| Paper Type | : | Research Paper |
| Title | : | Liquidity Determinants of Sharia and non-Sharia Stocks |
| Country | : | Indonesia |
| Authors | : | Muhammad Madyan, Ubud Salim, Muslich Anshori, Solimun |
 |
: | 10.9790/487X-0922838 |
Abstract: This study was conducted to analyze and test stock liquidity differences of sharia and non-sharia stock and determinants of sharia and non-sharia stock of manufacturing industry at Indonesia Stock Exchange in 2009-2010. Dependent variable of this study is stock liquidity, measured by relative spread and depth. The Independent variables are insider ownership, institutional ownership, blockholder ownership, and foreign institutional ownership, trading volume, stock price, return volatility, Market to book value, dividend policy and size. In addition, this research is also supported by qualitative data obtained from in-depth discussions with key informants, including investment managers, stock exchange institutions and stock brokers. The results showed there was no liquidity difference, both for relative spread and depth of sharia and non-sharia stocks. In sharia stocks, trading volume and dividend policy have a negative effect on relative spread, whereas in non sharia stocks the trading volume, stock prices and company size have a negative effect on relative spread. Institutional ownership has a negative effect, while foreign institutional ownership, trading volume, dividend policy, and size have a positive effect on sharia stock liquidity. For non sharia stock, the trading volume, stock prices and company size have a positive effect on depth.
Keyword: Sharia, Non Sharia, Relative Spread, Depth\
Source: http://www.iosrjournals.org/iosr-jbm/pages/v9i2.html
