Abstract:This study evaluates the use of futures contracts for precious metals to hedge against stock market risks and their hedging effectiveness on the Indonesian Stock Exchange (IDX) and the Kuala Lumpur Stock Exchange (KLSE). This study found that gold was the most effective hedging instrument, since it produced the highest hedging effectiveness both on the IDX and the KLSE among the other precious metals. None of the hedged portfolios had a higher Sharpe's ratio than the unhedged one on the IDX; however, all the hedged portfolios on the KLSE had a higher Sharpe's ratio than the unhedged ones. Almost all the hedged portfolios could produce a higher Treynor's ratio than the unhedged portfolios, both on the IDX and the KLSE. In general, this study concluded that studying some precious metals could reduce the investment risk, which was shown through the variance produced by the smaller portfolios, while gold can improve the risk-adjusted performance.

This study aims to examine the effect of several variables such as profitability, firm size, asset structure, and commodity price (coal) on the capital structure with the debt to equity ratio (DER) as a proxy in the coal mining companies listed on the Indonesian capital market (i.e., the Indonesia Stock Exchange (IDX). The different results of previous studies related to the effect of some independent variables such as the firm size, profitability, asset structure, and dividend policy, such as dividend payout ratio to the DER, yield the research gaps that require further research. Data in this research were taken from the official public listed company’s annual reports on the IDX website. By employing the multiple regression techniques, this study found that only profitability and asset structure significantly affect the capital structure (proxied by DER). The effect of profitability was negative, while the effect of asset structure was positive. Based on these results, the managers may start considering re-balancing the use of external funds if the profitability level increases. Further, they also need to maintain the company’s asset structure and balance its’ fixed assets so that the capital structure is well maintained. In general, the findings supported the pecking order theory.

The purpose of this study was to determine and examine the effect of asset structure, profitability, firm size and company growth on the capital structure of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2013 – 2017. The sampling method used was purposive sampling that was 52 companies in the criteria. Data obtained from the Financial Reports and Performance Reports published in the Indonesian Capital Market Directory (ICMD). The analytical tool that used is multiple regression. Hypothesis testing is done by the F test, t-test and determination coefficient. For the classical assumption, the test is done by the normality test, autocorrelation test, multicollinearity test, and heteroscedasticity test. The analysis of asset structure has a positive effect on the capital structure and not significant to the capital structure, profitability has a negative and significant effect on the capital structure, the size of the company has a positive and significant effect on the capital structure, and the company’s growth has a negative and significant effect on the capital structure.

Mutual funds considered as an investment alternative for investors. One type of mutual fund that attracts many investors was the equity mutual funds. Equity mutual fund is a type of mutual funds that most part of the investment consists of stocks in the capital market so the risk rate was higher than the other types of mutual funds. For its different characteristic, the measurement for equity funds performance did not be same with other types of mutual funds. As a stock portfolio, equity mutual funds can be measured by portfolio measurement methods such as Sharpe Index, Treynor Ratio, Jensen Index, Adjusted Sharpe Index, Adjusted Jensen Index, and Sortino Ratio. This study was conducted by using all of those performance measurements as most research in Indonesia was conducted by using limited performance measurements (focusing on Sharpe Index, Treynor Ratio, and Jensen Index). This study aims to evaluated the performance of 42 equity mutual funds available in Indonesia by employing Sharpe Index, Treynor Ratio, Jensen Index, Adjusted Sharpe Index (ASI), Adjusted Jensen Index (AJI), and Sortino Ratio because most previous researches in Indonesian setting disregards ASI and AJI. In general, it was concluded that the SAM Indonesian Equity was the best performing equity fund during the study period. It was further found that most equity mutual fund studied have been well diversified. ABSTRAKReksa dana merupakan alternatif investasi bagi kalangan investor. Salah satu reksa dana yang banyak menarik kalangan investor adalah reksa dana saham. Reksa dana saham adalah jenis reksa dana yang sebagian besar investasinya terdiri dari saham-saham di pasar modal, sehingga memiliki tingkat risiko yang lebih besar dibandingkan jenis-jenis reksa dana yang lain. Karena memiliki karakteristik yang berbeda,maka pengukuran kinerja reksa dana saham tidak dapat disamakan dengan jenis reksa dana yang lain. Sebagai portofolio, maka reksa dana saham dapat diukur dengan menggunakan metode-metode pengukuran portofolio seperti Sharpe Index, Treynor Ratio, Jensen Index, Adjusted Sharpe Index, Adjusted Jensen Index, dan Sortino Ratio. Penelitian ini dilakukan dengan menggunakan seluruh pengukuran kinerja tersebut karena kebanyakan penelitian di Indonesia dilakukan dengan terbatas pada beberapa pengukuran kinerja saja (berfokus pada Sharpe Index, Treynor Ratio dan Jensen Index). Penelitian ini bertujuan untuk mengevaluasi kinerja 42 reksa dana saham yang terdapat di Indonesia dengan menggunakan Sharpe Index, Treynor Ratio, Jensen Index, Adjusted Sharpe Index, Adjusted Jensen Index, bahkan Sortino Ratio. Secara umum disimpulkan bahwa dengan menggunakan berbagai alat pengukuran yang ada maka reksa dana saham SAM Indonesian Equity merupakan reksa dana saham dengan kinerja yang terbaik selama periode penelitian. Lebih lanjut ditemukan pula bahwa sebagian besar reksa dana saham yang dikaji telah terdiversifikasi dengan baik.

Purpose: The purpose of this study is to explore the most significant profitability determinants of the manufacturing companies in Indonesia. Design/Methodology/Approach: Several independent variables examined for their influence on profitability were working capital, firm size, firm growth, capital structure, and non-debt tax shields. The sample of this study were manufacturing firms listed on the Indonesia Stock Exchange from 2010 to 2017. The number of samples were 350 manufacturing companies. Findings: The results of this study indicate that working capital, firm size and firm growth were positively related to profitability. Meanwhile, capital structure and non-debt tax shield did not affect profitability. The findings of this study were consistent with the pecking order theory and the financial agency theory. Practical implications: This study implies that managers need to adjust their investment needs with the profitability that has been achieved and the total assets of the company, and to maximize the value of the company by managing current assets so that the rate of the return on marginal investment is equal to or greater than the cost of capital used to finance the current assets. Furthermore, financial managers must be able to determine essential investment objectives by maximizing the use of assets and fixed assets which are expected to make the company to enjoy the sales growth in the future. Originality/Value: Although this study organically builds upon recent studies about the firms' profitability, it conducted in the new administrative setting in Indonesia, which is the Widodo's administration. Widodo's administration supports the manufacturing industry to be able to compete globally.