Open AccessRetail Investor Attention, Foreign Investors and Crash Risk: Evidence on Indonesian Shariah-compliant Equities
Author(s) -
Aang Kunaifi,
Geodita Woro Bramanti,
Muhammad Ibnu Sina Al Hanif
Publication year - 2021
Publication title -
procedia business and financial technology
Language(s) - English
Resource type - Journals
ISSN - 2807-131X
DOI - 10.47494/pbft.2021.1.25
Subject(s) - business , indonesian , crash , stock price , capital market , stock (firearms) , monetary economics , financial system , finance , economics , mechanical engineering , paleontology , philosophy , linguistics , series (stratigraphy) , computer science , engineering , biology , programming language
This study analyzes how retail investor attention and foreign investors are related to stock price crash risk in shariah-compliant equities. Using quarterly data in Islamic stocks that listed on the Indonesian Capital Market during 2016- 2019, we show that retail investor attention and foreign investors are negatively associated with stock price crash risk. The retail investor attention and foreign investors diminish stock price crash risk in shariah-compliant equities. In conclusion, the benefit of active attention that retail investor pay and increasing foreign investor mitigate crash risk in shariah-compliant equities