Analysis of Factors Affecting Bond Prices Traded on Indonesia Stock Exchange in the Period 2016-2018


Authors : Hastri Nurdianti; Bambang Santoso Marsoem

Volume/Issue : Volume 5 - 2020, Issue 8 - August

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/3gRXdV1

DOI : 10.38124/IJISRT20AUG581

This study aims to analyze the effect of Coupons, Maturity Period, Current Ratio and Bond Rating on corporate bond prices. The study population consists of corporate bonds traded on the Indonesia Stock Exchange for the period 2016-2018. The sample selection technique was carried out by purposive sampling. The research sample consisted of 45 corporate bonds issued by 20 companies from all sectors except the banking and financial sectors. The research analysis method used is descriptive statistics and Common Effect Model (CEM) panel data regression. The results showed that partially the Coupon, Maturity Period and Bond Rating variables had a significant positive effect on Bond Prices, while the Current Ratio variable had a significant negative effect on Bond Prices. The implication of this research is that companies as bond issuers are advised to pay attention to the factors that affect bond prices, especially coupons, maturity and bond ratings in order to provide an appropriate price release for the bonds issued. By paying attention to factors, one of which is increasing the bond rating can maintain investor confidence. This is because these variables are proven to have an effect on Bond Prices. For further research, it is expected to study other variables that affect bond prices because the coefficient of determination of this study is 67%, meaning that there are 33% variations in bond prices explained by other variables outside of the study.

Keywords : Coupons, Maturity Period, Current Ratio, Bond Rating, Bond Price

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