Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)

Institutional Ownership and Stock Performance Around Index Rebalancing: Evidence From LQ45 Index

Authors
Puspita Pratiwi, Permata Wulandari
Corresponding Author
Puspita Pratiwi
Available Online 27 November 2020.
DOI
10.2991/aebmr.k.201126.060How to use a DOI?
Keywords
Institutional investors, Index rebalancing, Stock performance
Abstract

This study aims to study the effect of the index rebalancing event on changes in share ownership which can further improve the performance of stocks that enter and exit the index. In this study used a sample of 164 events in which there were 82 incidents of shares entering and 82 incidents of shares leaving the LQ45 index constituents in the period 2010 - 2019 with a total of 4,920 observations. Data processing techniques using panel data regression method. The results showed the effect of the index rebalancing to institutional ownership has positive relationship. Changes in the number of shareholdings by institutional investors are not significant to stock performance. The summary of the results of this study supports the rebalancing of LQ45 index into one of the information used by investors in the Indonesian capital market. Where the shares added in the constituents, rebalancing event to be a positive information for investors, while the release of shares from constituents was not found strong evidence to be negative information for investors.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
27 November 2020
ISBN
10.2991/aebmr.k.201126.060
ISSN
2352-5428
DOI
10.2991/aebmr.k.201126.060How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Puspita Pratiwi
AU  - Permata Wulandari
PY  - 2020
DA  - 2020/11/27
TI  - Institutional Ownership and Stock Performance Around Index Rebalancing: Evidence From LQ45 Index
BT  - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
PB  - Atlantis Press
SP  - 543
EP  - 552
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201126.060
DO  - 10.2991/aebmr.k.201126.060
ID  - Pratiwi2020
ER  -