Insider Trading in Indonesia: Supporting the Policy Implementation of the Capital Market Efficiency
Abstract
As a developing country, Indonesia requires capital from domestic and foreign investors to realize its economic potential. In order to gain the capital, Indonesia opened an opportunity for foreign investors to establish or own a company with Foreign Capital Investment (PMA). In addition, foreign investors are able to buy and control the company's stocks that have been listed on the stock market. Capital obtained in the capital market will help companies develop their potential. Companies can pay operating expenses, including the salaries of directors, commissioners and other staffs. Investors, both domestic and foreign, as stockholders will benefit after operating expenses are paid in advance. With the capital, the potential of the company to pay for itself and provide profits for stockholders become the real potential of the company.References
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[2] Chemmanur, Thomas J., He, Shan, and Nandy, Debarshi K. 2005. The Going Public Decision and the Product Market, EFA 2005 Moscow Meetings;
[3] AFA. 2007. Chicago Meetings Paper, July 20, 2009, p. 1. Available at SSRN: http://ssrn.com/abstract=674241 or http://dx.doi.org/10.2139/ssrn.674241. (Accessed September 12, 2011).
[4] Bainbridge, Stephen M, 1993. In Defense of the Shareholder Wealth Maximization Norm. Washington and Lee Law Review, 50: 1423. Available at SSRN: http://ssrn.com/abstract=303780 orhttp://dx.doi.org/10.2139/ssrn.303780. (Accessed September 12, 2011)
[5] Gardner, Bryan A. (Ed in Chief). 1999. Black’s Law Dictionary, Seventh Edition, St. Paul, Minn: West Group, p. 1227.
[6] John, Armour and Hansmann, Henry and Kraakman, Reinier, “The Essential Elements of Corporate Law”, Oxford Legal Studies Research Paper No. 20/2009; Yale Law, Economics & Public Policy Research Paper No. 387; Harvard Law and Economics Research Paper No. 643;
[7] Harvard Public Law Working Paper No. 09-39; ECGI - Law Working Paper No. 134/2009, p.12. Available at SSRN: http://ssrn.com/abstract=1436551. (Accessed October 21, 2012).
[8] Coffee, John C. 2002. Competition among Securities Markets: A Path Dependent Perspective, Columbia Law and Economics Working Paper No. 192. (March 25, 2002), p. 1-2. Available at SSRN: http://ssrn.com/abstract=283822 orhttp://dx.doi.org/10.2139/ssrn.283822. (Accessed December 11, 2013)
[9] Butler, Eamon. 2011. The Condensed Wealth of Nations and The Incredibly Condensed Theory of Moral Sentiments, (United of Kingdom: ASI (Research) Ltd, 2011), p. 11. Cited from Adam Smith, The Wealth of Nations, Book I, Chapter II, pp. 26–7, Para. 12. http://www.adamsmith.org/sites/default/files/resources/condensed-WoN.pdf. (Accessed March 11, 2013)
[10] Fama, Eugene F. 1970. Efficient Capital Markets: A Review of Theory and Empirical Work, The Journal of Finance, Vol. 25, No. 2, Papers and Proceedings of the Twenty-Eighth Annual Meeting of the American Finance Association New York, N.Y. December, 28-30, 1969 (May, 1970), p. 383, http://www.jstor.org/stable/2325486 (Accessed August 20, 2012)
[11] Jolls, Ch., Sunstein, Cass R. and Tper, Richard. 1998. A Behavioral Approach to Law and Economics, Stanford Law Review, 50: 1471 (May 1998), p. 1476. http://www.law.harvard.edu/programs/olin_center/papers/pdf/236.pdf. (Accessed February 2, 2011)
[12] Bernard S, Black, The Core Fiduciary Duties of Outside Directors, Asia Business Law Review, pp. 3-16, July 2001, p. 1. Available at SSRN: http://ssrn.com/abstract=270749 or http://dx.doi.org/10.2139/ssrn.270749. (Accessed March 11, 2013)
[13] Parmono, Nindyo. 2013. Hukum PT Go Public dan Capital Market, Yogyakarta: CV Andi Offset, p. 237 and Surat Keputusan Menteri Keuangan No. 1548/KMK.013/1990 on Capital Market. Available at: http://www.sjdih.depkeu.go.id/fulltext/1990/1548~KMK.013~1990Kep.HTM. (Accessed 20 May 2015)
[14] Pramono, Nindyo. 2006. ‘Kekayaan Negara Yang Dipisahkan Menurut UU No. 19 of 2003 on BUMN’, in Sri Rejeki Hartono et al., ed, Permasalahan Seputar Hukum Bisnis: Persembahan kepada Sang Maha Guru, Self-published, Jogjakarta, 2006, p. 142
[15] Kharandy, Ridwan. 2009. Korupsi di Badan Usaha Miliki Negara Khususnya Perusahaan Perseroan: Suatu Kajaian atas Makna Kekayaan Negara yang Dipisahkan dan Keuangan Negara, Law Journal, 1: 73–87, p. 75. Available at: http://www.scribd.com/doc/31980111/BADAN-HUKUM#scribd. (Accessed May 20, 2015)
[16] Karsch, Michael. 1984. The Insider Tarding Sanctions Act: Incorporating A Market Information Definition, Journal of Comparative Business and Capital Market Law, 6: 283.
[17] MacLeod Hemingway, Joan. 2013. Willful Blindness, Plausible Deniability and Tippee Liability: SACS, Steven Cohen, and the Court’s Opinion in Dirks, Transactions: The Tennessee Journal of Business Law, 15: 49.
[18] Tamanaha, Brian Z. 2014. A Concise Guide to the Rule of Law. Florence Workshop on The Rule of Law, Neil Walker, Gianluigi Palombella, eds., Hart Publishing Company, 2007; St. John's Legal Studies Research Paper No. 07-0082. Available at SSRN: http://ssrn.com/abstract=1012051. (Accessed July 26, 2014)
[19] Merryman, John Henry and Perez-Perdomo, Rogelio. 2007. The Civil Law Tradition: An Introduction to the Legal System of Europe and Latin America, Third Edition, (Stanford, California: Standford University Press.
[20] Sauveplanne, J. G. 1982. Codifed and Judge Made Law, The Role of Courts and Legislators in Civil and Common Law Systems, Mededelingen Der Koninklijke Nederlandse Akademie Van Wettenschappen, AFD. Letterkunde Nieuwe Reeks-Deel 45 – No. 4, (Amsterdam/Oxford/New York: North-Holland Publishing Co, 1982), p. 100,
[21] Satjipto, Rahardjo and Awaludin, Marwan (Editors). 2012. Ilmu Hukum, Bandung: PT Citra Adytia Bakti, p. 245.
[22] Soeroso, R. 2010. Yurisprudensi Hukum Acara Perdata, Bagian 4, On Pembuktian, Jakarta: Sinar Grafika, p. xxxv.
[23] Soerjono, Soekanto, and Purnadi, Purbacaraka. 1986. Perundang-undangan dan Yurisprudensi, (Bandung: Alumni, 1986), p. 55.
[24] Hans Kelsen, General Theory of Law and State, Clack, New Jersey: The Law Book Exchange Ltd, 12009, p. 162.
[25] Echols, John M. and Shadily, Hassan. 2002. Kamus Inggris Indonesia, Edition XXV, Jakarta: PT Gramedia Pustaka Utama, p. 324.
[26] Robinson, Paul H. and Darley, John M. 2007. Intuitions of Justice: Implication for criminal law and justice policy, Sothern California Law Review, 81(1): 21.
[27] Anwar, Jusuf. 2008. Penegakan Hukum dan Pengawasa Capital Market Indonesia, PT Alumni: Bandung, p. 49-50.
[28] Nasarudin, M. Irsan et al. 2011. Aspek Hukum Pasar Modal Indonesia, Kencana Prenada Media Group: Jakarta, p. 269.
[29] Franck, Thomas M., “Democracy, Legitimacy and the Rule of Law: Linkages” (1999). NYU Law School, Public Law and Legal Theory Working Paper No. 2. Legitimacy can be symbolized by Roberts' Rules of Available at SSRN: http://ssrn.com/abstract=201054 orhttp://dx.doi.org/10.2139/ssrn.201054. (Accessed July 25, 2014)
[30] Safitri, Indra. 1998. Transparansi Independensi dan Pengawasan Kejahatan Pasar Modal, Kajian Kasus Kontroversial Insider Trading, Hostile Take Over dan Market Manipulation di Bursa Saham, Jakarta: Go Global Book, Book Publishing Division Safitri & Co.
[31] Anwar, Jusuf. 2008. Penegakan Hukum dan Pengawasan Pasar Modal Indonesia, Seri Pasar Modal 2, Bandung: PT Alumni, p. 37.
[32] Posner, Richard A. 1980. The Value of Wealth: A Comment on Dworkin and Kronman, Journal of Legal Studies 9(2): 243–52.
[33] Hardin, Russel. 1992. The Morality of Law and Economics, Law and Philosophy, 11: 336. Available at: http://www.nyu.edu/gsas/dept/politics/faculty/hardin/research/MoralityLaw.pdf. (Accessed September 24, 2013)
[34] Zhou, Qi, The Evolution of Efficiency Principle: From Utilitarianism to Wealth Maximization, December 17, 2005. Available at SSRN: http://ssrn.com/abstract=870748 or http://dx.doi.org/10.2139/ssrn.870748. (Accessed May 21, 2015)
[35] Schafer, Han-Berd, and Caus, Ot, The Economic Analysis of Law, Northampton: Edward Elgar Publishing, Inc, 2004, p. 30.
[36] Booth, Richard A. 2008. What is a Business Crime?. Villanova Law/Public Policy Research Paper No. 2008-17, p., 1.
[37] Kenneth Mann, Punitive Civil Sanctions: The Middleground Between Criminal and Civil Law, 101 YALE L.J. 1795, 1809 (1992) in Richard A. Booth, “What is a Business Crime?” Villanova Law/Public Policy Research Paper No. 2008-17, p., 1.
[38] Lynch, Gerard E. 1997. The Role of Criminal Law in Policing Corporate Misconduct, 60 Law and Contemporary Probs. 23, 31.
[39] Wirjono, Prodjodikoro. 2003. Asas-Asas Hukum Pidana di Indonesia, Bandung: Refika Aditama, p. 17.
Published
2016-11-24
How to Cite
YUSUF, Chandra.
Insider Trading in Indonesia: Supporting the Policy Implementation of the Capital Market Efficiency.
Journal of Advanced Research in Law and Economics, [S.l.], v. 6, n. 1, p. 224-246, nov. 2016.
ISSN 2068-696X.
Available at: <https://journals.aserspublishing.eu/jarle/article/view/461>. Date accessed: 03 july 2024.
Section
Journal of Advanced Research in Law and Economics
Keywords
insider trading; Capital Market Efficiency; Foreign Capital Investment
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