Testing Financial Information in Forming Investor Confidence

DOI

10.2991/icoi-19.2019.78How to use a DOI?

Keywords

market reaction, investor confidence, information, financial performance.

Abstract

This study aims to see how markets react in their investments of information content of corporate financial performance in the capital market. This research has a decomposition attitude for investors to react in response to information of the financial performance of corporations. It begins with evaluating financial fundamental factors in expectation of common market reactions. Object research used is data from the financial reports of manufacturing companies for the years 2008-2017 listed on the Indonesian Stock Exchange. Analysis of data uses logistic regression with probit model and multivariate GLM. To achieve the aim, it will construct a model of market reaction in investment in regard to information of the financial performance of corporation. The research results show that first there are differences in net operating assets, causal growth, and financing assets to companies which have experienced profit both positive and negative. Second, company information had a significant effect on the beliefs of investors. Investors tend to give a reaction when they receive company information containing bad news.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Eka Bertuah
AU  - RA. Nurlinda
PY  - 2019/10
DA  - 2019/10
TI  - Testing Financial Information in Forming Investor Confidence
BT  - Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019)
PB  - Atlantis Press
SP  - 448
EP  - 452
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoi-19.2019.78
DO  - 10.2991/icoi-19.2019.78
ID  - Bertuah2019/10
ER  -