Can social media visibility affect institutional ownership and trading consensus on sharia stocks?

Authors

  • Ahmad Hafiyyan Shibghatalloh Universitas Diponegoro
  • Sugeng Wahyudi Universitas Diponegoro
  • Noni Setyorini Universitas PGRI Semarang
  • Abdulhamid Ali Abukil Elmergib University

DOI:

https://doi.org/10.21580/jiafr.2023.5.1.14874

Keywords:

like, comment, trading consensus, institutional ownership, sharia stock

Abstract

Purpose - This study aims to examine the effect of Instagram users’ responses to corporate Instagram post (Likes and Comments) toward trading consensus and institutional ownership of sharia stocks in Indonesia.

Method - This study used purposive sampling technique. The number of samples in this study were 158 companies registered in ISSI (Indonesia Sharia Stock Index) and having an active Instagram account. Data processing using SPSS.26 with Ordinary Least Square (OLS).

Result - The results showed that Instagram users’ responses increased the institutional investor and individual investor in sharia stock. The interpretation for this findings that such Instagram activities increase the visibility of the company across a more diverse group of investors. This increase visibility makes information more accessible to individual and institutional investors, so that they are attracted to invest more in sharia stock.

Implication - Sharia issuer companies should also use social media to provide valid information to potential investors. So that it can be one of the foundations of investors in choosing Islamic stocks.

Originality - This research is the first study that used social media to measure sharia stock ownership.

Downloads

Download data is not yet available.

References

Bank, S., Erdogan, E., & Sivri, U. (2019). Can social media marketing lead to abnormal portfolio returns ? European Research on Management and Business Economics, 25(2), 54–62. https://doi.org/10.1016/j.iedeen.2019.04.006

Bartov, E., Faurel, L., & Mohanram, P. S. (2018). Can twitter help predict firm-level earnings and stock returns? Accounting Review, 93(3), 25–57. https://doi.org/10.2308/accr-51865

Bergh, D. D., Connelly, B. L., Ketchen, D. J., & Shannon, L. M. (2014). Signalling theory and equilibrium in strategic management research: An assessment and a research agenda. Journal of Management Studies, 51(8), 1334–1360. https://doi.org/10.1111/joms.12097

Berndt, A. E. (2020). Sampling Methods. Journal of Human Lactation, 36(2), 224–226. https://doi.org/10.1177/0890334420906850

Blankespoor, E., Miller, G. S., & White, H. D. (2012). Dissemination, Direct-Access Information Technology and Information Asymmetry. SSRN Electronic Journal, March. https://doi.org/10.2139/ssrn.1657169

Bushee, B. J., & Miller, G. S. (2012). Investor Relations, Firm Visibility, and Investor Following. 87(3), 867–897. https://doi.org/10.2308/accr-10211

Cade, N. L. (2018a). Accounting , Organizations and Society Corporate social media : How two-way disclosure channels in fl uence. March. https://doi.org/10.1016/j.aos.2018.03.004

Cade, N. L. (2018b). Corporate social media: How two-way disclosure channels influence investors. Accounting, Organizations and Society, 68–69(March 2017), 63–79. https://doi.org/10.1016/j.aos.2018.03.004

Chadijah, S. (2010). Analisis Pengaruh Harga, Volume Perdagangan, Return, Frekuensi Perdagangan, Dan Volatilitas Harga Saham Terhadap Bid Ask Spread Perusahaan Yang Melakukan Stock Split.

Cremades, A. (2016). The art of startup fundraising : pitching investors, negotiating the deal, and everything else entrepreneurs need to know.

Djohanputro, B. (2015). Market Return, Volatility and Trading Volume Dynamics After Economic Crisis. Jurnal Ekonomi & Bisnis Indonesia (Fakultas Ekonomi Dan Bisnis Universitas Gadjah Mada), 26(3), 325–340. https://doi.org/10.22146/jieb.6261

Gerlitz, C., & Helmond, A. (2013). The like economy : Social buttons and the data-intensive web. New Media & Society, 15(8), 1348–1365. https://doi.org/10.1177/1461444812472322

Griffin, J. M., Hirschey, N. H., & Kelly, P. J. (2014). How Important Is the Financial Media in Global Markets ? How Important are the Financial Media in Global Markets ? . May. https://doi.org/10.2307/41302005

Grullon, G. (2014). Advertising , Breadth of Ownership , and Liquidity by and. February 2004. https://doi.org/10.1093/rfs/hhg039

Grullon, G., Kanatas, G., & Weston, J. P. (2004). Advertising, breadth of ownership, and liquidity. Review of Financial Studies, 17(2), 439–461. https://doi.org/10.1093/rfs/hhg039

Hasan, R., & Wang, W. (2017). Social Network Activities , Future Earnings , and Equity Values. 17(1), 58–72.

Hasan, R., & Wang, W. (2019). Social media visibility , investor diversity and trading consensus visibility. https://doi.org/10.1108/IJMF-11-2019-0445

Hasan, R., & Wang, W. (2020). Social media visibility, investor diversity and trading consensus. International Journal of Managerial Finance, 17(1), 25–48. https://doi.org/10.1108/IJMF-11-2019-0445

Maulita, D., & Arifin, M. (2018). Pengaruh Return on Investment (ROI) Dan Earning Per Share (EPS) Terhadap Return Saham Syariah. Jurnal Manajemen, 8(1), 42–59. https://e-jurnal.lppmunsera.org/index.php/JM/article/download/659/647

Naufa, A. M., Lantara, I. W. N., & Lau, W. Y. (2019). The impact of foreign ownership on return volatility, volume, and stock risks: Evidence from ASEAN countries. Economic Analysis and Policy, 64, 221–235. https://doi.org/10.1016/j.eap.2019.09.002

Nguyen, H., Calantone, R., & Krishnan, R. (2020). Influence of social media emotional word of mouth on institutional investors’ decisions and firm value. Management Science, 66(2), 887–910. https://doi.org/10.1287/mnsc.2018.3226

Nofsinger, J. R., & Nofsinger, J. R. (2010). Social Mood and Financial Economics Social Mood and Financial Economics. Journal of Behavioral Finance, 6(May 2013), 37–41.

Paul C. Tetlock. (2010). Does Public Financial News Resolve Asymmetric Information? The Review of Financial Studies, 23(9), 3520–3557.

Peeters, E. R., Akkermans, J., & De Cuyper, N. (2020). The Only Constant Is Change? Movement Capital and Perceived Employability. Journal of Career Assessment, 28(4), 674–692. https://doi.org/10.1177/1069072720918195

Rhee, S. G., & Wang, J. (2009). Foreign institutional ownership and stock market liquidity: Evidence from Indonesia. Journal of Banking and Finance, 33(7), 1312–1324. https://doi.org/10.1016/j.jbankfin.2009.01.008

Tm, T., Blankespoor, E., & Miller, G. S. (2014). The Role of Dissemination in Market Liquidity : Evidence from Firms ’ Use of The Role of Dissemination in Market Liquidity : Evidence From Firms ’ Use of Twitter. March. https://doi.org/10.2139/ssrn.1657169

To, A. T., Suzuki, Y., Vuong, B. N., Tran, Q. T., & Do, K. (2019). Foreign ownership and stock return volatility in Vietnam: The destabilizing role of firm size. In Organizations and Markets in Emerging Economies (Vol. 10, Issue 2, pp. 356–377). https://doi.org/10.15388/omee.2019.10.18

Trafalgar, J., & Africa, L. A. (2019). The effect of capital structure, institutional ownership, managerial ownership, and profitability on company value in manufacturing companies. The Indonesian Accounting Review, 9(1), 27. https://doi.org/10.14414/tiar.v9i1.1619

Wang, J.-X. (2011). Foreign Ownership and Volatility Dynamics of Indonesian Stocks. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1008665

Xie, F., Anderson, H. D., Chi, J., & Liao, J. (2019). Does residual state ownership increase stock return volatility? Evidence from china’s secondary privatization. Journal of Banking and Finance, 100, 234–251. https://doi.org/10.1016/j.jbankfin.2019.01.012

Downloads

Published

2023-03-31

Issue

Vol. 5 No. 1 (2023)

Section

Articles

License

The copyright of the received article shall be assigned to the journal as the publisher of the journal. The intended copyright includes the right to publish the article in various forms (including reprints). The journal maintains the publishing rights to the published articles. Authors are allowed to use their articles for any legal purposes deemed necessary without written permission from the journal with an acknowledgment of initial publication to this journal.

The work under license Creative Commons Attribution License