CEO Power and Stock Price: An Emperical Study of Indonesia Automotive and Components Listing Firms

1Gusni, Siti Komariah, Devy Mawarnie Puspitasari

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Abstract:

Relationhip between CEO power and stock price is still an interesting issue in the literature of corporate finance. The purpose of this study is to indentifies the effect of CEO power on the firms stock pricing. The study also interested to show factors that investors rely on to take their investment decisions in the automotive and components firms listed in the Indonesian capital market. This research using secondary data gathered from the official website of Indonesia Capital Market. In the way to fulfill the research objective, this study using a panel data analysis method in which the sample was taken from 12 firms by using a purposive sampling technique. The research finding was denoted that CEO power has strong effect on the firms stock price. Our finding important for the investor as information and consideration in making invstment decisions.

Keywords:

CEO power, stock price, automotive and components industry, capital market.

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages8104-8111