Proceedings of the 1st Aceh Global Conference (AGC 2018)

The Relevance of the Fair Value of Securities Investment in Predicting the Income and Stock Prices of the Banking Industry in Indonesia

Authors
Syarief Fauzie, Wahyu Sugeng Imam Soeparno
Corresponding Author
Syarief Fauzie
Available Online January 2019.
DOI
https://doi.org/10.2991/agc-18.2019.88How to use a DOI?
Keywords
Fair value, Amortized cost, Income, Stock price
Abstract
The use of fair value as a measurement in accounting should have relevant information if the information can be used to predict the company's performance in the next period. The purpose of this study is to analyze the relevance of the implementation of the fair value of securities in predicting future income and the stock price of the Banks. This study uses the sample of 23 banks listed on the Indonesia Stock Exchange with time series data of 8 years from 2010-2017. This study uses panel data and regression analysis to examine the effect of independent variables on dependent variables. The independent variable used in this study is the Bank's income and stock price and the dependent variable used is the difference fair value and amortized cost which is the difference between the fair value securities and the amortized cost securities. The controlling variables used in this study consisted of assets, interest income, capital tier 1, non-performing loans and asset-liability repricing gap. The results analysis found that the difference in fair value and the amortized cost has a significant effect on the future income and stock price and the book value of equity has a positive effect on the stock price
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Volume Title
Proceedings of the 1st Aceh Global Conference (AGC 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
January 2019
ISBN
978-94-6252-644-0
ISSN
2352-5398
DOI
https://doi.org/10.2991/agc-18.2019.88How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Syarief Fauzie
AU  - Wahyu Sugeng Imam Soeparno
PY  - 2019/01
DA  - 2019/01
TI  - The Relevance of the Fair Value of Securities Investment in Predicting the Income and Stock Prices of the Banking Industry in Indonesia
BT  - Proceedings of the 1st Aceh Global Conference (AGC 2018)
PB  - Atlantis Press
SP  - 588
EP  - 594
SN  - 2352-5398
UR  - https://doi.org/10.2991/agc-18.2019.88
DO  - https://doi.org/10.2991/agc-18.2019.88
ID  - Fauzie2019/01
ER  -