next chapter will consists of the literature review, prior studies, and hypothesis development. The methodology used will be explained further in the third chapter, while the data analysis will be discussed the chapter four.
The last chapter will describe the conclusion, limitation, as well as recommendation for future research. Thus, abnormal return can be calculated and then be statistically tested for the significance.
Problem Statement Researcher is motivated to investigate Indonesia's capital market reaction towards the announcement of the agreement between Freeport Indonesia and Indonesia Government on 29th of August using event study. As such event is deemed to contain information that may affect the stock market.
Thus, the problem statement of this study is: Is the announcement of the agreement between Freeport and Indonesia Government have negative impact to the stock price of the companies listed in the stock exchanges in the U.
Research Purpose According to the research question, this research indikator untuk pilihan biner tertimbang harga rata-rata volume a purpose of: To examine whether there is a negative impact of the announcement of Freeport and Indonesia Government agreement to the stock price of companies listed in stock exchanges in U.
To help Government in assessing the market reaction on its arrangement in order to make better decision that may lead into better economic condition. Research Scopes The research will test indikator untuk pilihan biner tertimbang harga rata-rata volume the market reaction towards the agreement announcement, whether the market is efficient in processing the information contained in the event, using the efficient market hypothesis as the basis.
To prove that the market is efficient, the researcher will analyze the stock price of the listed companies in Indonesia Stock Exchange IDX and America capital market. The data is collected through secondary sources, indikator untuk pilihan biner tertimbang harga rata-rata volume from Bloomberg Terminal, in the period of 15th of March until 4th of September Research Contributions The information writen in this study might be helpful for various parties, such as: For regulator If the study is able to empirically prove the reaction of indikator untuk pilihan biner tertimbang harga rata-rata volume market towards indikator untuk pilihan biner tertimbang harga rata-rata volume event of Freeport agreement with Indonesian Government, this research may become one of the guidance for the regulator in formulating regulation.
The result of this study may give a picture of how the market react towards such government related announcement. Thus, the regulation should be made properly to boost the country's development, especially in economics growth. For investors and other capital market users If the study indikator untuk pilihan biner tertimbang harga rata-rata volume able to empirically prove the reaction of stock market towards the event of Freeport agreement with Indonesian Government, the capital market users investors, broker, market analysts, and others may use this study to improve their decision-making ability regarding their portfolio.
Thus, they could decide when to buy, sell, or hold their stocks in the market. For business executives If the study is able to empirically prove the reaction of stock market towards the event of Freeport agreement with Indonesian Government, the 8 managements of the companies especially the ones listed in IDX can refer to this research in order to make better strategy and decisions in facing similar situation like the event being studied.
Therefore, the companies can be managed better. For academic advancement If the study is able to empirically prove the reaction of stock market towards the event of Freeport agreement with Indonesian Government, it may be an additional literatures of event study methodology researches. Writing Structure The paper is consisted of five chapters, that will be as follows: The hypothesis is determined based on the literature review and the results of prior researches.
It explains the methodology used to test indikator untuk pilihan biner tertimbang harga rata-rata volume hypothesis, select samples, determine observation period, and collect data.
Furthermore the research limitations and suggestions for future studies will be written as well. In article of the law, the business entities, which are owned by foreign investors were obliged to divest their shares to government, regional government, state or region-owned business entities, or national private business enterprises when they had carried out production activities for five years. For the holders of Contracts of Work, under articlethey are also required to perform local refining process as written in article paragraph 1 five years after the law was declared at the maximum UU 4 Based on the current mining law, the mining license holders must be engaged in some of the mining activities rather than fully using the service of third parties PricewaterhouseCoopers The exports prohibition of unprocessed mineral ores commenced at 12th of Januaryfive years after the new mining law was published The Jakarta Post The divestment process can be done in stages with the latest period of divestment is the tenth year of production see Table 2.
Yet, this method might results in lower price than the actual fair market value, which include the net present value of the cash flows ensued from the reserves over the useful life of the mine.
Another divestment scheme that can be utilized is divestment via initial public offering in Indonesian capital markets. When agreement cannot be made for the share price, then it will be priced based on Government's evaluation PricewaterhouseCoopers The issues had been 13 discussed between both parties since the beginning of the year Ministry of Finance Republic of Indonesia The detail of the agreement can be seen below: The teams indikator untuk pilihan biner tertimbang harga rata-rata volume Government and PT Freeport Indonesia will indikator untuk pilihan biner tertimbang harga rata-rata volume the technical matters related to divestment stages and implementation time.
PT Freeport Indonesia shall establish processing or refining facilities or smelter for 5 years, or at the latest, it shall be completed by Octoberunless indikator untuk pilihan biner tertimbang harga rata-rata volume majeure happens. Government revenues are bigger aggregately than through Contract of Work, which is supported by fiscal and legal guarantee, documented for PT Freeport Indikator untuk pilihan biner tertimbang harga rata-rata volume.
Event Study Based on MacKinlayevent study is a measurement on how a particular event is affecting a company's value with the assumption that the prices of security will indicate the impacts of the event promptly. Various events, whether they are specific firm-related events and economy or political wide ones such as mergers and acquisitions, election results and so forth had utilized this methodology to measure the value of a firm or companies resulted from the events.
Binder wrote that event study had been used in studying 14 the movement of security price towards an announcement. Fama in Binderstated that the methodology is used to examine the market is efficient in embodying information available for public as the null hypothesis. One of the reason to incorporate the event study method is analysing how the wealth of company's stockholders is affected by the information assuming that the market is efficient Binder Furthermore, event study is quite easy to be carried out as it only requires information such as event dates, name of the companies, and stock prices.
This method will examine the stock prices in which deemed to be able to represent the true value of the firms as it indicates all future cash flows in discounted value as well as taking into account all relevant information that may effect the firms' value. Stock price is regarded to be true as it cannot be manipulated by the management, unlike profits McWilliams and Siegel Hartono wrote that there are two types of event to be studied using this methodology: The examples of announcements are earnings-related indikator untuk pilihan biner tertimbang harga rata-rata volume, dividend announcements, management-board of director announcements, merger and acquisition announcements, government-related announcements, and others.
While the examples for the occurrences are natural disaster, explosion of a bomb, election, and so on Hartono, Studi Peristiwa: