Is information asymmetry the ground of investor sentiment in the Indonesian capital market?

Wijaya, Liliana Inggrit and Narsa, I Made and Irwanto, Andry and Setiawan, Rahmat (2022) Is information asymmetry the ground of investor sentiment in the Indonesian capital market? International Journal of Business and Globalisation, 32 (1). pp. 78-95. ISSN online 1753-3635; ISSN print 1753-3627

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Abstract

'Information asymmetry premium' is used to get an answer to what underlies the emergence of investor sentiment on dividends on the capital market. Previous research are only able to prove that 'dividend premium', which acted as investor sentiment on dividend, affected dividend policy. However, the conditions underlying the emergence of investor sentiment on dividends have not yet been answered. This research aims to prove that investors do put sentiment toward companies who pay dividend because dividend payers' information asymmetry is higher than dividend non-payers', and vice versa. This research uses binary logistic regression and panel least square on unbalanced data. The results can prove that dividend premium is a subset of information asymmetry premium in confirming investor sentiment on dividends toward the propensity to pay dividends. It is proven that the basis for dividend payment is driven by investor sentiment that was formed because of high information asymmetry.

Item Type:	Article
Uncontrolled Keywords:	dividend premium; sentiment investor; information asymmetry premium; IAP
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Business and Economic > Department of Management
Depositing User:	Ester Sri W. 196039
Date Deposited:	05 Dec 2022 05:24
Last Modified:	31 Aug 2023 03:03
URI:	http://repository.ubaya.ac.id/id/eprint/42921

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