TRACKS: Audit Quality, Earnings, and the Shanghai Stock Market Reaction

2003 ◽  
Vol 18 (3) ◽  
pp. 411-427 ◽  
Author(s):  
Ferdinand A. Gul ◽  
Sunny Y. J. Sun ◽  
Judy S. L. Tsui
Keyword(s):  
Abnormal Return ◽  
Audit Quality ◽  
Market Reaction ◽  
Stock Exchange ◽  
Listed Company ◽  
Positive Association ◽  
Cumulative Abnormal Return ◽  
High Quality ◽  
Stock Market Reaction ◽  
Earnings Per Share

This study examines whether audit quality in the Shanghai Stock Exchange affects the positive association between change in earnings per share and cumulative abnormal return (CAR). Regression results using 659 Shanghai listed company observations in 1996 and 1997 show that the positive market reaction to increase in earnings is stronger for firms audited by high quality auditors. A broad conclusion of the study is that audit quality is playing an important role in China and that investors in the Shanghai market differentiate between high quality versus low quality auditors.

scholarly journals Reaksi Pasar Terhadap Peristiwa Politik Terkait Jokowi di Bursa Efek Indonesia

2015 ◽  
Vol 2 (3) ◽  
pp. 325-343
Author(s):  
Anis Sundiyah ◽  
I Made Sudana
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Abnormal Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
Presidential Candidate ◽  
Analysis Model ◽  
Stock Market Reaction ◽  
Political Events ◽  
Average Abnormal Return

This research examines stock market reaction to the political events related of Jokowi in the Indonesia Stock Exchange. Variables used in this research are average abnormal return (AAR) and cumulative average abnormal return (CAAR) which measured using a statistical test one sample t-test. In this research, there are 230 sampel in the announcement Jokowi as a presidential candidate, 316 sampelin the announcement of results of presidential election quick count and 339 sampel in the announcement of work cabinet. Analysis model in this research is event study during the test period of 11 days exchange trading. Consistency of the stock market reaction was compared descriptively based on the analysis of AAR and CAAR. Testresults of AAR and CAAR showed that stock market consistently reacted positively to the announcement Jokowi as a presidential candidate and the announcement of the work cabinet and inconsistent with the announcement of the results of quick count because stock market reacted negatively. keywords: event study, political events of Jokowi, AAR, CAAR, consistency reaction.

scholarly journals Reaksi Pasar Atas Pengumuman Paket Kebijakan Ekonomi X Tentang Daftar Negatif Investasi

2017 ◽  
pp. 104
Author(s):  
Gusti Ayu Surya Rosita Dewi ◽  
Dewa Gede Wirama ◽  
Ni Ketut Rasmini
Keyword(s):  
Economic Policy ◽  
Abnormal Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
T Test ◽  
Cumulative Abnormal Return ◽  
Analysis Technique ◽  
Event Study Method ◽  
The One ◽  
Business Sectors

ABSTRACT This study aims to empirically test the market reaction that occurs upon the announcement of Economic Policy Package X about the negative investment list (DNI). This study using event study method. The market reaction is calculated using cumulative abnormal return (CAR). The population used are all companies listed on the Indonesian Stock Exchange (BEI), 525 companies. The number of samples used are 477 companies. The analysis technique used is the one sample t-test and the independent sample t-test.  The analysis showed that there is a positive market reaction to the announcement of the Economic Policy Package X. Furthermore, there are differences in the reaction that occurs between the business sectors that benefited by the policy than other business sectors. The highest reaction is shown by the business sectors that benefited by the policy. Business sectors which are benefited by the policy announcement obtained higher market reaction than their counterpart. Keywords: Market reaction, economic policy package X, negative list investment, abnormal return

scholarly journals INVESTIGATING STOCK MARKET REACTION ON JAKARTA ISLAMIC INDEX (JII) ANNOUNCEMENT

2014 ◽  
Vol 4 (1) ◽  
pp. 77
Author(s):  
Nisful Laila ◽  
Mohammad Nasih
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Abnormal Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
Stock Market Reaction ◽  
Before And After ◽  
Positive Abnormal Return ◽  
Adjusted Model ◽  
Exchange Data

The aim of this research is to investigate the stock market reaction from the event when Jakarta Islamic Index (JII) is announced. The indication of stock market reaction was shown by appearing abnormal return during the date when the emiten are in the list of JII, and also several days before and after the annaouncement day. The method of this research is called event studies. Data collected from daily stock price from Indonesian Stock Exchange data base. By using market adjusted model, it was found that 21 stocks from JII latest list, during 11 days observation shown significant abnormal return, at 5% significant level. The conclusion from this finding is that the information of JII announcement has important content that caused the abnormal return during and around the announcement day. Moreover the information is shown a positive signal for investor, so that caused positive abnormal return

scholarly journals BAGAIMANA REAKSI PASAR TERHADAP PERISTIWA AMANDEMEN AKUNTANSI IMBALAN KERJA

2021 ◽  
Vol 15 (1) ◽  
pp. 71-85
Author(s):  
Rahmi Izzati Putri ◽  
Iman Haymawan
Keyword(s):  
Abnormal Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
Research Approach ◽  
Cumulative Abnormal Return ◽  
Test Analysis ◽  
Market Reactions ◽  
Analysis Techniques ◽  
Significant Difference ◽  
Before And After

The purpose of this study is to see the market reaction before and after the event of the work imbalance accounting amendment ratification. This study uses a total of 311 observations of companies listed on the Indonesia Stock Exchange (IDX) during 2013 and uses the Event Study research approach and Paired Sample T-test analysis techniques to test differences in market reactions as indicated by Cumulative Abnormal Return (CAR) before and after. event ratification of the work imbalance accounting amendment. This study found that there was a positive and significant difference in CAR between before and after the event of ratification of the work imbalance accounting amendment. This research has implications for investors to get a picture of the market reaction that occurs as a result of the ratification of the work imbalance accounting amendment. The results of this study indicate that there are differences in market reactions between prior to the ratification of the work imbalance accounting amendment

scholarly journals Analisis Reaksi Pasar Terhadap Pengumuman Merger dan Akuisisi Pada Perusahaan Akuisitor yang Terdaftar di BEI

2018 ◽  
pp. 1870
Author(s):  
Ika Putri Adnyani ◽  
Gayatri Gayatri
Keyword(s):  
Abnormal Return ◽  
Trading Volume ◽  
Sampling Method ◽  
Stock Exchange ◽  
Cumulative Abnormal Return ◽  
Test Results ◽  
Volume Activity ◽  
Paired Sample ◽  
Analysis Technique ◽  
Before And After

This research is conducted on all acquisition companies that conduct acquisitions listed on Indonesia Stock Exchange 2011-2016 period. Sampling method using purposive sampling. The number of samples of this research is 50 companies. The market reaction in this study used abnormal return and trading volume activity. The testing of information content will be done by looking at differences in cumulative abnormal return and the average trading volume of shares five days before and five days after the announcement of the acquisition. Data analysis technique used is paired sample t-test. Based on the test results, found there are significant differences in the abnormal return of the acquirer company before and after the announcement of the acquisition. However, there is no difference in trading volume activity of the acquirer's stock before and after the acquisition announcement   Keywords: acquisitions, stock market, abnormal return, trading volume activity

scholarly journals PENGARUH PENERBITAN SUKUK TERHADAP REAKSI PASAR (SURVEY TERHADAP PERUSAHAAN-PERUSAHAAN YANG MENERBITKAN OBLIGASI SYARIAH YANG TERDAFTAR DIBURSA EFEK INDONESIA SELAMA TAHUN 2015)

2019 ◽  
Vol 4 (3) ◽  
pp. 496-503
Author(s):  
Mulya Iskandar ◽  
Ridwan Ridwan
Keyword(s):  
Stock Returns ◽  
Abnormal Return ◽  
Research Method ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Secondary Data ◽  
Cumulative Abnormal Return ◽  
Market Reactions ◽  
Independent Variables ◽  
The Relationship

This study aims to determine how the influence of a sukuk instrument issuance on market reactions listed on the Indonesia Stock Exchange (IDX) during 2015. The research method used in this study is quantitative research. Quantitative research contains a relationship between cause and effect. The type of data used is secondary data, data collection used by the author is to know the relationship between two or more variables. The object to be examined in this study is the total value and rating of the issuance of Islamic bonds (sukuk) companies as independent variables and cumulative abnormal return shares of companies that issue Islamic bonds (sukuk) listed on the Indonesia Stock Exchange in 2015. The results of this study indicate the value of sukuk bond issuance and sukuk bond issuance ratings jointly affect stock returns. The value of issuing sukuk bonds partially affects stock returns and the rating of bond issuance has an effect on return.

Mandatory Preliminary Performance Reports: Evidence from China

2015 ◽  
Vol 15 (1) ◽  
pp. 67-88
Author(s):  
Yunling Song ◽  
Ling Zhou
Keyword(s):  
Market Reaction ◽  
Stock Exchange ◽  
Annual Reports ◽  
Mandatory Disclosure ◽  
Negative Consequences ◽  
High Quality ◽  
Disclosure Requirements ◽  
Small And Medium Enterprise ◽  
Medium Enterprise ◽  
Performance Reports

ABSTRACT Companies listed on China's Shenzhen Stock Exchange Small and Medium Enterprise Board are required to release preliminary performance reports before the end of February if they cannot file annual reports by that time. Although this mandate might improve the timeliness of information, we find that such preliminary releases are inaccurate and optimistic, potentially misleading investors. Sixteen percent of preliminary reports contain significant inaccuracies (i.e., when actual numbers deviate from preliminary ones by at least 10 percent). Firms in earlier stages of the auditing process, as well as those with low-quality preliminary reports in prior years, poorer performance, greater accounting complexity, and fewer resources, are more likely to issue low-quality preliminary performance reports. Market reaction tests indicate that investors consider preliminary releases to be informative and generally cannot differentiate between high-quality and low-quality preliminary releases. Moreover, when annual reports are filed, investors are surprised by the differences between the annual reports and the preliminary reports. Thus, our paper demonstrates that mandatory disclosure requirements may have unintended negative consequences.

scholarly journals Reaksi Pasar Atas Pengumuman Corporate Governance Perception Index

2019 ◽  
pp. 2432 ◽  
Author(s):  
I Gede Krisna Dharma Putra ◽  
I Gusti Ayu Eka Damayanthi
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Abnormal Return ◽  
Sampling Method ◽  
Market Reaction ◽  
Stock Exchange ◽  
Stock Trading ◽  
Announcement Date ◽  
Analysis Technique ◽  
The One

CGPI is the result of research from the Indonesian Institute for Corporate Governance (IICG) in collaboration with SWA magazine. This study aims to determine the reaction of the capital market on the CGPI announcement. The research was conducted at the company surveyed by CGPI for the period 2013-2016 by accessing the Indonesia Stock Exchange, IICG, Yahoo finance and SWA magazines. The population in this study were the companies surveyed by the Corporate Governance Perception Index (CGPI) for the period 2013-2016. The number of samples taken was 61 using the purposive sampling method. The data analysis technique used is the one sample t-test. Based on the results of the analysis, it was found that during the seven days of stock trading around the announcement of the Corporate Governance Perception Index (CGPI) without involving the comfounding effect (other announcements) there was no market reaction around the CGPI announcement date. Keywords: Corporate Governance Perception Index (CGPI), abnormal return, market reaction

scholarly journals Audit committee compensation, best practices and audit fees

2019 ◽  
Vol 50 (1) ◽  
Author(s):  
Bum-Jin Park
Keyword(s):  
Best Practices ◽  
Financial Reporting ◽  
Regression Models ◽  
Audit Committee ◽  
Best Practice ◽  
Audit Quality ◽  
Positive Association ◽  
Audit Fees ◽  
High Quality ◽  
The Relationship

Background: It is extremely important that an audit committee (AC) monitors a company’s financial reporting process, and that the committee engages a high-quality auditor to carry this out effectively. Prior research on ACs has paid much attention to the relationship between AC best practices and audit fees (AF). Although compensation is a means of aligning interests between ACs and stakeholders, previous studies have neglected the complementary interaction between AC compensation and compliance with best practices on audit quality.Objectives: The purpose of this study is to investigate how compensation for ACs affects AF, and how the association is moderated by compliance with best practices to capture effective monitoring.Method: The regression models are estimated to verify how the relationship between AC compensation and AF is moderated by AC compliance with best practice. Moreover, the logistic regression models are used to investigate how the relationship between AC compensation and the opportunistic achievement of earnings goals is moderated by AC compliance with best practice.Results: The findings show a positive association between the levels of compensation AC members receive and AF, which is reinforced in firms that have ACs that comply with all best practices.Conclusion: The results suggest that highly paid ACs engage high-quality auditors to complement their function of monitoring management and AC compensation and compliance with best practices are complementary to enhance audit quality. This study thus provides the interesting insights that can be applicable to countries with requirements relating to the compensation schemes for ACs or the formation of the AC.

scholarly journals Abnormal Return, Market Reaction around Rating Announcement in Tunisian Stock Market

2016 ◽  
Vol 8 (7) ◽  
pp. 322
Author(s):  
Wissem Daadaa
Keyword(s):  
Stock Price ◽  
Abnormal Return ◽  
Stock Return ◽  
Market Reaction ◽  
Stock Exchange ◽  
Price Change ◽  
Study Methodology ◽  
Book To Market Ratio ◽  
The Impact ◽  
Event Study Methodology

This paper tests the market reaction and the stock price change around rating announcements in Tunisian stock exchange using the event study methodology. We examine the impact of the change rating announcement on stock return firms from 2006 to 2010. The results show that only the negative rating with downgrades note which is associated to negative abnormal return. The market does not seem to be interested upgrades rating on the Tunisian market. The negative reaction of the market can be explained by leverage change, Book to Market ratio and the level of the rating fall.

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