RISIKO INVESTASI, BID-ASK SPREAD, DAN COST OF EQUITY CAPITAL DI PASAR MODAL INDONESIA

Agus Haryono, Edi Subiyantoro

Abstract


A number of studies investigated how financial information affected investment decisions. The study extended
this line of research by examining the effect of risk, proxied by price per share, number of shareholders, number
of dealers, trading volume, accounting risk and market risk measures on the bid ask spread. Further, the
research tried to test the relationship between bid ask spread and cost of equity capital. The samples of this
research were the manufacturing companies listed at Indonesian Stock Exchange which shared the dividend
for 3 years; there were 40 companies. Data analysis technique used multiple regression analysis. The results of
regression provided evidence of statistically significant effect of price per share, market value, asset size and
price variability on bid ask spread. At last, there was a positive relationship between bid ask spread and cost of
equity capital

Keywords


bid-ask spread, cost of equity capital, invesment risk

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