scholarly journals EARNINGS RESPONSE COEFFICIENTS IN THE GREEK MARKET

2013 ◽  
Vol 14 (2) ◽  
pp. 414-431 ◽  
Author(s):  
Dimitrios I. Maditinos ◽  
Željko Šević ◽  
Jelena Stankevičienė ◽  
Nikolaos Karakoltsidis
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Cross Sectional ◽  
Earnings Response Coefficients ◽  
Earnings Response ◽  
Athens Stock Exchange ◽  
One Year ◽  
The Relationship ◽  
Cumulative Model

The paper explores the relationship between accounting information and stock returns of the companies listed on the Athens Stock Exchange (ASE) in the period 1998–2008. Publicly available financial data on the companies included in the ASE during 1998–2008 have been collected and processed. The data sample consists of 245 companies and varies from 2,166 to 1,441 firm-year observations. The research methodology has been based on the extension of the model introduced by Kothari and Sloan (1992) and investigates whether the level of earnings divided by price at the beginning of the stock return period is associated with returns in the context of ‘prices lead earnings’ using annual and quarterly data. Cross-sectional regression analysis points to a significant relationship between earnings and returns on measurement windows of one year and longer. Similar results have been found in the case of a cumulative model where earnings are aggregated up to four years; however, relationship in the short measurement window up to three quarters has resulted in low earnings response coefficients.

Cross-sectional estimation of stock returns in small markets: The case of the Athens Stock Exchange

2003 ◽  
Vol 13 (6) ◽  
pp. 413-426 ◽  
Author(s):  
George Leledakis ◽  
Ian Davidson ◽  
George Karathanassis
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Cross Sectional ◽  
Athens Stock Exchange

scholarly journals The Relationship of Insider Trading Announcements, Ownership Structure and Corporate Governance: An Event Study Analysis of Athens Stock Exchange Market Technology Firms

2019 ◽  
Vol 11 (7) ◽  
pp. 13 ◽  
Author(s):  
Ioannis Antoniadis ◽  
Christos Gkasis ◽  
Stamatis Kontsas
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Event Study ◽  
Insider Trading ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Time Windows ◽  
Abnormal Stock Returns ◽  
Athens Stock Exchange ◽  
The Relationship

In the present paper, the relationship between corporate governance mechanisms of a firm and stock returns triggered by insider trading announcements is examined. Event study methodology has been used to evaluate the influence of 636 insider trading announcements performed by executives of 14 listed firms in the Athens Stock Exchange, that operate in the technology sector, during the period 2007-2013. The relationship between cumulative abnormal stock returns (CARs), caused by the announcements, and corporate governance characteristics, was then examined for different time windows, both for sales and purchases of stocks by insiders. Our findings suggest that insider trading, especially in purchases, performed by CEOs and members of the Boards of Directors, has a significant effect on stock returns in the long run. More specifically concentrated ownership structures and control were found to have a negative/positive effect in abnormal stock returns of the firms only in long-term periods of time following the announcement of purchases/sales.

scholarly journals The Impact of Corporate Cultural Behaviour on Common Stock Return: Some Implications for Corporate Governance

2018 ◽  
Vol 80 (1) ◽  
pp. 115-130
Author(s):  
Chamil W. Senarathne
Keyword(s):  
Corporate Governance ◽  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Common Stock ◽  
Listed Firms ◽  
It Impacts ◽  
Research Questions ◽  
The Impact ◽  
The Relationship

AbstractThis paper examines the relationship between common stock return and corporate cultural behaviour of twenty listed firms from Shanghai Stock Exchange. The particular research questions of this study include: whether corporate cultural behaviour impacts common stock returns and under what conditions it impacts shareholder expectations and corporate governance.

The Valuation Consequence of Accounting Changes: A Multi-Year Examination

1993 ◽  
Vol 8 (4) ◽  
pp. 475-494 ◽  
Author(s):  
Bala G. Dharan ◽  
Baruch Lev
Keyword(s):  
Stock Returns ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Cross Sectional ◽  
Earnings Response Coefficients ◽  
Financial Variables ◽  
Ex Post ◽  
Earnings Response ◽  
Accounting Changes

We examine the valuation impact of changes in the accounting procedures and estimates underlying reported financial data in the year of the change as well as in the postchange years. Since most accounting changes have undisclosed effect on financial variables in subsequent years in addition to the earnings impact disclosed in the year of the change, an accounting change might be motivated by its long-term valuation effect, even if investors are cognizant of the initial earnings impact and fully account for it in the year of the change. This conjecture is empirically examined for the first time in this study. Our tests are based on a cross-sectional examination of the valuation impact of the earnings effect of accounting changes in the year of the change and a longitudinal examination of the behavior of returns in the postchange years. We also provide descriptive evidence indicating that earnings management is a managerial motive for changing accounting techniques. Cross-sectionally, for income-increasing accounting changes, our results show that investors' valuations seem to reflect a concern for the reduced quality of earnings, as reflected by smaller earnings response coefficients and R2s. However, the decline is not attributable specifically to the earnings effect of the accounting change. Similarly, the earnings effect of income-decreasing changes does not have valuation impact in the year of the accounting change. Although investors appear to largely ignore the accounting changes in the year they are made, our longitudinal test does show that firms undertaking accounting changes experience different long-term returns relative to other firms in the postchange period. However, income-increasing accounting changes are associated with negative valuation changes in the postchange period, rather than the positive impact expected from the conjecture stated above. Over the five years following the year of the accounting change, abnormal returns of income-decreasing firms exceed those of income-increasing firms substantially, with the latter firms experiencing large negative returns over the period. We demonstrate a trading rule that, ex post, exploits the information contained in the accounting changes to yield large abnormal stock returns. The results suggest that income-increasing accounting changes are perhaps the first visible sign indicating other hidden, fundamental problems that get revealed in subsequent years.

scholarly journals MANAJEMEN LABA, RETURN SAHAM, DAN KINERJA OPERASI SEBAGAI PEMODERASI

2017 ◽  
Vol 15 (2) ◽  
pp. 133
Author(s):  
Farid Addy Sumantri ◽  
Purnamawati .
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Stock Return ◽  
Operating Performance ◽  
Abnormal Returns ◽  
Return On Assets ◽  
One Year ◽  
Public Offering ◽  
The Relationship

<p><em>The purpose of this study was to determine the indications of the practice of earnings management at the time of the IPO, one year after the IPO, and two years after the IPO. This study also examined the effect of earnings management on stock returns and operating performance in moderating the relationship between earnings management and stock returns.</em></p><p><em>The study sample comprised 33 firms that go public in the year 2007 to 2011 using a purposive sampling method. Earnings management is proxied by discretionary accruals using the Modified Jones Model, which used proxy for the stock return is cummulative abnormal returns (CAR), while for the company's operating performance used proxy for the return on assets (ROA).</em></p><p><em>The results showed that there were indications of earnings management at the time of the IPO, one year after the IPO, and two years after the IPO with a lower profit rate. No effect on earnings management is proxied by stock return cummulative abnormal returns (CAR). Operating performance of the company also can not moderate the relationship between earnings management with stock return.</em></p><p><em> </em></p><p><em>Keywords: Earning Management, Initial Public Offering, Cummulative Abnormal Return, </em><em>Return On Asset</em></p>

scholarly journals THE EFFECT OF FINANCIAL PERFORMANCE ON SHARE RETURN WITH COMPANY SIZE AS MODERATED VARIABLES

2021 ◽  
pp. 58-72
Author(s):  
Anna Christin Silaban
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Sample Selection ◽  
Absolute Difference ◽  
Company Size ◽  
Construction Companies ◽  
Equity Ratio ◽  
The Relationship ◽  
Positive Effect

The purpose of this study are as follows: 1) To examine the effect of ROA on Stock Returns; 2) To assess the effect of CR on Stock Returns; 3) To assess the effect of DER on Stock Returns; 4) To examine the effect of PER on Stock Returns; 5) To assess the effect of PBV on Stock Returns; and 6) To assess the extent to which Company Size can moderate the relationship between ROA, CR, DER, PER, PBV and Stock Return. This type of research used in this study is a casual associative research (causal associative research). The population in this study are property, real estate, and building construction companies that are included in the Kompas 100 index which are listed on the Indonesia Stock Exchange during 2013-2018. Sample selection with purposive sampling method. The analytical method used to test the hypothesis is multiple regression analysis with the absolute difference test. The results showed that: 1) ROA has a positive effect on stock returns; 2) CR does not have a significant positive effect on stock returns; 3) DER has a positive effect on stock returns; 4) PER has a positive effect on stock returns; 5) PBV has no effect on stock returns; and 6) Company size is not able to moderate the relationship between ROA, CR, DER, PER, PBV with stock returns. KEYWORDS: Return On Assets, Current Ratio, Debt to Equity Ratio, Price Earning Ratio, Price to Book Value, Company Size, Stock Return

scholarly journals MANAJEMEN LABA, RETURN SAHAM, DAN KINERJA OPERASI SEBAGAI PEMODERASI

2017 ◽  
Vol 13 (2) ◽  
pp. 61 ◽  
Author(s):  
Farid Addy Sumantri ◽  
Purnamawati ,
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Stock Return ◽  
Operating Performance ◽  
Abnormal Returns ◽  
Return On Assets ◽  
One Year ◽  
Public Offering ◽  
The Relationship

<p>The purpose of this study was to determine the indications of the practice of earnings<br />management at the time of the IPO, one year after the IPO, and two years after the<br />IPO. This study also examined the effect of earnings management on stock returns<br />and operating performance in moderating the relationship between earnings<br />management and stock returns.<br />The study sample comprised 33 firms that go public in the year 2007 to 2011 using<br />a purposive sampling method. Earnings management is proxied by discretionary<br />accruals using the Modified Jones Model, which used proxy for the stock return is<br />cummulative abnormal returns (CAR), while for the company’s operating<br />performance used proxy for the return on assets (ROA).<br />The results showed that there were indications of earnings management at the time<br />of the IPO, one year after the IPO, and two years after the IPO with a lower profit<br />rate. No effect on earnings management is proxied by stock return cummulative<br />abnormal returns (CAR). Operating performance of the company also can not<br />moderate the relationship between earnings management with stock return.<br />Keywords: Earning Management, Initial Public Offering, Cummulative Abnormal<br />Return, Return On Asset</p>

scholarly journals Profitability, Earnings Per Share on Stock Return with Size as Moderation

TRIKONOMIKA ◽  
2017 ◽  
Vol 16 (2) ◽  
pp. 88
Author(s):  
Jumawan Jasman ◽  
Muhammad Kasran
Keyword(s):  
Stock Returns ◽  
Stock Return ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Absolute Difference ◽  
Earnings Per Share ◽  
Relationship Of ◽  
The Relationship

The purpose of this study was to analyze the effect of profitability and earnings per share on stock returns and the role of size as a moderating variable in state-owned companies listed in the Indonesia Stock Exchange (IDX) in the period of 2011-2016. By using purposive sampling, the number of samples included 18 companies. Method was conducted by downloading summary of financial statements in the Indonesia Stock Exchange. The research began with classical assumption test, multiple linear regression analysis was done with the absolute difference test. The research found that profitability had no effect on stock return. Earnings per share and size had a significant negative effect on stock return. The role of size as a moderating variable strengthened the relationship of earnings per share with stock returns, but it did not play a role in the relationship of profitability with stock returns. 

scholarly journals Determinan Earnings Response Coefficient dan Peran Konservatisme Akuntansi sebagai Pemoderasi pada Perusahaan Property dan Real Estate

2018 ◽  
Vol 5 (02) ◽  
pp. 245-258
Author(s):  
Rina Nurmalina ◽  
Suratno Suratno ◽  
Widarto Rachbini ◽  
Syahril Djaddang
Keyword(s):  
Stock Exchange ◽  
Accounting Conservatism ◽  
Earnings Response Coefficients ◽  
Purposive Sampling ◽  
Earnings Response Coefficient ◽  
Conservative Accounting ◽  
Response Coefficient ◽  
Investment Opportunities ◽  
Earnings Response ◽  
The Relationship

ABSTRACT The purpose of this study is to examine the factors that influence the earnings response coefficient consisting of leverage, profitability, and investment opportunities that are moderated by accounting conservatism in companies listed on the Indonesia Stock Exchange in the period 2011-2017. The selection of a sample of 49 year data was used with the purposive sampling method. The results of this study indicate that, leverage has a negative effect on earnings response coefficients. Profitability, investment opportunity sets and accounting conservatism have no significant effect on earnings response coefficients. Conservatism accounting does not moderate the relationship between leverage and profitability to the earnings response coefficient. Conservative accounting moderates the relationship between investment opportunities set at the earnings response coefficient. ABSTRAK Tujuan dari penelitian ini adalah untuk menguji faktor-faktor yang mempengaruhi koefisien respon laba yang terdiri dari leverage, profitabilitas, dan peluang investasi yang dimoderasi oleh konservatisme akuntansi pada perusahaan yang terdaftar di Bursa Efek Indonesia pada periode 2011-2017. Pemilihan sampel sejumlah 49 data tahun digunakan dengan metode purposive sampling. Hasil penelitian ini menunjukkan bahwa, leverage berpengaruh negatif terhadap koefisien respon laba. Profitabilitas, set kesempatan investasi dan konservatisme akuntansi tidak berpengaruh signifikan terhadap koefisien respon laba. Akuntansi konservatisme tidak memoderasi hubungan antara leverage dan profitabilitas terhadap koefisien respons laba. Akuntansi konservatisme memoderasi hubungan antara peluang investasi yang ditetapkan pada koefisien respons laba. JEL Classification: M41, G11

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