Analysis of Factors Affecting Yield to Maturity of Corporate Bonds Traded on Indonesia Stock Exchange 2016 - 2018


Authors : Ayu Asih Sintami; Bambang Santosoe Marsoem

Volume/Issue : Volume 5 - 2020, Issue 7 - July

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

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

DOI : 10.38124/IJISRT20JUL733

This study analyzes the influence of the variable Debt Equity Ratio (DER), Maturity, Firm Size and Bond Rating on the Yield To Maturity (YTM) of corporate bonds. The study population consists of corporate bonds traded on the Indonesia Stock Exchange period 2016-2018. The sample selection technique by purposive sampling. The research sample 43 corporate bonds issued by 18 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 DER variable had no effect on YTM, maturity had a significant positive effect on YTM, Firm Size and Bond Rating significant negative effect on YTM. The implication of this research is that companies need to improve their bond ratings to maintain investor confidence. In addition, is easier for companies with large assets to find external sources of funds through the issuance of bonds. This is because both are proven to have a negative effect on YTM. For further research, is expected to study other variables that affect YTM because the coefficient of determination in this study is 59%, and 41% is influenced by other variables not explained in this study.

Keywords : Debt to Equity Ratio, Maturity, Firm Size, Bond Rating and Yield To Maturity

CALL FOR PAPERS


Paper Submission Last Date
30 - November - 2021

Paper Review Notification
In 1-2 Days

Paper Publishing
In 2-3 Days

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe