The Effect Of Company's Profit Loss Publication On Stock Return
Abstract
Reza, (2006). The Effect Of Company's Profit Loss Publication On Stock Return.
Yogyakarta: Department of Accounting. International Program. Economics Faculty
Islamic University ofIndonesia.
This research aims to explain the effect of unexpected earning onthe stock return
around the publication date. The change of the stock return can be seen from the
information content on profit (loss) announcement. If there is information content on
the profit (loss) announcement, it will be followed by the significant change of
abnormal return before and after the announcement day. Then, the problem of this
research can beformulated: Whether there is any effect of unexpected earning onthe
stock return around the publication date or not.
The research population is go public companies listed inJakarta Stock Exchange
that publish their financial statements. Financial data and companies' stock price
analyzed are taken from the population from which the data can be accessed at
Information Center of Capital Market - Jakarta Stock Exchange Corner within the
year of 2000 - 2003. The analysis uses a single linear regression to analyze the
information contenton financial statement publication.
Based on the test result, it shows that the single linear regression test results R
square value of 0,074. This means that the change ofprofit (loss) status published by
the companies can explain its effect on abnormal return of 7,4%, while its remain of
92,6% is explained byother factors beside profit (loss) publication. The value oft test
is 1,717 and its significance is 0,094. Because t test > t table is 1,660, it can be
concluded that there is an effect of profit (loss) publication on the average of
abnormal return. However, its effect is not significant. This is showed by its
significancethat is 0,094 (>0,05).
The phenomenon above can describe that there is information content on the
financial statement publication. This is based on the understanding concept that if
there is information content onan event conducted by a company, it will be followed
by the change ofabnormal return significantly. The concept explains that anevent or
an activity conducted by a company has information content. This will be a reason for
investors to react significantly. As a conclusion, a significant reaction to the
companies that publish profit and loss has been a phenomenon explaining that
investors' behavior in Indonesian stock market will be effected by the company
events. One of them is related to profit (loss) publication.
Collections
- Akuntansi [4660]