IDEAS home Printed from https://ideas.repec.org/a/ags/pdcbeh/285113.html
   My bibliography  Save this article

Determinants of Indonesian corporate bond yield

Author

Listed:
  • Simu, Nicodemus

Abstract

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 recent 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.

Suggested Citation

  • Simu, Nicodemus, 2017. "Determinants of Indonesian corporate bond yield," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(5), October.
    • Handle: RePEc:ags:pdcbeh:285113
    DOI: 10.22004/ag.econ.285113
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/285113/files/Simu.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.285113?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Verner, Robert & Tkáč, Michal, 2023. "On the predictability of bonds," Finance Research Letters, Elsevier, vol. 57(C).
    2. Rao, Amar & Kumar, Satish & Gupta, Prashant & Dash, Saumya Ranjan, 2024. "Quantifying the impact of interest rate volatility on Asian energy companies: A comparative study of fossil and renewable sectors," Energy Economics, Elsevier, vol. 133(C).

    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pdcbeh:285113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/pradecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.