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| Field |
Value |
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| Title |
The Impact of Pre-closing Implementation to Price Efficiency in Indonesia Stock Exchange
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| Creator |
Gilang Praditiyo; Fund Management Division, AJB Bumiputera 1912
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| Subject |
—
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| Description |
Indonesia Stock Exchange has really concerned about improving stock market quality these days. One of the effort is pre-closing trading session implementation. It refers to Decision of the Board of Directors of The Indonesia Stock Exchange Number Kep-00399/BEI/11-2012, regarding Amendment to Rule Number II-A concerning Equity-Type Securities Trading. The rule is effective on 2nd Januar, 2013 and Indonesia Stock Exchange has implemented it since that date. The purposes of pre-closing implementation are to mitigate marking the close, which is the practice of buying security at the very end of the trading day at a significantly higher price than the current price of the security, and to improve market quality. This paper attempts to veryfy whether the impact of pre-closing implementation to price efficiency is positive or not. The result shows that the pre-closing implementation has the positive impact to price efficiency. It reduces the return volatility and market manipulation at the closing time which also means that the pre-closing implementation has effectively improved market quality in Indonesia Stock Exchange. Keywords:Pre-closing, price manipulation, marking the close, volatility, price efficiency.
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| Publisher |
Management Research Center, Department of Management, Faculty of Economics and Business, U
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| Contributor |
—
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| Date |
2014-01-01
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| Type |
Peer-reviewed Article
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| Format |
image/ipeg
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| Identifier |
http://journal.ui.ac.id/index.php/icmr/article/view/2986
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| Source |
Indonesian Capital Market Review; Vol 6, No 1 (2014): January 2014
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| Language |
en
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Since 2014