INVESTIGASI EMPIRIS TERHADAP PERILAKU FREENDING DALAM REAKSI PASAR TERHADAP PUBLIKASI LABA GOOD NEWS DAN BAD NEWS

2005 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Andreas Lako
Keyword(s):  
Experimental Design ◽  
Market Failure ◽  
Empirical Investigation ◽  
Stock Exchange ◽  
Earnings Announcements ◽  
Free Riding ◽  
Bad News ◽  
Good News ◽  
Quasi Experimental ◽  
Market Anomaly

This study purposes to investigate the free-riding behattior from stoek market actors in responding to the good and bad news earnings announcements. Theoreticolly, free-riding (and externality) behaviors are the source of market failure, which suggest that regulotion mry still be needed (Wolk et al. 2001; Scott, 2003). But, the empirical investigation with respect to the issue is still rare. Using the good and bad news earnings announcements of 1998-2000 from LQ45 firms listed at theJakarta Stock Exchange and a quasi-experimental design, the results show that there arefree-riding behaviorsfrom market actors in responding to the good news earnings announcements from treatment sample. However, this study fails to find the free-riding behaviors from market actors in responding to the bad news earnings onnouncernents. The study also finds a number of phenomena that reflected the market anomaly. For thefuture research, this study suggests to extend the samples ond periods of earnings announcements, as well as appty the theory and models of behavioral finance.Kata kunci: free-riding, good news, bad news, quasi experimentol, treafinent sample dut contrul sample.

scholarly journals Persistence of earnings and prediction of future cash flows: the role of timely recognition of bad news

2016 ◽  
Vol 17 (4) ◽  
pp. 353-360
Author(s):  
Gholamreza Kordestani ◽  
Maryam Taqiporian ◽  
Vahid Biglari ◽  
Vahid Minaei
Keyword(s):  
Stock Exchange ◽  
Cash Flows ◽  
Bad News ◽  
Good News ◽  
Type Model ◽  
Panel Type ◽  
Future Cash Flows

Timely recognition of losses and expenses compared to revenues and increased values precipitates future expenses to match with current revenues. Thus, timely recognition of losses acts to reduce the persistence of earnings. However, it is expected that a more timely recognition of negative cash flows, as bad news, increase the power of earnings for predicting future cash flows. This study investigates the effects of the timely recognition of bad news (loss) versus the good news on the decrease of the persistence of earnings, and the effect of negative cash flows on forecasting future cash flows. In this study, two pooling type models and a panel type model have been used to estimate the persistence of earnings and cash flows. Seventy eight firms that were listed in the Tehran Stock Exchange during the period 2003–2010 were duly reviewed. The results of this research proved that the timely recognition of loss does not affect the persistence and the power of earnings for the purpose of forecasting future cash flows. The findings imply that conservatism does not distort persistence of earnings.

scholarly journals An Analysis of Sharia and Conventional Shares’ System at Indonesia Stock Exchange

2020 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Hersugondo Hersugondo ◽  
Cholimatul Sadiyah ◽  
Eka Handriani ◽  
Herry Subagyo ◽  
Sih Darmi Astuti
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Bad News ◽  
Good News ◽  
Risk Level ◽  
Volatility Risk ◽  
The Third ◽  
The Stability ◽  
High Level ◽  
Real Assets

There are lots of alternative investing. It is started from investment real assets, securities, from conventional and manifold sharia. Islamic Capital market and conventional have some type securities which have different risk level of risks. A stock is one of securities among other securities that have the high level of risk. One of the risks that exists in the stock is fluctuations price, it is commonly called as volatility. The aim of this research is to identifiy the risk of sharia stock and conventional stock in Indonesia Stock Exchange (BEI) by using Jakarta Islamic Indekx (JII) and LQ45 Indeks variabels. In our research, we use time series started on 1 January 2015 to 10 October 2016 from yahoo finance with ARCH/GARCH and EGARCH models processed by Eview 8. Based on research finding with GARCH and EGARCH, this research tends to EGARCH. The fist finding shows that volatility stock JII lower, 0,075 than LQ45 0,0316. If volatility is higher, it means the stability degree lower. Both of those stocks are dominated by bad news and good news. Between JII and LQ45, the news respon is higher on LQ45. It means the volatility risk impact higher on LQ45. The third finding is the JII forecasting results through EGARCH has refrection proportion JII has smaller 0,194 than LQ45 0,678. It means that JII volatility is lower than LQ45.

scholarly journals The Effect of Board Composition on Conservatism: Empirical Evidence from Tehran Stock Exchange (TSE)

2012 ◽  
Vol 3 (1) ◽  
pp. 17-24
Author(s):  
Keramat Ollah Heydari ◽  
Saber Samadi . ◽  
Hamid Asadzadeh . ◽  
Ahmad Kazemi Margavi . ◽  
Hemad Nazari .
Keyword(s):  
Data Analysis ◽  
Stock Returns ◽  
Board Of Directors ◽  
Capital Market ◽  
Stock Exchange ◽  
Financial Statements ◽  
Bad News ◽  
Good News ◽  
Board Composition ◽  
The Board Of Directors

Conservative is misinterpreted as capturing accountants 'tendency to require higher degree of verification for recognizing good news than bad news in financial statements. Under this interpretation of conservatism, earnings reflect bad news more quickly than good news. By using firms' stock returns to measure news, the asymmetric time lineless of recognizing good news and bad news can be examined as a measure of conservative behavior and as them an in question of this research in Irani and capital market. This research examines effect of composition of the board of directors of the companies listed in Tehran Stock Exchange (TSE) on conservative. Data analysis for seven years (2003-2010) shows that companies with a more in dependent board are more conservative. It means that these companies report bad news more timeliness than good news. The results of the research results confirm and reinforce previous researches.

scholarly journals The Impact Of Political Instability Driven By The Tunisian Revolution On Stock Market Volatility: Evidence From Sectorial Indices

2018 ◽  
Vol 34 (2) ◽  
pp. 339-354 ◽  
Author(s):  
Salma Zaiane
Keyword(s):  
Stock Exchange ◽  
Bad News ◽  
Good News ◽  
Stock Market Volatility ◽  
Asymmetric Effect ◽  
Political News ◽  
Stock Indices ◽  
Terrorist Acts ◽  
Tunisian Revolution ◽  
The Impact

The aim of this paper is to study the impact of political uncertainty, driven by the Tunisian Revolution, on return and volatility of major sectorial stock indices in the Tunisian Stock Exchange. We specifically use EGARCH (1.1) model from 01/12/2010 to 31/08/2016. This model is applied to the daily returns relevant to ten sectorial stock indices and to the Tunisian benchmark index (TUNINDEX). To test the impact of political news on returns and volatility, we divided them into two groups (good and bad news). Our results show that both of good and bad news have increased the volatility of major selected indices, including the TUNINDEX. However, the return of all indices are not affected by the political news. We then examined the impact of terrorism on the behavior of indices return and volatility. Results show that the Tunisian market responds significantly to terrorist acts. Hence, the return declines and the volatility increase the day of terrorist attacks. Furthermore, results confirm that bad news have stronger effect on the volatility than good news, which reveal the asymmetric effect of volatility.

scholarly journals ANALISIS RETURN DAN LIKUIDITAS SAHAM SEBELUM DAN SESUDAH PENGUMUMAN RIGHT ISSUE DI BURSA EFEK INDONESIA

2018 ◽  
Author(s):  
Irdha Yusra
Keyword(s):  
Trading Volume ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Secondary Data ◽  
Bad News ◽  
Good News ◽  
Volume Activity ◽  
Significant Difference ◽  
Before And After ◽  
Rights Issue

The purpose of this study was to analyze the abnormal returns and trading volume activity before and after the announcement of the rights issue. This research is the event study using secondary data. 33 companies listed in Indonesia Stock Exchange from 2005 to 2009 were sampled using a purposive sampling method, which consists of 9 samples (good news) and 24 samples (bad news). The results of this study showed that there was no significant difference in abnormal return observation period 5 days, 15 days, 60 days, 90 days, 180 days before and after the announcement of the rights issue in the group of good news and bad news. While the volume of trading activity, trading volume activity differences are significant at the 5 day period prior to the announcement of the rights issue after the group bad news.

scholarly journals TRANSFER INFORMASI INTRAINDUSTRI PADA PENGUMUMAN KENAIKAN DIVIDEN

2017 ◽  
Vol 1 (1) ◽  
pp. 34
Author(s):  
Ratna Hidria DPS
Keyword(s):  
Stock Exchange ◽  
T Test ◽  
The Other ◽  
Bad News ◽  
Good News ◽  
Capital Gain ◽  
Competitive Effect ◽  
Transfer Of Information

The aim of this research is to test intra-industry transfer in the announcement of dividend increase in Indonesia Stock Exchange. This research is to prove the behaviour of competitor companies (nonreporter) in the same industry with company which makes the announcement of dividend increase (reporter) to the companies. The latest samples are 381 companies. The result of this test is showing that announcement of devidend increase has a significant effect to the judgement of companies which are not make the announcement. This announcement is make a competitive effect. This effect shows that the good news from the reporter company will be bad news for the other companies in the same industry. The statistic menthod which is used to test the hypothesis is t test. This research is also used to test the reaction from the nonreporter companies which already or not yet announce their devidend. The result of this test shows that there are no difference reaction from the nonreporter companies, which already or not yet announce their dividend. It means that investors more interest to get some profit from capital gain than dividend.Keyword: transfer of information, intraindustry, dividend

scholarly journals The information content of dividends on the Johannesburg Stock Exchange: An empirical analysis

1987 ◽  
Vol 18 (4) ◽  
pp. 187-197 ◽  
Author(s):  
L. L. Ooms ◽  
A. A. Archer ◽  
E. V.D.M. Smit
Keyword(s):  
Stock Exchange ◽  
Abnormal Returns ◽  
Efficient Market Hypothesis ◽  
Bad News ◽  
Good News ◽  
Efficient Market ◽  
Earnings Information ◽  
Johannesburg Stock Exchange ◽  
Market Portfolio ◽  
Dividend Announcements

The authors attempt to make a contribution to the research into the validity of the efficient market hypothesis on the Johannesburg Stock Exchange by investigating the market's reaction to dividend announcements. Evidence is presented that the efficient market hypothesis is not invalidated as traders on dividend information are not able to generate returns which are significantly different from the return generated by the market portfolio. It seems that the market is not sophisticated enough to distinguish between good and bad news as both portfolios yield either positive or negative abnormal returns. In quite a few cases investors holding a bad news portfolio were better off than holders of a good news portfolio. These facts suggest that the market is probably not reacting to dividend information but to the underlying earnings information which is simultaneously released. These results were obtained by applying the conventional techniques for announcement studies and it is obvious that this methodology should be refined and improved and further adapted to local practices in order to be able to give conclusive answers.

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