Studying investor rationality on stock price: A case of Bank Syariah Indonesia
Purpose – This study aims to analyze the behavior of investors' investment decisions, as reflected in the volatility of stock prices, especially at PT Bank Syariah Indonesia Tbk (BSI). The analysis here compares aspects of rationality and irrationality as well as their relationship with the st...
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| Format: | Article |
| Language: | English |
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Center for Islamic Economics Studies and Development
2025-01-01
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| Series: | Jurnal Ekonomi dan Keuangan Islam |
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| Online Access: | https://journal.uii.ac.id/JEKI/article/view/36296 |
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| author | Hafidz Yudhanto Kresnaputra An'im Kafabih |
| author_facet | Hafidz Yudhanto Kresnaputra An'im Kafabih |
| author_sort | Hafidz Yudhanto Kresnaputra |
| collection | DOAJ |
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Purpose – This study aims to analyze the behavior of investors' investment decisions, as reflected in the volatility of stock prices, especially at PT Bank Syariah Indonesia Tbk (BSI). The analysis here compares aspects of rationality and irrationality as well as their relationship with the stock prices of Bank Syariah Indonesia.
Methodology – This study uses the Autoregressive Distributed Lag (ARDL) method to test aspects of rationality proxied by Price-to-Book Value (PBV) and Price-to-Earnings Ratio (PER), while aspects of irrationality proxied by mood sentiment (SWAV). Data were collected from February 2021 to February 2024 on a monthly basis, resulting in 37 research samples.
Findings – The results show that PBV, PER, and mood sentiment have a significant effect on BSI stock prices. In the long term, PBV has a positive effect, while PER and mood sentiment have negative effects on BSI stock prices. In this situation, mood sentiment has the greatest influence on BSI stock prices, indicating that the volatility of BSI stocks is driven by irrationality.
Implications – As the stock price is driven mostly by irrationality, investors must have fundamental and macroeconomic analysis skills as well as expertise when buying and selling stocks in order to minimize losses due to the irrational behavior. In addition, regulators and companies must provide transparent and accurate information to investors to reduce the irrational behavior.
Originality – This study modifies the objective of Islamic banks’ stock prices in Indonesia by elaborating rational and irrational factors as the determinants of stock prices.
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| format | Article |
| id | doaj-art-f612f693fe8a446cae90d5a69b4c5693 |
| institution | Kabale University |
| issn | 2088-9968 2614-6908 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Center for Islamic Economics Studies and Development |
| record_format | Article |
| series | Jurnal Ekonomi dan Keuangan Islam |
| spelling | doaj-art-f612f693fe8a446cae90d5a69b4c56932025-01-24T08:56:27ZengCenter for Islamic Economics Studies and DevelopmentJurnal Ekonomi dan Keuangan Islam2088-99682614-69082025-01-0111110.20885/JEKI.vol11.iss1.art7Studying investor rationality on stock price: A case of Bank Syariah IndonesiaHafidz Yudhanto Kresnaputra0An'im Kafabih1Islamic Economics Study Program, Faculty of Economics and Business, Universitas Diponegoro, Semarang, IndonesiaIslamic Economics Study Program, Faculty of Economics and Business, Universitas Diponegoro, Semarang, Indonesia Purpose – This study aims to analyze the behavior of investors' investment decisions, as reflected in the volatility of stock prices, especially at PT Bank Syariah Indonesia Tbk (BSI). The analysis here compares aspects of rationality and irrationality as well as their relationship with the stock prices of Bank Syariah Indonesia. Methodology – This study uses the Autoregressive Distributed Lag (ARDL) method to test aspects of rationality proxied by Price-to-Book Value (PBV) and Price-to-Earnings Ratio (PER), while aspects of irrationality proxied by mood sentiment (SWAV). Data were collected from February 2021 to February 2024 on a monthly basis, resulting in 37 research samples. Findings – The results show that PBV, PER, and mood sentiment have a significant effect on BSI stock prices. In the long term, PBV has a positive effect, while PER and mood sentiment have negative effects on BSI stock prices. In this situation, mood sentiment has the greatest influence on BSI stock prices, indicating that the volatility of BSI stocks is driven by irrationality. Implications – As the stock price is driven mostly by irrationality, investors must have fundamental and macroeconomic analysis skills as well as expertise when buying and selling stocks in order to minimize losses due to the irrational behavior. In addition, regulators and companies must provide transparent and accurate information to investors to reduce the irrational behavior. Originality – This study modifies the objective of Islamic banks’ stock prices in Indonesia by elaborating rational and irrational factors as the determinants of stock prices. https://journal.uii.ac.id/JEKI/article/view/36296PBV, PER, Mood sentiment, Stock pricePBVPERMood sentimentStock Price |
| spellingShingle | Hafidz Yudhanto Kresnaputra An'im Kafabih Studying investor rationality on stock price: A case of Bank Syariah Indonesia Jurnal Ekonomi dan Keuangan Islam PBV, PER, Mood sentiment, Stock price PBV PER Mood sentiment Stock Price |
| title | Studying investor rationality on stock price: A case of Bank Syariah Indonesia |
| title_full | Studying investor rationality on stock price: A case of Bank Syariah Indonesia |
| title_fullStr | Studying investor rationality on stock price: A case of Bank Syariah Indonesia |
| title_full_unstemmed | Studying investor rationality on stock price: A case of Bank Syariah Indonesia |
| title_short | Studying investor rationality on stock price: A case of Bank Syariah Indonesia |
| title_sort | studying investor rationality on stock price a case of bank syariah indonesia |
| topic | PBV, PER, Mood sentiment, Stock price PBV PER Mood sentiment Stock Price |
| url | https://journal.uii.ac.id/JEKI/article/view/36296 |
| work_keys_str_mv | AT hafidzyudhantokresnaputra studyinginvestorrationalityonstockpriceacaseofbanksyariahindonesia AT animkafabih studyinginvestorrationalityonstockpriceacaseofbanksyariahindonesia |