Investor reaction to R&amp;D investment

Li, Xin; Wang, Tienan

doi:10.1108/ijis-06-2016-009

Cited by 4 publications

(3 citation statements)

References 53 publications

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“…Adopting the research of Li & Wang (2016), in the sensitivity test of this study, a regression test was conducted to analyze the effects of earnings quality and audit quality as well as financial performance moderation on closing stock prices on the deadline for submitting financial statements according to Indonesian regulations. As illustrated in Table 4, earnings quality with a sig value of 0.174 and audit quality with a value of sig 0.603 explains that investors do not react to earnings quality and audit quality at the end of the third month of the following year, this is because many companies have not submitted financial statements, even though there are rules that require the submission of financial statements by that time.…”

Section: Data Analysis and Resultsmentioning

confidence: 99%

“…In this study, investor reactions are proxied on the closing stock price at the time the issuer's financial statements are published (Fahlevi, Asmapane, & Oktavianti, 2018). In the sensitivity test, investor reactions are measured by adopting the research of Li & Wang (2016), who used the closing stock price at the deadline for submitting financial statements according to regulations on the stock exchange. In Indonesia, the deadline for submitting financial statements is the end of the third month after the end of the financial year, as stated in KEP-346/BL/2011.…”

Section: Dependent Variablesmentioning

confidence: 99%

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Earnings Quality and Audit Quality: Analysis of Investor Reaction

Tarmidi¹,

Murwaningsari²,

Ahnan³

2021

Humanities and Social Sciences Letters

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This study aims to analyze investor reaction to management behavior in preparing financial reports, especially earnings quality and audit quality. We also analyze the effect of financial performance as moderation. Generally, investors react positively to a company's financial performance, but the amount of fraud surrounding financial information, including auditor cooperation, raises big questions for investors about a company's financial information. We analyzed companies within the manufacturing sector that were listed on the Indonesia Stock Exchange from 2015 to 2019, and it was found that investors reacted positively to earnings quality and audit quality moderated by financial performance. These results provide evidence that management should focus on earnings quality in financial reports and on the audit process to ensure quality and exceptional financial performance to obtain positive reactions from investors, which has a positive impact on increasing the value of companies' shares. This study used the stock prices on the publication date of the financial statements, which reflect the direct reactions of investors to the information contained in the financial statements, such as earnings quality, audit quality, and financial performance. The different investor reactions were apparent on the day of the deadline for submitting financial statements according to existing regulations. These results reflect that the use of stock prices on the publication dates more accurately describes the reaction of investors than on the deadline for submitting financial statements. Contribution/Originality:This study contributes to existing literature by investigating investor reaction to management behavior in preparing financial reports, especially earnings quality and audit quality. INTRODUCTIONThe change in the status of a private company to a public company is based on several reasons, one of which is receiving funding from investors through buying and selling shares on the stock exchange. As an internal entity aware of the ins and outs of a company's internal transactions, management will make various efforts to portray their companies positively to attract investors.As people who do business, on the other hand, investors do not want to be reckless when making choices in stock transactions. Some investors consider the maximum return in the form of returns in the short term, while other groups consider stable returns in the long term, including a company's relationship with the community (Waluyo, 2017). Of the two types, investors' analysis of the issuer will differ as well as their reactions to the information published by the issuer through annual reports and financial reports (Melgarejo, Montiel, & Sanz, 2016;Sunder, 2017).

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Section: Data Analysis and Resultsmentioning

confidence: 99%

Section: Dependent Variablesmentioning

confidence: 99%

Earnings Quality and Audit Quality: Analysis of Investor Reaction

Tarmidi¹,

Murwaningsari²,

Ahnan³

2021

Humanities and Social Sciences Letters

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“…The risk management process must be applied at different levels of the organization, FIRA divides the scope of implementation of the risk management process into two, Internal and External. The internal scope consists of marketing risk, operational risk, human resource risk and financial risk (Amalia et al, 2019;Anggraeni &;Rizal, 2019;Primary, 2020). While the external scope is divided into user risk, business partner risk, government risk and other risks.…”

Section: Risk Identificationmentioning

confidence: 99%

Risk Management Design in Startup Company PT. Financial Statement Assistant

Hutapea,

Syah,

Hamdi

et al. 2023

jss

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Rapid technological development encourages Indonesia's economic growth. The background of this study is the ignorance of start-up companies about the existence of business risks and bankruptcy failures. The purpose of this study is to develop risk management plans and guidelines according to ISO 31000: 2018 The company strives to support business progress by recruiting qualified workers in their fields to be responsible for technological innovation and security of the company's database. Risk management can be applied to minimize the risk of business processes to achieve business objectives

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