Stock price analysis of sustainable foreign investment companies in Indonesia

Friendly City 4 'From Research to Implementation For Better Sustainability'

地球科学;经济学

Amalia Fachrudin, Khaira^1

Management Department, Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia^1

关键词: Analysis tools;    Demand and supply;    Environmental sustainability;    Foreign investment;    Logistic regressions;    Research results;    Sustainability index;    Sustainable investments;   

Others  :  https://iopscience.iop.org/article/10.1088/1755-1315/126/1/012069/pdf
DOI  :  10.1088/1755-1315/126/1/012069

来源: IOP

【 摘 要 】

The stock price is determined by demand and supply in the stock market. Stock price reacts to information. Sustainable investment is an investment that considers environmental sustainability and human rights. This study aims to predict the probability of above average stock price by including the sustainability index as one of its variables. The population is all foreign investment companies in Indonesia. The target population is companies that distribute dividends - also as a sample. The analysis tool is a logistic regression. At 5% alpha, it was found that sustainability index did not have the probability to increase stock price average. The significant effects are free cash flow and cost of debt. However, sustainability index can increase the Negelkarke R square. The implication is that the awareness of sustainability is still necesary to be improved because from the research result it can be seen that investors only consider the risk and return.