Investor behavior under the Covid-19 pandemic: the case of Indonesia

Signaling theory assumes that it is necessary to signal investors to how they perceive company’s prospects. One of them is dividend announcements. The announcement of dividends is predicted to be a signal for investors in the investment decision making process. This study aims to determine and analyze the effect of dividend announcements, both increases and decreases in dividends, on stock returns. This study is intended to find empirical evidence about market reactions based on signaling theory in Indonesia Stock Exchange on the period 2017. The analysis of this study uses the event study method and hypothesis testing carried out using different test paired sample t-test. The results of this study prove that the market reacts to the announcement of dividends. The market reaction is indicated by the value of abnormal returns, namely abnormal returns in the positive direction when the announcement of dividend increased and abnormal returns in the negative direction when the announcement of dividend decreased. The value of abnormal returns in a positive direction reflects the company’s performance in good condition, and vice versa. This result indicates that dividend announcements are a signal and contain information relevant to investors in the investment decision making process.

Banking stability is essential to any economy due to its many functions, including intermediation, payment facilitation, and credit creation. Thus, the stability of the banking industry is one of the critical ingredients in economic growth. This paper analyzes how bank capital requirements, credit, and liquidity impact bank solvency using ten major banks that control 90% of the market share in the UK in 2009–2018.
The GMM model indicates a strong association between credit and liquidity risks. That is, when banks finance a risky or distressed project, this will lead to an increase in non-performing loans (NPL), which reduces bank liquidity. Poor liquidity profile of the bank may restrict it from providing financial intermediation role. In addition, the findings indicate that efficiency, asset quality, and economic growth have a significant positive effect on the solvency of banks. The results also show that the regulatory capital (tier1) has a positive significant influence on solvency of the banks. Further, the results indicate that during the economic boom, banks tend to increase their regulatory capital. Therefore, there is a need to ensure that during the “good time”, banks can accumulate enough capital that is genuinely capable of absorbing negative shock. Also, it is important for banks to ensure that they are efficient but also have robust credit appraisal system to reduce NPL. This paper also demonstrates the implication of increased capital requirements. That is, increased capital requirements ensure not only banks are liquid but also solvent which enables them to provide financial intermediation.

Under the conditions of the development of market relations, the insurance protection of agricultural producers plays an essential role in the economic stabilization of their development. Insurance can be one of the most effective tools for managing production, market and legal risks, but agricultural insurance is not well developed in the country. The purpose of the article is to study the current state and prospects for further development of the Ukrainian agrarian insurance system, based on developing the strategy of development of the latter with maximum consideration of needs and interests of all its participants.
General scientific methods of scientific knowledge and research of economic phenomena are used for the achievement of the goal set in the article, such as the abstract-logical method, comparison method, monographic method, tabular method, graphical and scientific generalization.
The article investigates features of the present state and general tendencies of functioning of the Ukrainian agrarian insurance system and outlines general features and prospects of further development of the latter, which are based on development of the strategy of system development with maximum consideration of needs and interests of all its participants. A set of principles is defined on which the strategy of development of the Ukrainian agricultural insurance system should be based and their further functioning in the format of the model of private-public partnership is proposed within the framework of the developed strategy. This represents a balance between public-private partnerships. The results of the study can be used for further scientific developments in this direction. The implementation of the measures proposed in the framework of the strategy for the development of the Ukrainian agrarian insurance system through the effective use of state resources and maximum use of the agrarian market and the insurance market should ensure stability of both agricultural production in general and income of the rural population in particular. This is a prerequisite for stable economic growth of the country and an increase in the welfare of its citizens.