Sharfina, Erica and Lingga, Margaretha Tiur Pasuria (2018) The Impact Of Industry Concentration On The Stock Return Of Construction Firms In Indonesia. Bachelor thesis, Swiss German University.

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Abstract

Over the last few years there has been an emphasis on wanting to improve Indonesia’s infrastructure, which then lead to the speculation of effects towards the stock return of the oligopolistic construction industry in Indonesia. This research aims to investigate the relationship of the industry concentration of listed construction firms in Indonesia with its stock returns. The researcher uses two groups of control variables: firm-specific and macroeconomic control variables. As the data is a balanced panel data, the researcher runs several tests to determine the model which best matches the panel data. The results showed that the most fitting model to be used in analyzing the data was Ordinary Least Squares. After controlling the firm-specific variables, the industry concentration is shown to have a significant negative relationship with stock returns. Furthermore, after controlling both firm-specific and macroeconomic variables, the relationship between industry concentration and stock returns remains negatively significant at significance level of 10%. A negative relationship indicates that the more concentrated the industry, the lower the stock returns offered by the firms. While the significant relationship signifies that the industry concentration can explain the stock returns of firms within the industry. It is recommended that firms take note of the market share, macroeconomic factors and concentration before making any strategic decision.

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Industry Concentration; Stock Returns; Construction Industry
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD9715 Construction industry H Social Sciences > HG Finance > HG4551 Stock exchanges
Divisions:	Faculty of Business Administration and Communication > Department of Business Administration
Depositing User:	Astuti Kusumaningrum
Date Deposited:	19 May 2020 02:53
Last Modified:	19 May 2020 02:53
URI:	http://repository.sgu.ac.id/id/eprint/547

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