The Role of Institutional Ownership in Synchronism of Stock Prices

Oct 13, 2025 by talynt.org 129 views

The Influence of Independent Commissioners, Managerial Capabilities, Institutional Ownership, and Company Size on the Synchronism of Stock Prices in Property and Real Estate Companies Listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 Period

Introduction

In the world of investment, the synchronism of stock prices is a crucial indicator that measures the extent to which a company's share price movements are correlated with each other. This study aims to explore the influence of several key factors - independent commissioners, managerial capabilities, institutional ownership, and company size - on the synchronism of stock prices in property and real estate companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 period. The study used secondary data from the IDX and involved 22 companies selected through purposive sampling techniques from a total of 92 existing companies.

Research Methodology

In this study, the data used was collected from the official website of the Indonesia Stock Exchange. The analysis techniques applied include descriptive statistical analysis, classical assumption test, panel data regression analysis, and hypothesis testing. With this approach, researchers can identify the patterns and influence of each factor on the synchronism of stock prices.

Research Result

The results of the analysis showed that partially, independent commissioners, managerial capabilities, and company size had no significant effect on the synchronism of stock prices. However, there are interesting findings related to institutional ownership that show a positive influence on the synchronism of stock prices. This indicates that companies with higher institutional ownership levels tend to have a more synchronous stock price, meaning that the company's stock price movement is more integrated with the overall stock price movement in the market.

The Role of Institutional Ownership in Synchronism of Stock Prices

The effect of institutional ownership on the synchronism of stock prices can be explained through the active role of institutions in influencing the company's decisions and strategies. Ownership by large institutions often leads to increasing transparency and accountability in management, which in turn can reduce asymmetrical information between managers and investors. When better information is available on the market, investors can conduct more appropriate analysis, thereby increasing the synchronism of stock prices.

The Limited Influence of Independent Commissioners, Managerial Ability, and Company Size

Conversely, the absence of a significant influence of the independent commissioner, managerial ability, and company size on the synchronism of stock prices may indicate that these factors do not have a direct impact on how stock prices move in a broader market context. This opens space for further research on other variables that may contribute to the dynamics of stock prices.

Conclusion

This study provides an important insight into the factors that affect the synchronism of stock prices in the property and real estate sectors in Indonesia. The findings that institutional ownership has a positive influence to show the importance of the role of institutional investors in increasing market efficiency. However, the need for further research to understand other factors that can contribute to this dynamics is very clear. With a deeper understanding, it is expected that companies can optimize managerial and ownership strategies to achieve better market performance.

Implications for Investors and Companies

The findings of this study have significant implications for investors and companies. For investors, the study highlights the importance of considering institutional ownership when making investment decisions. Companies with higher institutional ownership levels tend to have more synchronous stock prices, indicating a lower risk of investment. For companies, the study suggests that increasing institutional ownership can lead to increased transparency and accountability in management, which can in turn reduce asymmetrical information between managers and investors.

Limitations and Future Research Directions

This study has several limitations that need to be addressed in future research. Firstly, the study only considered the property and real estate sectors in Indonesia, and future research can explore other sectors and countries. Secondly, the study only considered institutional ownership as a factor, and future research can explore other factors that may contribute to the dynamics of stock prices. Finally, the study only used secondary data, and future research can use primary data to gain a deeper understanding of the factors that affect the synchronism of stock prices.

Conclusion

Recommendations for Future Research

Based on the findings of this study, several recommendations can be made for future research. Firstly, future research can explore other sectors and countries to gain a deeper understanding of the factors that affect the synchronism of stock prices. Secondly, future research can explore other factors that may contribute to the dynamics of stock prices, such as corporate governance, financial reporting, and market conditions. Finally, future research can use primary data to gain a deeper understanding of the factors that affect the synchronism of stock prices.

Conclusion

In conclusion, this study provides an important insight into the factors that affect the synchronism of stock prices in the property and real estate sectors in Indonesia. The findings that institutional ownership has a positive influence to show the importance of the role of institutional investors in increasing market efficiency. However, the need for further research to understand other factors that can contribute to this dynamics is very clear. With a deeper understanding, it is expected that companies can optimize managerial and ownership strategies to achieve better market performance.
Q&A: The Influence of Independent Commissioners, Managerial Capabilities, Institutional Ownership, and Company Size on the Synchronism of Stock Prices in Property and Real Estate Companies Listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 Period

Q: What is the synchronism of stock prices, and why is it important?

A: The synchronism of stock prices refers to the extent to which a company's share price movements are correlated with each other. It is an important indicator of market efficiency and can affect investment decisions.

Q: What are the key factors that affect the synchronism of stock prices?

A: The key factors that affect the synchronism of stock prices include independent commissioners, managerial capabilities, institutional ownership, and company size.

Q: What is the role of independent commissioners in the synchronism of stock prices?

A: Independent commissioners play a crucial role in ensuring that companies are managed in a transparent and accountable manner. However, the study found that independent commissioners have no significant influence on the synchronism of stock prices.

Q: What is the role of managerial capabilities in the synchronism of stock prices?

A: Managerial capabilities refer to the skills and expertise of a company's management team. The study found that managerial capabilities have no significant influence on the synchronism of stock prices.

Q: What is the role of institutional ownership in the synchronism of stock prices?

A: Institutional ownership refers to the ownership of a company by large institutions such as pension funds, insurance companies, and mutual funds. The study found that institutional ownership has a positive influence on the synchronism of stock prices, indicating that companies with higher institutional ownership levels tend to have more synchronous stock prices.

Q: What is the role of company size in the synchronism of stock prices?

A: Company size refers to the market capitalization of a company. The study found that company size has no significant influence on the synchronism of stock prices.

Q: What are the implications of the study's findings for investors and companies?

A: The study's findings have significant implications for investors and companies. For investors, the study highlights the importance of considering institutional ownership when making investment decisions. For companies, the study suggests that increasing institutional ownership can lead to increased transparency and accountability in management, which can in turn reduce asymmetrical information between managers and investors.

Q: What are the limitations of the study, and what are the recommendations for future research?

A: The study has several limitations, including the use of secondary data and the focus on the property and real estate sectors in Indonesia. Future research can explore other sectors and countries, and use primary data to gain a deeper understanding of the factors that affect the synchronism of stock prices.

Q: What are the potential applications of the study's findings?

A: The study's findings have potential applications in the fields of finance, accounting, and business. For example, the study's findings can be used to inform investment decisions, improve corporate governance, and enhance market efficiency.

Q: What are the future research directions based on the study's findings?

A: Future research can explore other factors that may contribute to the dynamics of stock prices, such as corporate governance, financial reporting, and market conditions. Additionally, future research can use primary data to gain a deeper understanding of the factors that affect the synchronism of stock prices.

Q: What are the conclusions of the study?

A: The study provides an important insight into the factors that affect the synchronism of stock prices in the property and real estate sectors in Indonesia. The findings that institutional ownership has a positive influence to show the importance of the role of institutional investors in increasing market efficiency. However, the need for further research to understand other factors that can contribute to this dynamics is very clear. With a deeper understanding, it is expected that companies can optimize managerial and ownership strategies to achieve better market performance.