8 research outputs found
The Role of Currency Hedging on Firm Performance: A Panel Data Evidence in Indonesia (Vol.17 No.3 Januari 2015)
No full textThis paper analyzes the role of currency hedging on non-financial firm’s performance. Most firms on the sample have anticipated the currency mismatch risk by balancing the ratio of foreign debt to their asset denominated in foreign currency. Using panel estimation, we find that there is no evidence of currency hedging activities to affect capital and performance of firms. The result underlines the low intensity of currency hedging activities due to lack of incentives, which is inline with the low derivative transaction within the underdeveloped foreign currency market. This finding may raise a concern since currently the development of foreign liabilities for non-financial firmsin Indonesia is increasing in significant level, as well as the increase risk of domestic currency depreciation. For these reasons, Bank Indonesia should take proactive policies to deepen foreign currency market as well as derivative market by providing a more comprehensive and market friendly hedging instruments to banks and non-financial firms, while keep promoting the benefit of currency hedging
PRICE SETTING BEHAVIOR IN AN ONLINE MARKET
No full textWe study price-setting behavior in the Indonesian online market before and during the COVID-19 pandemic. We surveyed 297 online and offline markets dominated by micro and small enterprises (MSEs). The results show that the online market’s price-setting behaviors apply state-dependent pricing rules and price discrimination, evaluate prices more than once a year based on current information, and immediately respond to a shock. The main factor for price changes is input cost change. Meanwhile, price rigidities are influenced by implicit contracts. The probit model shows online markets face the high-competitive market, not applying a rule of thumb pricing, and frequently changing prices regarding shock
Buletin Ekonomi Moneter dan Perbankan : Volume 15, Nomor 3, Januari 2013
No full textDaftar Isi :Analisis Triwulanan : Perkembangan Moneter, Perbankan dan Sistem Pembayaran Triwulan IV - 2012Tim Penulis Laporan Triwulanan, Bank IndonesiaRisk Taking Behavior of Indonesian Banks : Analysis On The Impact of Deposit Insurance Corporation EstablishmentMoch Doddy Ariefianto, Soenartomo SoepomoCapital Flows Di Indonesia : Perilaku, Peran, dan Optimalitas Penggunaanya Bagi PerekonomianFiskara Indawan, Sri Fitriani, Meily Ika Permata, Indriani KarlinaThe Role of ASEAN Exchange Rate Unit (AERU) for ASEAN-5 Monetary Integration : An Optimum Currency Area CriteriaDimas Bagus Wiranata Kusuma, Syed mohammed Abu Ashif, Ali Musa Harahap, Muhammad Alam OmarsyahPengaruh Krisis Ekonomi Amerika Serikat Terhadap Bursa Saham dan Perdagangan IndonesiaMita Nezky106hlm.;18x25c
CAPITAL FLOWS DI INDONESIA: PERILAKU, PERAN, DAN OPTIMALITAS PENGGUNAANNYA BAGI PEREKONOMIAN
No full textBerlimpahnya likuiditas global paska krisis global mengakibatkan membanjirnya aliran modal internasional ke pasar Surat Utang Negara (SUN). Selain bermanfaat, aliran modal asing tersebut,berpotensi menimbul risiko pembalikan aliran modal asing yang dapat menimbulkan ketidakstabilan di pasar keuangan domestik. Paper ini menganalisis faktor-faktor yang mempengaruhi keputusan investasi investor asing, yang mencakup faktor risiko dan return yang berasal dari domestik (pull factor) dan global (push factor). Hasil pengujian menunjukkan push factor sangat berperan mempengaruhi perilaku investor asing di pasar SUN. Bagi investor long-term, perilaku mereka untuk menempatkan dananya di pasar SUN dipengaruhi push factor, tetapi tidak dipengaruhi secara signifikan oleh pull factor. Namun bagi investor short-term, baik pull maupun push factor, mempengaruhi keputusan investasi mereka. Selain itu hasil simulasi menunjukkan bahwa ke depan, prospek investor asing di pasar SUN masih menghadapi tantangan khususnya dari sisi volatilitas yang relatif tinggi sebagai akibat dari sensitifnya investor asing terhadap shock yang sewaktu-waktu dapat terjadi di tengah ketidakpastian kondisi pasar keuangan internasional akibat penyelesaian krisis utang di negara maju yang berlarut-larut. Dalam hal ini, Bank Indonesia dan Pemerintah perlu terus mempertahankan upaya untuk menjaga dan mengelola return dan risiko investasi di dalam negeri pada level yang lebih kompetitif dan relatif rendah dengan menjaga kekuatan dan ketangguhan perekonomian serta stabilitas keuangan domestik.
Keywords : Foreign Exchange, International Lending, Corporate Finance.
JEL Classification : F31, F34, G
Capital Flows in Indonesia: the Behavior, the Role, and Its Optimality Uses for the Economy
No full textThe abundance of global liquidity post the global crisis resulted in a huge amount of international capital flows to Government Securities (GS) market. Besides useful, the flow of foreign capital potentially give a risk reversal that may leads to instability in domestic financial market. This paper analyzes the determinant of foreign investors including the risk and returns, both from domestic (pull factor) as well as from global (push factor). The result shows that the push factor was instrumentally influence the behavior of foreign investors in the GS (Government Securities) market. For long-term investors, their behavior to place their funds in GS market is influenced by push factor, but not significantly affected by the pull factor. However, for short-term investors, both pull and push factors influence their investment decisions. In addition simulation results indicate that in the future, the prospect of foreign investors in the securities market still faces challenges, particularly from the relatively high volatility as a result of the shock sensitivity of foreign investors on shock that can happen in the uncertainty in the international financial markets due to ongoing debt crisis resolution in developed countries.Concerning these findings, Bank Indonesia and the government needs to maintain and manage the returns and risks of domestic investment on a more competitive and relatively low level by maintaining the strength and resilience of the domestic economy and financial stability.
Keywords : Foreign Exchange, International Lending, Corporate Finance.
JEL Classification : F31, F34, G
THE ROLE OF CURRENCY HEDGING ON FIRM PERFORMANCE: A PANEL DATA EVIDENCE IN INDONESIA
No full textThis paper analyzes the role of currency hedging on non-financial firm’s performance. Most firms on the sample have anticipated the currency mismatch risk by balancing the ratio of foreign debt to their asset fenominated in foreign currency. Using panel estimation, we find that there is no evidence of currency hedging activities to affect capital and performance of firms. The result underlines the low intensity of currency hedging activities due to lack of incentives, which is inline with the low derivative transaction within the underdeveloped foreign currency market. This finding may raise a concern since currently the development of foreign liabilities for non-financial firmsin Indonesia is increasing in significant level, as well as the increase risk of domestic currency depreciation. For these reasons, Bank Indonesia should take proactive policies to deepen foreign currency market as well as derivative market by providing a more comprehensive and market friendly hedging instruments to banks and non-financial firms, while keep promoting the benefit of currency hedging.
Keywords: Hedging, derivative market, foreign liability.
JEL Classification: F31, G3
Global uncertainty and economic growth–evidence from pandemic periods
No full textThis paper investigates whether global uncertainty predicts economic growth rates using a global sample of 136 countries. We use the panel regression model and find strong evidence that global uncertainty negatively predicts the economic growth rate. Further, the negative impact of global uncertainty on economic growth rates is amplified during pandemic periods versus non-pandemic periods. Our main findings hold after a range of robustness tests
How to Maximize Wealth Growth and Accumulation to Save Financial Issue Mr. Piyau
No full textNumber of wealthy people increases significantly, in which their net worth is
around or more than US$ 1 million. This number forecasted will increase faster than
economic growth in Indonesia. These wealthy people facing kinds of financial issues
such as how to maintaining their asset, protect their wealth from the inflation and so on.
In this research Mr. Piyau having issues related how to maximizing his assets since most
of them are invested into less liquid and un-productive property. In the other side, this
condition bring the client missing opportunity to invest his wealth within more liquid
instrument, in which higher return might can be received. This study focuses on the
strategy of maximizing wealth growth for a HNWI client based on the client�s risk
tolerance, financial data, financial goals constraints, because wealth management is a part
of financial management which is personally appointed to the people at least in term of
maintaining and advising net worth assets, meaning the recommendation given to the
client wished not only fulfill the expected return but also the degree of risk that the client
can tolerate. The recommendation should provide solution to the client�s problem in
dealing with shifting his less liquid and unproductive assets in to more profitable
investment. From client�s financial data there are financial weaknesses that can be
identified. Financial issues that can be identified are classified into a weakness of client�s
balance sheet and statement of cash flow, in which the result of low diversified types of
assets and those assets have positive correlation so that return of portfolio cannot be
maximized.
Furthermore, in term of investing his money the client never and do not know
about his personal risk profile/tolerance so his financial asset only invested on saving
account. Furthermore, this condition actually not appropriate for the person who has
conservative moderate risk tolerance. There are three alternatives proposed by the author
to the client. The three alternatives provide higher percentage of return compared to
current wealth portfolio�s performance and has followed the financial asset proportion
defined by Wealth Management software that is adjusted to client�s risk profile. After
having a discussion with the client, the most preferable alternative is alternative number 3
since the alternative number 3 not only has the best performance based on coefficient of
variation and Sharpe ratio but also provides highest net worth growth. Client�s net worth
after one year of implementing alternative number 3 will increase became
Rp16,637,195,000.00 or in the other word increased by 17.88% from current net worth,
while client�s surplus after one year of implementing alternative number 3 would like to
increase his surplus up to will increase to Rp611,475,000 or increased by 88.274%
