A stock portfolio strategy in the midst of the COVID-19: Case of Indonesia

Kristanti, Farida Titik; Salim, Dwi Fitrizal; Indrasari, Arum; Aripin, Zaenal

doi:10.15549/jeecar.v9i3.822

Cited by 14 publications

(11 citation statements)

References 29 publications

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“…This strategic adaptability aligns with the dynamic nature of high beta stocks, contributing to a more responsive and potentially lucrative portfolio. The results of this investigation are consistent with earlier studies carried out by Kristanti et al, (2022 Salim & Rizal (2021) Waspada et al, (2021), all of which arrived at similar conclusions. This collective body of research consistently supports the notion that active investment strategies outperform passive ones in the quest to maximize portfolio returns.…”

Section: Discussionsupporting

confidence: 93%

“…There is no efficient investment portfolio if it consists of individual shares because efficiency is formed from the combination of shares (diversification) in the portfolio (Kristanti et al, 2022). A portfolio is a combination of several assets.…”

Section: Investment Portfoliomentioning

confidence: 99%

“…Some researchers have tested the two strategies, to find out which strategy can provide the best portfolio return. Some say that active strategies are better (Kristanti et al, 2022;Salim & Rizal, 2021;Waspada et al, 2021), and some others say passive strategies are better (Alford & Rakhlin, 2017;Hendrawan et al, 2020) and researchers (Mustika & Zulfikar, 2021) state that there is no significant difference in the portfolio performance of active strategies and passive strategies.…”

Section: Introductionmentioning

confidence: 99%

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Performance Evaluation of State-Owned Company Stocks in Indonesia

Salim,

Rizki,

Rizal

2024

IJFBS

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This study delves into the performance of Indonesian state-owned enterprises (BUMN) stocks from February 2021 to October 2023, attracting investor attention due to their strategic position in the national economy. However, the stock performance during this period exhibited suboptimal movements, failing to surpass the returns of the Indonesia Stock Exchange Composite Index (IHSG). To address this, a prudent investment strategy is essential, encompassing portfolio construction and management. In portfolio construction, the study employs proven smart beta strategies, known for delivering superior returns compared to traditional portfolios. Portfolio management involves testing two strategies: a passive approach utilizing the buy-and-hold technique and an active approach employing portfolio recomposition. This quantitative descriptive study utilizes historical closing price data, forming portfolios based on selected beta groups. Weighting is adjusted, with higher beta stocks receiving a larger allocation in the portfolio. The research compares two beta groups (high and low) and two investment strategies (active and passive) using the Sharpe, Treynor, and Jensen indices. The results indicate that the high-beta group and active strategy outperform, aligning with the investment adage "high risk, high return." The high-beta group yields higher returns due to its increased risk profile, consistent with the notion of high-risk, high-reward investments. The active strategy provides opportunities to discard underperforming stocks and enhance the weighting of well-performing ones during recomposition. These findings are valuable for investors seeking to capitalize on BUMN stocks at lower prices. The study aids in minimizing negative returns (losses) by identifying the most suitable strategy for BUMN portfolios. Investors can leverage this research to make informed decisions and navigate the challenges associated with investing in state-owned enterprises.

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Section: Discussionsupporting

confidence: 93%

Section: Investment Portfoliomentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Performance Evaluation of State-Owned Company Stocks in Indonesia

Salim,

Rizki,

Rizal

2024

IJFBS

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“…The test of differences in returns on the composition of funds on stocks in different portfolios with the same sample was also carried out by Kristanti et al (2022). The results prove that the same sample will have different returns, and different portfolio risks.…”

Section: Discussionmentioning

confidence: 99%

Horizon of Cryptocurrency Before Vs During COVID-19

Waspada¹,

Salim²,

Krisnawati³

2022

Preprint

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Cryptocurrencies are now the most popular investment instruments among millenials. Crypto offers great returns in a short period of time. Prior to COVID-19, Crypto experienced significant price fluctuations accompanied by an increase in the number of high transaction volumes. This situation was disrupted by the presence of the COVID-19 which made the world economy devastated, marked by the decline of stock prices in the world, especially in Indonesia. A paired test was conducted in this study to compare the state of Crypto before and during COVID-19 with the variables of Risk, Transaction Volume, Return, and Sharpe Performance. The results showed that there was a significant difference in the variables of Transaction Volume and Return. However, there was no significant difference in the Risk and Sharpe performance before and during COVID-19. This study shows that despite the COVID-19 pandemic, the enthusiasm of investors who transact crypto assets is not affected and they still get returns in accordance with the investments made. The high risk will be followed by a high standard deviation, so that the Sharpe Performance is small. Cryptocurrencies still have many gaps to research, such as regulation, so that many countries have not legalized Crypto transactions. If there is no regulation for Crypto, it is certain that an increase in cybercrime harms crypto investors and threatens global financial stability. Nevertheles, with or without COVID-19, investment transactions gain and lose based on confidence in the limited market. Therefore, the success of confidence fluctuations in crypto encourages the emergence of alternative coins created by investors to conduct an Initial Coin Offering (ICO).

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“…Dengan demikian dapat dirumuskan hipotesis sebagai berikut: H1: Financial leverage berpengaruh terhadap tingkat underpricing Penilaian prospek masa depan perusahaan tidak akan terlepas dari perhitungan efektifitas perusahaan dalam menghasilkan keuntungan dan kepastian pengembalian investasi. Kristanti et al (2022) menyatakan investor selalu mengharapkan imbal hasil di masa mendatang. Profitabilitas ialah jenis rasio keuangan yang menunjukkan seberapa besar kemampuan perusahaan dalam menciptakan keuntungan.…”

Section: Kerangka Teoritis Dan Pengembangan Hipotesisunclassified

Tingkat Underpricing Dan Faktor-Faktor Yang Mempengaruhinya

Alya Hafsah,

Khairunnisa

2023

akurasi

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Penelitian ini menguji korelasi faktor keuangan dan faktor non-keuangan dan pengaruhnya dengan fenomena underpricing pada IPO di Indonesia. Dengan pendekatan kuantitatif, penelitian ini menggunakan data sekunder yang berasal dari prospektus saat IPO. Sampel penelitian sebanyak 107 dari total 272 populasi perusahaan yang melakukan IPO periode 2018-2022. Analisis faktor dan analisis regresi berganda bertindak sebagai metode analisis. Analisis faktor menemukan financial leverage, profitabilitas, reputasi underwriter dan reputasi auditor saling berkorelasi sebagai faktor-faktor yang dapat menentukan tingkat underpricing. Selanjutnya, analisis regresi linier berganda menemukan adanya pengaruh signifikan reputasi auditor terhadap tingkat underpricing, sedangkan pada financial leverage, profitabilitas dan reputasi underwriter tidak ditemukan pengaruh signifikan terhadap tingkat underpricing. Bagi manajer perusahaan maupun investor, studi ini mengimplikasikan auditor bereputasi saat pelaksanaan IPO dapat mengurangi tingkat underpricing yang dialami perusahaan seiring dengan meningkatnya kepercayaan investor.

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A stock portfolio strategy in the midst of the COVID-19: Case of Indonesia

Cited by 14 publications

References 29 publications

Performance Evaluation of State-Owned Company Stocks in Indonesia

Performance Evaluation of State-Owned Company Stocks in Indonesia

Horizon of Cryptocurrency Before Vs During COVID-19

Tingkat Underpricing Dan Faktor-Faktor Yang Mempengaruhinya

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