RESIDUAL VALUE ANALYSIS POST-PRIVATIZATION OF JAKARTA STOCK EXCHANGE FROM AUGUST 1992 UNTIL JULY 1995)

Wijaya, Liliana Inggrit (2003) RESIDUAL VALUE ANALYSIS POST-PRIVATIZATION OF JAKARTA STOCK EXCHANGE FROM AUGUST 1992 UNTIL JULY 1995). Unitas, 12 (1). pp. 61-80. ISSN 0854-3097

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Abstract

The more-and-more efficient market shows the lessening difference between actual return and expected return on stocks being traded. In other words, the residual values are growing smaller. Such market brings in signals that the prices of stocks reflect all the necessary information suitable for the concept of the market efficiency itself. By making most use of all information available either in the form of regularly published reports or in any other relevant information on the movement of the capital market from year to year historically, it is highly expected that the efficiency be reached where the price has significance upon true fundamental values. The competition includes market participants as well as the competition in numbers and security. The steadily increasing informational efficiency results positively in the development of the upcoming market, namely bringing great credit to contribute to public interest. Naturally, the consequence is that there is more and more people involved in the market participating actively and thus each transaction is getting more competitive. In the end, illegal practices can be minimized and the market mechanism can roll forward propelled by the natural power of demand and supply for stocks expected having a prospect as provided by the available information.

Item Type: Article
Uncontrolled Keywords: informational efficiency, residual values, actual return, expected return.
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Business and Economic > Department of Management
Depositing User: Perpustakaan UBAYA
Date Deposited: 28 Nov 2011 08:42
Last Modified: 29 Nov 2011 06:41
URI: http://repository.ubaya.ac.id/id/eprint/32

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