Dampak Sistemik BANK CENTURY Kajian Teoretis dan Empiris (Indonesian Edition)

Synopsis: Why couldn't Professor Boediono convinced members of parliament that it's possible to use rumor arguments to determine Bank Century as a failed bank with systemic impact? Century Bank has a small role in the banking system so that closing it wouldn't cause a systemic impact Based on traditional economy theory, that logic is right. This theory is based on rational agent assumption. Making a decision based on fundamental data is a form of rational behavior. In stock investment, investor will make decision to buy when stock price is reduced (under fundamental value) and he will sell when price increases (above fundamental value). Empirical facts indicate that apparently agents behave irrationally. They buy when stock rise increases, and refrain from buying when stock prices decline. This behavior is explained in behavioral finance theory. This theory corrected the traditional economy assumptions. Behavioral finance theory proves that economy agents behave irrationally. Investors don't make decisions based on fundamental analysis but on rumors. Unfortunately, internet helps spread rumors and encourages irrational behavior. Based on behavioral finance theory, the policy to determine Century Bank as a failed bank with systemic impact is made possible. The discourse in this book opens new horizon and argument. (http://www.gramediainternational.com/book/detail/9789792778960)