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Low capital market literacy in Indonesian society is the cause of the low investment value in the capital market. It led to the establishment of the Indonesia Stock Exchange (IDX) investment gallery (IG). Its existence as a means of education and socialization is expected to increase capital market inclusion. This study analyzes the impact of the IG’s existence on investment interest in the capital market by taking a sample of West Java as the province with Indonesia’s largest population. The authors find that the public interest in visiting IG increases every year by an average of 38%, this is accompanied by an increase in opening new accounts in the capital market, with an average increase of 48% each year. The statistical tests results show that the greater the number of IGs, the greater the number of transactions in the capital market (p < 0.05). The results of this research can certainly be an input for the IDX to increase the number and activities of IG throughout Indonesia to increase Indonesia’s economy through capital market literacy and inclusion, besides that this research also produces a structured and systematic capital market education model. The research results can also reference countries with developing capital markets to adopt the IDX policies in attracting investors, especially domestic investors.

The financial sector’s growing interest in leveraging artificial intelligence (AI) for forecasting has been noted in recent years. In this chapter, we delve into the application of AI in financial forecasting within Indonesia’s stock market. Our primary focus is to assess how AI’s prediction potential can impact investors and financial regulators in this context. Our review spans existing literature on AI and financial forecasting, recent developments in the Indonesian stock market, and ethical and regulatory concerns that surround AI in finance. Our analysis indicates that AI can enhance forecast accuracy in Indonesia’s stock exchange; however, we must also consider limitations and challenges.

This study aims to survey managers of dividend‐paying firms listed on the Indonesian Stock Exchange (IDX) to learn their views about the factors influencing dividend policy, dividend issues, and explanations for paying dividends. The study also aims to focus on Indonesia, the largest national economy in Southeast Asia, because relatively few studies examine why Indonesian firms pay dividends.

The primary means of gathering data is a mail survey. The two‐page survey instrument consists of three main sections: 22 factors for determining a firm's dividend policy; six questions that provide background information about the respondents and their firms; and 27 statements about dividend policy in general. Of the 163 firms surveyed, 52 firms responded, resulting in a response rate of 31.9 per cent.

The evidence shows that managers view the most important determinants of dividends as the stability of earnings and the level of current and expected future earnings. They also believe that the effects of dividends on stock prices and needs of current shareholders are important determinants. The evidence shows that managers of Indonesian firms perceive that dividend policy affects firm value. Managers seem to agree that multiple theories including signaling, catering, and life cycle explanations help to explain why their firms pay dividends.

The study focuses on a limited number of factors and issues involving dividend policy. While non‐response bias could potentially limit making generalizations to the population of IDX firms, statistical tests show no significant differences between respondents and non‐respondents on various firm characteristics.

The evidence suggests that no universal set of factors is likely to be applicable to all firms when setting dividend policy.

This study presents new evidence on the perceptions of managers of dividend‐paying IDX‐listed firms about the factors influencing dividend policy, dividend issues, and explanations for paying dividends.

Purpose – The purpose of this study is to examine the effect of corporate social responsibility (CSR) on profitability in agricultural sector companies, especially the agricultural sub-sector in the Indonesia Stock Exchange (IDX). These sub-sectors are designated as one sub-plantation group with one value and another valuable sub-sector. This study uses secondary data of financial statements for the period 2015–2016 accessed on the following website: www.idx.co.id.

Design/Methodology/Approach – The data analysis method used in this research, using dummy regression method with an independent variable, is called Corporate Social Responsibility (CSR); Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) are used as dependent variables. Besides this, this study included a sub-sector variable in agricultural sector as a dummy variable.

Findings – This study found that the ability to explain CSR is greater by the ROE on plantation companies. These findings indicate that CSR has a signal for investors when investing in capital markets.

Research Limitations/Implications – This study had restrictiveness in model that was used only profitability ratio as an independent variable. This study also used during a two-year period. Alongside that, the next study is needed to search in other sectors by entering a sector variable as a dummy variable.

Practical Implications – Implementation of CSR was a solution for company to repair organizational and financial performance. So, Properly Company Management uncertainly implement CSR on their environment.

Originality/Value – All sub-sectors in agriculture in the IDX did not have different viewpoints for the implementation of a CSR program to their environment.

This study examines the risk spillovers between Indonesian sectorial stocks (Energy, Basic Materials, Industrials, Consumer Cyclicals, Consumer Non-cyclical and Financials), the aggregate index (IDX) and two commodities (gold and West Texas Intermediate Crude Oil [WTI] futures).

The study uses two methodologies: the TVP-VAR model of Antonakakis and Gabauer (2017) and the quantile connectedness approach of Ando et al. (2022). The data cover the period from October 04, 2010, to April 5, 2022.

The results show that the IDX, industrials and materials are net transmitters, while the financials, consumer noncyclical and energy sectors are the dominant shock receivers. Using the quantile connectedness approach, the role of each sector is heterogeneous and asymmetric, and the return spillover is stronger at lower and higher quantiles. Furthermore, the portfolio hedging results show that oil offers more diversification gains than gold, and hedging oil is more effective during the pandemic.

This study provides valuable insights for investors to diversify their portfolios and for policymakers to develop policies, regulations and risk management tools to promote stability in the Indonesian stock market. The results can inform the design of market regulations and the development of risk management tools to ensure the stability and resilience of the market.

This study is the first to examine the spillovers between commodities and Indonesian sectors, recognizing the presence of heterogeneity in the relationship under different market conditions. It provides important portfolio diversification insights for equity investors interested in the Indonesian stock market and policymakers.

The purpose of this paper is to study the competitiveness of the stock markets in ASEAN 5, which are the Stock Exchange of Thailand (SET), the Singapore Exchange (SGX), Bursa Malaysia (BM), the Indonesia Stock Exchange (IDX), and the Philippine Stock Exchange (PSE).

This research applies Porter’s (1990) diamond model to analyze the competitiveness and the data were collected from World Economic Forum, International Institute for Management Development, the World Federation of Exchanges database, and DataStream.

The results show that SGX is the most competitive exchange in ASEAN 5 region. It dominates other exchanges in every dimension. It gains its reputation for being the region’s most prominent exchange, followed by BM, SET, IDX, and the PSE, respectively.

The results of this investigation provide rank for competitiveness of stock exchanges among ASEAN 5 and identify the way to improve its competitive position.

It is useful for public and private sectors involved in the development and policy making to promote funding and investment efficiency of the exchanges. It will be benefit to establish the well-planned development strategy and policy to build up the competitive advantage of the nations.

Identifying and benchmarking the competitiveness of the stock markets in ASEAN economies. By using Diamond Model, the authors propose indicators to assess the competitiveness of the stock markets in ASEAN 5 countries. Assessing the competitiveness of the ASEAN stock markets in this paper will lead us to better understand about each country’s strengths and weaknesses and to promote a mutual collaboration among the region toward ASEAN Economic Community.

This paper aims to examine Indonesia Stock Exchange (IDX)-listed companies’ society disclosures.

Year-ending 2012 annual report disclosures of 75 IDX-listed companies are analyzed. The widely acknowledged Global Reporting Initiative guidelines are used as the disclosure index checklist.

The results show a relatively low level of voluntary society disclosure (40.27 per cent). The highest level of communication is for issues related to society programs. Very few companies disclosed information about public policy, donations to political parties and actions taken in response to corruption incidents. Statistical analysis reveals that company size is a positively significant predictor of “society” communication. Ethical stakeholder theory partially explains the variability of these disclosures.

The main implication of the findings is that Indonesian companies are not involved in the public policy-making process. Companies also probably attempt to hide certain information regarding corruption issues to protect their image and reputation.

This paper provides insights into the disclosure practices of society issues, a specific social disclosure theme which is rarely examined in prior literature, within the framework of ethical stakeholder theory. The research also includes corruption issues to be investigated in the disclosure analysis.

The purpose of this paper is to examine the association between audit committee effectiveness and timeliness of reporting. Specifically, the paper investigates whether there is any relationship between effectiveness of an audit committee and submission of audited financial statements to the Indonesian Stock Exchange (IDX).

Audit committee effectiveness is measured by an index based on the framework developed by DeZoort et al. Timeliness of reporting is defined as the number of days that elapses between a company's financial year‐end and the day on which its audited financial statement is received by the IDX. The sample comprises 211 non‐financial Indonesian listed companies. Multivariate regression analysis was performed to analyse the relationship between audit committee effectiveness and timeliness of reporting.

The findings show that timeliness of reporting is associated with audit committee effectiveness. This result suggests that audit committee effectiveness is likely to reduce the financial reporting lead time, i.e. the time taken by companies to publicly release audited financial statements to the stock exchange.

The audit committee effectiveness index employed in this study was based on DeZoort et al.'s framework. There could be other aspects of audit committee effectiveness such as the organizational context or multiple‐directorship which had not been addressed in the present study. Thus, future research may consider and examine these other aspects in developing a more comprehensive index.

The findings suggest that audit committee effectiveness is a significant factor ensuring timely submission of audited financial statements. Thus, companies perhaps can re‐look into how to further improve audit committee effectiveness in order to enhance timeliness of financial reporting.

Unlike the majority of prior studies which investigated the association between the presence/absence of audit committee and timeliness of reporting, this study is one of few which examined the relationship between effectiveness of audit committee and timeliness of reporting in an emerging country.

This paper aims to investigate the impact of leverage on the cost of capital and market value in the Indonesia Stock Exchange (IDX), where there are Sharīʿah and non-Sharīʿah compliant firms.

This study uses a mixed methods sequential exploratory design and is based on an empirical analysis undertaken with a sample of firms listed on the IDX. In particular, a qualitative analysis was conducted to identify the Sharīʿah-compliant firms and the qualitative study was designed to compare some financial elements in Sharīʿah and non-Sharīʿah compliant listed companies. The correlations among the main elements observed are considered and a principal component analysis describes the framework.

First, the results of the analysis show that for the Sharīʿah-compliant companies, identified as those that apply Islamic principles, the lower level of leverage that it is typical of these type of firms implies a higher cost of capital [cost of equity and weighted average cost of capital (WACC)] than non-Sharīʿah ones. Secondly, for the Sharīʿah-compliant companies, the lower level of leverage entails a higher market value measured by the multiples method (price/earning and enterprise value/operating profit) than for non-Sharīʿah ones.

This paper sheds new light on how leverage can affect the cost of capital and market value in the case of Sharīʿah and non-Sharīʿah compliant listed companies in the IDX. In particular, this research highlights the fact that Sharīʿah-compliant firms, despite having a higher WACC, create more market value compared to non-Sharīʿah compliant ones.

The recent dynamics of trade policy, especially that is associated with the United States of America (USA) and China, has not only triggered policy adjustments in two economies, it has also implied an uncertainty spillover to other economies across the globe. Consequently, the current study attempts to examine the effect of uncertainties in the USA–China trade policies on stock market indexes. In addition, the cointegration evidence between the USA–China trade policy uncertainty index and of the leading Global South fragile quintet (Brazil, Indonesia, South Africa, India and Turkey) stock market indices is investigated.

Mainly, the FMOLS and DOLS Granger causality analysis with cointegration coefficient estimators were employed for the dataset over the monthly data period of March 2003 and July 2019.

Accordingly, the study found a long-term relationship between the USA–China Trade Policy Uncertainty index and the stock exchange indexes. In addition, a causal relationship was established from the change in the USA–China Trade Policy Uncertainty index to the change in the stock market indexes of almost all of the examined countries (Brazil, Indonesia, South Africa, India and Turkey). In addition, the nonlinear Autoregressive Distributed Lag approach further offers evidence of asymmetric relationship among the examined indicators.

Moreover, this study contributed to the existing literature because it employed the indexes of BIST100, BOVESPA, BSE Sensex 30, IDX Composite and South Africa 40 in a novel approach. Thus, the study posited a useful policy guideline for associated economic uncertainties arising from the trade dispute, such as the case of the world’s two largest trading giants or partners (i.e. the USA and China).