Determinants of the inDustrial manufacturing stock’s holDing PerioD

This study aims to identify the effect of Market Value (MV), Return on Asset (ROA), Earning per Share (EPS) and Bid-Ask Spread (BAS) over the holding period of manufacturing companies listed in Jakarta Islamic Index (JII). The data used here is period between 2014-2016. This research is a quantitative research. The data used in this research are the outstandingnumber of shares, the volume of stock transactions, closing price, ROA, and EPS. The technique for data analysis which will be used in this research is panel data regression test using REM model. The results of this study show that: 1). Market value have a significant positive effect on the manufacturing company stock’s holding period, which is shown by the value of sig t 0,0075. 2). ROA has no significant effect on on the manufacturing company stock’s holding period, which is shown by the value of sig t 0.1269. 3). EPS did not significantly affect the holding period of the manufacturing company's shares which was shown by the sig t value 0.7358. 4). The variable of Bid-Ask Spread does not significantly affect the holding period of the manufacturing company's stock which is shown by the value of sig t 0.1031. 5). MV, ROA, EPS, BAS according to test of model existence / F test is the existing model used with the value of F statistics 0.000397. 5). The value of Adjusted R2 of 19.85% indicates that variations in the variable of Holding Period can be explained by independent variables, and the remaining 80.65% of the variable of Holding Period are explained by other variables outside the research model.

the variable of Holding Period are explained by other variables outside the research model. keywords: Holding period, Market value, REM modelling, Jakarta Islamic Index.

introDuction
The capital market is a market for various long-term tradable financial instruments, such as bonds, equities (stocks), mutual funds, derivative instruments and other instruments. The stock market is also called the Securities Exchange, because there is a sale and purchase of securities. Stock exchange itself is the physical capital market. The Indonesian Stock Exchange provides various types of securities offered by the company and they can be selected by investors in accordance with their various consideration (Sari and Abundati, 2015).
An investor has the freedom to choose the type of stock, buy the number of shares and determine the length for holding financial assets. If investors know that stocks of the companies they buy are profitable, then they will likely hold those shares for longer periods, in the hope that the future selling price of these shares will be higher. By contrary, investors will soon release the shares they have bought, if they predict the price of those shares will decline. They will do this because by doing this they canget bigger gain on the investment made and to minimize risks that will be faced (Arma, 2013). The length of period in which an investor holds companies stock or or other finansial asset is known as Holding Period (Sari and Abundati, 2015).

One of the stock indexes available in the Indonesian Stock
Exchange is the Jakarta Islamic Index (JII). Companies listed in this index are companies that have the criteria in accordance with the principles of Sharia. The data below shows the growth in the volume of shariah stock transactions filtered by JII index. This shows that the interest of investors to invest in Sharia stocks is getting bigger. Although the interest of investors to transact Sharia stocks is quite large, but that does not meanthat to hold thosestocks can be fully profitable. At some point, an Islamic stocks must be worthy of an investor's hold for a certain period of time to show that the investor feels secure in holding the stocks.

literature reVieW Previous studies
To begin this research, I will be benefiting from previous

Definition of Invesment Activities
Investment, conceptually, is a commitment to a number of funds or other resources at this moment with the aim of gaining profit in the future. Thus, in the other words, it is to invest money now, in order to get benefits (reward or profit) in the future. Investment means the expenditure of investors or companies to purchase capital goods and production equipment to increase the ability to produce goods and services available in the economy (Sukirno, 1997).
Investments are also defined as expenditures to purchase capital goods and production equipment in order to replace and primarily to add the capital goods in the economy that will be used to produce goods and services in the future. In the theory of investment economy, it is a shopping activity to increase the capacity to produce something in the economy (Sukirno and Sadono 2005).

Definition of Investment by Kamus Besar Bahasa Indonesia
(KBBI), is putting the money in a company or project for the purpose of obtaining profit. It is basically to buy an asset that is expected in the future to be resold at a higher value. It can also be interpreted as the placement of funds or the exchange of money with other forms of wealth over a certain period, which is expected to earn income and / or increase the value of investment.
As a delay of consumption of the present for the foreseeable future, in which there is a risk, it requires a compensation for the delay, in the form of profit.
In general, the object of investments is real assets (land, gold, and buildings) as well as financial assets (securities or securities).
Investors have the freedom to choose the type of securities to invest in a go public company. Investors also have the freedom to determine the amount of securities they buy and the duration of holding or holding such securities. Those who feel the securities they buy will bring profits, will hold the securities for a longer period of time, or immediately release the securities if it is predicted to be less profitable (Sari & Abundati, 2015).
There is relationship between investment and consumption, because the delay of consumption is an investment in the future, then below is a curve that explains about this (Fauzan, 2005). The current consumption delays can be interpreted as an investment for future consumption. It can be described with indefference curve, i.e. a curve that shows the same satisfaction (utility) for each point. Figure 2.1 shows that the combination of current consumption (K 0 ) and upcoming consumption (K 1 ) gives the same satisfaction at points along the indefference curve. Both point A for a combination of current and future consumption (K 0 Y & K 1 Y) and point B for a combination of current and upcoming consumption (K 0 X & K 1 X) will provide the same level of satisfaction. Point A has a current level of consumption (K 0 Y) greater than the current consumption level (K 0 X) at point B.
Vice versa, point B has an upcoming consumption level (K 1 X) greater than the next level of consumption at point A. Point C is a combination of consumption that has the highest degree of satisfaction, since point C lies on IC 3 position above the other indifferencecurve (IC 1 IC 2 ). Point A and point C have an upcoming level of consumption higher than point A.

Investment in the view of Sharia is slightly different, in that it
is Sharia itself that has anauthoritative rule in running a good and perfect life. It can be achieved by maintaining human relationships and other creatures, in which all of this are all carried out in the framework of good relationships with God.
Islam has a different view about investment, especially in the use of wealth. In addition, the concept of wealth in Islam is also not the same as the Western view. The difference between Islamic views and that of Western views is related to God's position. In the Western view, God is put aside. He is beyond human capacity to be known. Everything happens with the power of human effort.
The rationality of the individuals becomes the driving force of all activity.
The concept of Islamic investment is the concept of investment in accordance with the guidance of Religion of Islam.
Therefore, it is necessary to consider the aspects that will become the determinants of investment activities, normative aspects that trigger the investment activities, the conception of wealth and the usage of wealth. Investments in Islamic perspective can only be done on instruments that are in accordance with Sharia and they must not contain usury. Investments can also be made only on securities issued by the issuer whose type of business activities are not contrary to Sharia.
Sharia Investment in the capital market means an investment activity in securities which conform Islamic principles that have received recognition from the DSN (National Sharia Council).
The definition Sharia Investment in general according to Veithzal Rivai, et al (2010) is the activity to increase money through the utilization of various sources with the intention of gaining profit that is in line with Islamic principles.
Apart from paying attention to the issuer, we should also see carefully the types of investment transactions since there are several types of transactions which are prohibited. The selection and execution of investment transactions must be carried out according to prudential management principles and it is not allowed to make speculations that are contrary to sharia principles. There are several shariah compliance products in the Islamic investment area, among others are Mudharabah Deposits, Asuransi Syariah , Education Savings, Syariah Mutual Funds, Sharia Shares, Gold Investment.

Definition of Capital Market
Capital market is a market for various long term instruments that can be exchanged, including bonds, shares, mutual funds and any other instruments. Capital market is a funding facility for companies, institutions (including those government institutions) as it is a facility for investment activity as well (Rivai, 2010).
According to Act no.8 Year 1995 on Capital Market, it is stated there that capital market is "an activity related to the public offering, trading on issued securities and other body and professions related to the securities (article 1 point 13). The securities itself is issued shares, debt certificates, commercial debt certificates, stocks, bonds, debt receivables certificates, collective investment funds, future contracts on stocks and any other derivative with stocks as it underlying units (article 1 point 5).
Capital market is a compliment for other two industries within financial sector, the banking and insurance industry. It bridges the capital owner called investor and the fund users called stock issuers or simply those companies which went public (Hermuningsih, 2012).
Capital market is a market for various instruments and long term securities which can be traded, whether in the form of debt or capital, whether it issued by government, public authorities or private companies (Husnan, 1994).

Definition of Islamic Capital Market
According to Burhanuddin, the word capital from the fiqh perspective means all things (property or asset possession) which has the capable of producing another asset. The capital market is a place of buying and selling the securities with the purpose of getting profit for both buyer and seller under the umbrella of Islamic principles (S, 2008.) Islamic capital market is one of the alternative funding resources for companies while in the same time it is an investment facility for the investors by using contracts comply to the shariah requirement that DSN-MUI (National Shariah Advisory Council) has enacted (Umam, 2013).  (Umam, 2013). Shares may also be construed as a certificate of capital participation of a person or legal entity against a company, and is a written evidence for investors on the ownership of a company which has gone public (S, 2008).
The stock in Islam is essentially a modification of the joint venture system of capital and wealth, which in fiqh terms is known as syirkah or cooperation (S, 2008). Sharia stock is securities or securities that have the concept of equity participation to companies that do not have activities or business activities that violate sharia principles with the right of profit sharing based on sharia principles (Heykal, 2012). Investors activities of holding and selling their stocks is done to maximize their profit or to reduce the risk they will face. The length of period holding their fund in certain securities is called as holding period and the each investor has their investment analysis in determining of holding or selling the securities they have.

Holding Period of Stocks
Holding period is the variable that indicates the average length an investor hold the shares of certain companies he has.
When an investor is about to invest, he must look ahead towards

research methoDs tool and analysis model
The analysis carried on this paper uses panel data regression with the econometrics model as the following:

Dependent Variables
Dependent variable is a variable which is affected by the independents. The dependent variable is the main object in the research. We will estimate the dependent variable and all changes associated with it later on this paper. The dependent variable in this research is the holding period, that is the variable which indicates the average period an investor willing to hold their stocks (Ningsih and Asandrimitra, 2017). The length of an investor holding his securities is not expressed in the unit of time.
Instead, holding period of stocks is expressed by the comparison between the circulating shares in time of t with the transaction volume in the same year (Ningsih and Asandrimitra, 2017).

Stock transaction volume in time t independent variable
Independent variable is the variable which explains or affects another variable. The independent variables in this research are market value, return on asset, earning per share and bid ask spread.

source of data
The data in this research which is compiled, used and processed is the secondary data which is obtained indirectly from the third party through any existing means available. This includes the data available from literatures, articles, journals, IDX, Yahoo     Before discussing the estimation result, we first will elaborate on the validity test of the result first using t-test. The t-test shows the significant level of the independent variable individually on towards the dependent variable. The H 0 means that the independent variable has no significant effect on the dependent variable while the H a means that the independent variable affects significantly on the dependent variable. The H 0 is rejected when the t-test < α and the H 0 is accepted if t-test > α. The result of this research is also in line with the previous study done by Sari and Abundati (2015) titled "Determinant of the Holding Periods on LQ45 index" since they also point out that market value is significant with positive sign. Thus, market value is a detrimental factor for investor of holding or selling their stocks.
In addition to that, REM estimation shows that ROA is insignificant in affecting the holding period of stocks in manufacturing industry. ROA has no significant effect on the length period of an investor in holding the stocks. This indicates that ROA does not affect investors' decision of holding or selling their stocks longer. It does not matter how much the ROA a company is able to generate since their main concern is the return on the asset they hold now.
The result here is in the contrary of previous study done by Kusumawaty (2016) with the title "The Effect of Securities and make them willing to hold their assets longer.
Last but not least, REM estimation also shows that BAS (bidask spread) has no effect on the holding period of manufacturing industries' shares. BAS is insignificant on the length the investors' are willing to hold their assets. Therefore, BAS is not the main factor for investor in determining the length of their holding period.
The result here also supports the earlier study done by Perangin-angin and Fauzie (2013) with the title "Analysis of Bid-Ask Spread, Market Value and Variance Return on Holding Period for Mining Industries". The study there recorded that BAS is insignificant so that this variable has no effect on investors' consideration when deciding whether to hold or sell their asset.

conclusion anD suggestion conclusion
Based on the analysis done above, we can draw inferences that the independent variables of market value (MV), return on asset (ROA), earning per share (EPS) and bid-ask spread (BAS) are jointly significant in affecting holding period on companies of manufacturing industries listed under Jakarta Islamic Index (JII).
However, the effect of market value, return on asset, earning per share and bid-ask spread partially is as the following: a. Market value is significant and has positive effect on holding period of companies' shares for manufacturing industries listed under Jakarta Islamic Index (JII).
b. Return on asset is not significant in affecting holding period of companies' shares for manufacturing industries listed under Jakarta Islamic Index (JII).
c. Earning per share is not significant in affecting holding period of companies' shares for manufacturing industries listed under Jakarta Islamic Index (JII).
d. Bid-ask spread is not significant in affecting holding period of companies' shares for manufacturing industries listed under Jakarta Islamic Index (JII).

suggestion
From the result of this study which has been elaborated above, there are some suggestions that can be made.
1. For investors who wants to make investment on shariah stocks, they should take into consideration the market value since it has proofed that company's market value affects the holding period on stocks of manufacturing industry company.
2. It is also suggested for the next research to add more variables