Market Responses Around the Publication Dates of Annual Financial Report
top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 25 January 2022

Market Responses Around the Publication Dates of Annual Financial Report

Julyana Julyana, Rosemarie Sutjiati Njotoprajitno, Bram Hadianto

Maranatha Christian University, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.05.01.403

Pages: 46-51

Keywords: Inefficient Market in the Semi-Strong Shape, Informational Content, Market Reaction

Abstract

This research intends to investigate the market efficiency in the semi-strong shape by examining the response from the market participation around the annual financial report publication dates as the event. Moreover, to attain this intention, this study uses thirty-three consumer goods companies in the Indonesian capital market between 2018 and 2020 as samples. We use the Slovin formula and simple random sampling technique separately to count and take them. Furthermore, we check the proposed hypothesis by a one-sample t-test for each response from the market during the event period, i.e., twenty-one days. Based on the examination of market reaction, we infer that this reaction happens before, on, and after the publication date of the financial report. In other words, this circumstance supports the inefficient market in this shape.

References

  1. Ghozali, I. (2016). Multivariate Analysis Application by IBM SPSS 23 (8 ed.). Semarang: Badan Penerbit Universitas Diponegoro.

  2. Grabner-Kräuter, S. (2018). The SAGE Encyclopedia of Business Ethics and Society. In R. W. Kolb (Ed.), Consumer Goods (pp. 641-642). Thousand Oaks: SAGE Publications. Retrieved from http://dx.doi.org/10.4135/9781483381503.n236

  3. Hartono, J. (2012). Business Research Methodology: Misunderstanding and Experiences. Yogyakarta: Badan Penerbit Fakultas Ekonomi Universitas Gadjah Mada.

  4. Hartono, J. (2017). Portfolio Theory and Investment Analysis (11 ed.). Yogyakarta: Badan Penerbit Fakultas Ekonomi Universitas Gadjah Mada.

  5. Menike, M., & Wang, M. (2013). Stock market reactions to the release of annual financial statements: Case of the banking industry in Sri Lanka. European Journal of Business and Management, 5(31), 75-86. https://iiste.org/Journals/index.php/EJBM/article/view/9467

  6. Ministry of Industry of the Indonesia Republic. (2019, April 24). The national contribution of Indonesian achieves 20%, the word position in the word is the fifth. https://kemenperin.go.id/artikel/20579/Kontribusi-Manufaktur-Nasional-Capai-20-Persen,-RI-Duduki-Posisi-Ke-5-Dunia

  7. Nirujah, R. (2015). Stock market reaction to the release of annual financial statements: A study on selected listed banking finance and insurance companies in Sri Lanka. The fifth International Conference on Contemporary Management (pp. 1-16). Karainagar: University of Jaffna. http://dx.doi.org/10.2139/ssrn.3321020

  8. Ong, M., & Marheni, D. K. (2021). The effect of Covid-19 on stock market return in the consumer goods sector in Indonesia. Jurnal Ilmiah Manajemen, Ekonomi, dan Akuntansi, 5(3), 1779-1793. http://journal.stiemb.ac.id/index.php/mea/article/view/1641

  9. Setyastrini, N. L. P., & Kaluge, D. (2019). The delay in the financial statement publication and its influencing factors: Empirical testing on manufacturing companies in the Indonesia Stock Exchange. Jurnal Akuntansi & Ekonomi, 4(3), 66-82. https://doi.org/10.29407/jae.v4i3.12950

  10. Shanti, S. (2012). Investor reaction to the financial reports published in mass media. Jurnal Bisnis dan Akuntansi, 14(3), 247-264. https://jurnaltsm.id/index.php/JBA/article/view/151

  11. Sharma, R., & Chander, R. (2009). Earnings announcements and stock price behavior on Indian stock markets. Asia-Pacific Business Review, 5(3), 117-126. https://doi.org/10.1177%2F097324700900500313

  12. Siyanbola, T. T. (2012). The impact of stock valuation on the profitability of manufacturing industries. International Journal of Advanced Research in Management and Social Sciences, 1(2), 35-46. https://garph.co.uk/ijarmss/aug2012/3.pdf

  13. Suliyanto. (2009). Business Research Method. Yogyakarta: Penerbit ANDI.

  14. Sunariyah, S. (2011). Introduction to Capital Market Knowledge (6 ed.). Yogyakarta: UPP AMP YKPN.

  15. Syed, A. M., & Bajwa, I. A. (2018). Earnings announcements, stock price reaction and market efficiency – The case of Saudi Arabia. International Journal of Islamic and Middle Eastern Finance and Management, 11(3), 416-431. https://doi.org/10.1108/IMEFM-02-2017-0044

  16. Szirmai, A., & Verspagen, B. (2015). Manufacturing and economic growth in developing countries, 1950-2005. Structural Change and Economic Dynamics, 34, 46–59. https://doi.org/10.1016/j.strueco.2015.06.002

  17. Virginia, S., Manurung, E. T., & Muliawati, M. (2012). The impact of earning announcement on abnormal stock return. Jurnal Administrasi Bisnis, 8(1), 1-20. https://journal.unpar.ac.id/index.php/JurnalAdministrasiBisnis/article/view/421/405

bottom of page