Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)

Investor Response to Financial Performance and Business Prospect

Evidence from Consumer Goods Sector

Authors
Juniarti Juniarti1, *, Ferren Chandra1, Olivia Shannen Tandyono1
1Department of Business Accounting, Petra Christian University, Surabaya, Indonesia
*Corresponding author. Email: d12180057@gmail.com
Corresponding Author
Juniarti Juniarti
Available Online 25 November 2021.
DOI
10.2991/aebmr.k.211124.044How to use a DOI?
Keywords
Business prospect; Consumer goods sector; Financial performance; Investor response; Merger & acquisition
Abstract

Financial performance is an essential instrument in decision making. However, over time, many researchers stated that the relevance of financial statement information had decreased so that investors did not respond positively to financial performance. Furthermore, investors view corporate action simply because it adds value and growth to the company. This study was conducted to compare investor responses to M&A and financial performance. We tested the model on a sample of 213 companies from the consumer goods sector in ASEAN with CAR as the dependent variable, dummy, EPS, ROA, and CFO / TA as independent variables, and firm size and firm leverage as control variables. We found that investors responded negatively to M&A, while financial performance as measured by ROA and CFO / TA reacted positively. From these findings, we propose that company managers can consider a strategy of conducting M&A to attract investors and add value to the company.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
25 November 2021
ISBN
10.2991/aebmr.k.211124.044
ISSN
2352-5428
DOI
10.2991/aebmr.k.211124.044How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Juniarti Juniarti
AU  - Ferren Chandra
AU  - Olivia Shannen Tandyono
PY  - 2021
DA  - 2021/11/25
TI  - Investor Response to Financial Performance and Business Prospect
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 301
EP  - 317
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.044
DO  - 10.2991/aebmr.k.211124.044
ID  - Juniarti2021
ER  -