Impact in Changing Price Fraction to the Stock Trading Indicators in Indonesia Stock Exchange

Authors

  • Natalia Natalia Bina Nusantara University
  • Mulyono Mulyono Bina Nusantara University
  • Dian Kurnianingrum Bina Nusantara University

DOI:

https://doi.org/10.21512/bbr.v7i3.1783

Keywords:

Indonesia Stock Exchange, fraction of stock price, trading volume, value of stock trading, stock trading frequencies

Abstract

The purpose of this study was to determine how the impact of changes the price fraction to the stock trading indicator that is volume, value, and frequency of trading transactions. Data were analyzed using the Mann-Whitney U test. The results show that the volume of stock trading is not affected significantly by the implementation of the tick size, whereas for the value of trade and frequency of trade significantly affected.

Dimensions

Plum Analytics

Author Biographies

Natalia Natalia, Bina Nusantara University

Management Department, School of Business Management

Mulyono Mulyono, Bina Nusantara University

Management Department, School of Business Management

Dian Kurnianingrum, Bina Nusantara University

Management Department, School of Business Management

References

Anderson, H. D., & Peng, Y. (2013). From cents to halfcents

and its Impact on liquidity. Research Paper School of Economics and Finance. doi:10.2139/ssrn.2229025.

Bodie, Z., Kane, A., & Marcus, A. J. (2009). Investments (8th ed.). International edition, McGraw-Hill Education (Asia).

Bursa Efek Indonesia. IDX Statistic. Various Edition.

Bursa Efek Indonesia. Peraturan Nomor II-A tentang

perdagangan efek bersifat ekuitas. Keputusan Direksi BEI Nomor Kep-00071/BEI/11-2013.

Chang, M. (2014). The impact of minimum tick size on the liquidity of the New Zealand stock market: A dissertation submitted to Auckland University of Technology in partial fulfilment of the requirements for the degree of Master of Business (MBus), 2014.

Chien, C., Liao, T., & Lee, H. (2014). The information content of the thinner order book following tick size reduction. Managerial Finance, 40(3), 218-233. doi:10.1108/mf-11-2012-0238

Goldstein, M. A., & A. Kavajecz, K. (2000). Eighths, sixteenths, and market depth: Changes in tick size and liquidity provision on the NYSE. Journal of Financial Economics, 56(1), 125-149. doi:10.1016/s0304-405x(99)00061-6.

Hameed, A., & Terry, E. (1998). The effect of tick size on price clustering and trading volume. J Bus Fin & Acc, 25(7&8), 849-867. doi:10.1111/1468-5957.00216.

Husnan, S. (2001). Dasar – dasar teori portofolio dan

analisis sekuritas (3rd ed.). Yogyakarta: UPP AMP YKPN.

Jones, C. P. (2010). Investments: principles and concepts.

Asia: John Wiley & Sons.

Porter, D. C., & Weaver, D. G. (1997). Tick size and market quality. Financial Management, 26(4), 5. doi:10.2307/3666124.

Satiari, F. (2009). Analisis perbedaan sistem fraksi harga saham terhadap variabel bid-ask Spread, depth, dan volume perdagangan (Studi pada fraksi harga Rp.10, Rp.25, Rp.50 di Bursa Efek Indonesia). Thesis. Universitas Diponegoro. Semarang.

Sarwono, J. (2012). Mengenal SPSS Statistic 20. Jakarta:

Elex Media Komputindo. Jakarta.

Sekaran, U., & Bougie, R. J. (2013). Research methods for

business: A skill building approach (6th ed.). John Wiley & Sons.

Sunariyah (2011). Pengantar pengetahuan pasar modal.

STIM YKPN. Yogyakarta.

Usman, M., Djoko K., Arys I., Hasan Z. M., I Gede P. A.

S., I Nyoman. T., & Srihandoko. (1994). ABC pasar modal Indonesia. Jakarta: Institut Bankir Indonesia.

Wu, Y., Krehbiel, T., & Brorsen, B. W. (2011). Impacts of

tick size reduction on transaction costs. International Journal of Economics and Finance, 3(6), 57. doi:10.5539/ijef.v3n6p57.

Downloads

Published

2016-11-30
Abstract 485  .
PDF downloaded 283  .