Pengungkapan Non Financial Measures: Penilaian Value Relevance Bagi Investor Dan Pengaruhnya Terhadap Cost of Equity Dan Performance Bagi Perusahaan Publik

Wondabio, Ludovicus Sensi

doi:10.21002/jaki.2007.03

Cited by 4 publications

(10 citation statements)

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“…Astuti and Syahyunan (2013) shown that non-financial information has value relevance to the company performance. Whereas, Wondabio (2007) focusing on cost of equity suggested that non-financial information has negative significant value relevance to cost of equity.…”

Section: ⅰ Introductionmentioning

confidence: 99%

Value Relevance of Financial and Non-Financial Information to Investor Decision

Honggowati¹

2015

Glob Bus Financ Rev

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The objective of this study is to examine the value relevance of financial and non-financial information to investor decision. Investors determine investment decisions from financial and non-financial information. In this research investor decision reflected on company's market performance, market performance is measured using Cumulative Abnormal Return (CAR). Financial information is measured using Return on Assets (ROA) and non-financial information using three components of Balanced Scorecard Method, which reflect, customer perspective, internal business process perspective, and learning and growth perspective. This study uses multiple regression to analyze the data of 121 manufacturing companies listed on Indonesia Stock Exchange (IDX) for the period 2010-2012. Sampling method in this research is conducted by the purposive sampling method. The findings show that the financial information which is measured by using the Return on Assets (ROA) was positively related to the market performance. On the other, from three components consist in non-financial information, customer perspective and internal busines and learning growth that has relation with market performance. Finally the results fully confirm the existence of a relationship between financial and non-financial information on market performance. Keywords: Cumulative Abnormal Return; Return on Assets; Customer Perspective; Internal Business Perspective; Learning andGrowth Perspective Ⅰ. IntroductionIn today's market, the changes in the business world from the industrial era into the information era are influenced by economic growth and technological advancement. Technological advancements can be used to obtain the information for the company to strengthen their market position. † Setianingtyas Honggowati Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia E-mail: setianingtyas_27@yahoo.co.id On the contrary, information of company's activities can be useful information to the other parties (e.g. regulators, competitors).Company's information was being able to effecting investor's and stakeholders decision-making processes. Chiung and Ming (2005) suggested that investment decision affect the company's market performance through stock price. Chiung and Ming (2005) suggested that investment decisions affect market performance through stock price. Then, the stock price changes reflect changes in the rate of expected returns or the rate of potential risks (Riley, Pearson and Trompeter, 2003;Wiersma,

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Section: ⅰ Introductionmentioning

confidence: 99%

Value Relevance of Financial and Non-Financial Information to Investor Decision

Honggowati¹

2015

Glob Bus Financ Rev

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“…The existence of asymmetric information between management parties that have full corporate information with the investors who are considered to have less information led to the theory of signals [11]. Direct disclosures are conducted and become signals that are relevant to financial information so that the market value of a company's stock can increase and reflect the company's value, while the other signal is indirect.…”

Section: A Contract Agency and Signaling Theorymentioning

confidence: 99%

“…The model 1 hypothesis examines prospector, defender, and analyser strategy influence the disclosure level of nonfinancial information. Based on research conducted by Wondabio [11], company with prospector strategy has wider disclosure nonfinancial information. The control variable for this research is industry type, age, ownership structure and firm size.…”

Section: A Conceptual Frameworkmentioning

confidence: 99%

“…There are 3 company strategies, prospector, defender, and analyzer [36]. Companies that have a prospector strategy see market opportunities and experiments at any time [11]. This strategy focus on innovation and creativity to create new product so spend a lot of for capital expenditure [2].…”

Section: Introductionmentioning

confidence: 99%

“…The benefits of the disclosure level of nonfinancial information are quite widely researched as pertains to lowering the cost of capital stock [11,14,15], increasing abnormal returns [16], increasing trading volume [17], and increasing value relevance [5]. It is still interesting to examine the benefits to increasing abnormal returns, due to companies frequently providing a signal to investors with the aim that the stock market value of the company can reflect the company's value.…”

Section: Introductionmentioning

confidence: 99%

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Influence of Nonfinancial Information on Abnormal Returns

Arianto¹,

Mita²

2019

Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)

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Financial information has a weakness in biases as a reference in decision making by investors. Nonfinancial information is needed to supplement financial information to show a company's overall profile. This study aims to analyze the level of nonfinancial information disclosure and influence of prospector, defender, and analyzer strategies to level of nonfinancial information disclosure with control variable industry, age, share owned by public, and size of the company. The research also examines whether the level of nonfinancial information disclosure has a negative influence on abnormal returns with return on equity (ROE) and price-book value (PBV) as the control variables. The research is quantitative, with a sample number of 819 company annual reports from the period between 2014 and 2015, as listed on the Indonesia Stock Exchange. The research explains that prospector strategy has significantly positive influence on the level of nonfinancial information disclosure and defender strategy has significantly negative influence on the level of nonfinancial information disclosure. The industry, age, and share owned by the public have significantly positive influence on level of nonfinancial information disclosure. The research also finds that the level of nonfinancial information disclosure has a significantly positive influence on abnormal returns. While ROE has an insignificantly positive influence on abnormal returns, PBV has a significantly negative influence.

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The effect of market pricing accrual, foreign ownership, financial distress, and leverage on the integrity of financial statements

Malau

Murwaningsari

2018

Ekon an

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The purpose of this research is to analyse the effect of market pricing accrual, foreign ownership, financial distress, and leverage on the integrity of financial statements, using multiple regression analysis and logistic regression. The research uses 363 samples, comprising the data of 121 manufacturing companies listed on the Indonesia Stock Exchange over three years, from 2013 to 2015. The results show that market pricing accrual has a significant positive influence on the integrity of financial statements, while a company's leverage has a significant negative influence. Bankruptcy and foreign ownership have no significant effect on financial statements' integrity. Based on the research results, when assessing the integrity of financial statements a company's stakeholders should pay most attention to market pricing accrual and the company's leverage. In addition, regulators should produce standards or guidelines governing the company's remit and responsibilities regarding financial statements.

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Pengungkapan Non Financial Measures: Penilaian Value Relevance Bagi Investor Dan Pengaruhnya Terhadap Cost of Equity Dan Performance Bagi Perusahaan Publik

Cited by 4 publications

References 0 publications

Value Relevance of Financial and Non-Financial Information to Investor Decision

Value Relevance of Financial and Non-Financial Information to Investor Decision

Influence of Nonfinancial Information on Abnormal Returns

The effect of market pricing accrual, foreign ownership, financial distress, and leverage on the integrity of financial statements

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