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2017 | Volume 13 | Issue 5 | 619-629
Article title

Determinants of Indonesian corporate bond yield

Authors
Content
Title variants
Languages of publication
EN
Abstracts
EN
Bonds are securities instruments quite attractive for investors. There are many factors that investors consider when going to invest in bonds market. A number of recents studies indicate that yield is one of the most commonly factors considered by investors. This study aims to identify the various factors that affect bond yields, as well as to explain the mechanisms by which each factors influence yields. The methodology of the research is to analyze secondary data available in Indonesian Bond Market Directory for the period of January 2015 - July 2016. Some statistic tools were used to analyze and interpret data, such as multiple linear regression analysis, coefficient of determination, and analysis of variance, and hypothesis testing using t-test. Based on data compiled from 67 companies and 138 bonds shows that bond maturity and coupon rate have a significant positive effect on bond yield. Instead, issuer's rating has a significant negative effect on bond yield. While on the other hand, liquidity does not give significant influence to bond yield.
Keywords
Year
Volume
Issue
Pages
619-629
Physical description
Dates
published
2017-11-12
Contributors
  • Faculty of Economics and Business, Perbanas Institute Jakarta
References
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Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.mhp-b5e764b0-127b-4635-acf2-dbb0476f9898
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