EFFECT OF KAP SUBSTITUTION AND ANNUAL REPORT DISCLOSURE ON MARKET REACTIONS
DOI:
https://doi.org/10.32493/eaj.v2i2.y2019.p149-158Keywords:
Market ReactionAbstract
The purpose of this study is to find out how much the market reaction is influenced by the substitution of KAP and disclosure of annual reports in a given period. Abnormal Return is used as a measurement for market reactions while the variables used in this study are Substitution of KAP and mandatory disclosures used to measure disclosure of annual reports. The data use form of audited financial statements by an independent auditor obtained from the official IDX website www.IDX.com using a purposive sampling method based on certain criteria. Samples in this study were 16 manufacturing companies listed on the Indonesia Stock Exchange in 2012-2016. So that the total sample obtained is 80 company data. Hypothesis testing is done by using multiple linear regression data analysis techniques. Data is collected, then processed and analyzed using the SPSS 22.0 for Windows application program. The results of this study are Substitution of KAP had a significant effect while the disclosure of the annual report had no effect, but the two variables simultaneously had an effect on the market reaction.
References
Andriyanto, R., Effriyanti, E., & Hidayat, A. (2018). The Effect of Spiritual Intelligence (SQ) and Personality Types on Auditor’s Ability to Detect Fraud. JABI (Jurnal Akuntansi Berkelanjutan Indonesia), 1(3), 258-268.
Ayu, Maristiana. (2012). Effect of Information Quality Disclosure on Stock Trading Volume and Stock Returns (Empirical Study on LQ45 Companies on the IDX). Lecturer at the Faculty of Economics, Sang Bumi University Ruwa Jurai. Bandar Lampung.
Banda, Putra and Yosefa Sayekti. (2015). Analysis of Market Reactions to Substitution of Public Accounting Firms and Audit Opinions (Empirical Study on LQ45 Companies in 2012-2014). Student Scientific Article Jember University.
Diaz, Marsela. (2009). Analysis of Market Reactions to Substitution Announcements of Public Accountants (Studies in public companies in Indonesia). Thesis, Master of Accounting, Universitas Brawijaya.
Fajrina, Goesti Nahru.(2014). Effects of Substitution of Public Accounting Firms and Audit Opinions on Market Reactions (Study of Manufacturing Companies Listed on the Stock Exchange for the 2009-2012 Period). Essay. Bachelor of Accounting, Islamic University of Sultan Ageng. Semarang.
Handoko, Sony Cokro. (2014). Substitution Analysis of Public Accountants' Office and Timeliness in Submitting Financial Reports to Market Reactions (Empirical Study on IDX 2009-2012 Period). Thesis, Bachelor of Economics, Diponegoro University.
Hidayat, A., & Yuliah, N. (2018). The Effect of Good Corporate Governance and Tax planning on Company Value. EAJ (Economics and Accounting Journal), 1(3), 234-241.
Decree of the Minister of Finance of the Republic of Indonesia. (2002). About Public Accountant Services No. 423 / KMK.06 / 2002, Jakarta.
Mulyadi. (2009). Salemba Empat Accounting System. Jakarta.
Ngaijan. (2011). Analysis of the Effects of Substitution of Public Accountant Offices and Audit Opinions on Market Reactions. Saintek Maritim Journal, Vol. XVI No. March 2, 2017. Semarang.
Regulation of the Minister of Finance of the Republic of Indonesia. 2008. About Public Accountant Service No. 17 / PMK.01 / 2008, Jakarta.
Financial Services Authority Regulation. (2016). About the Annual Report Number 29 / POJK.04 / 2016, Jakarta.
Government Regulation of the Republic of Indonesia. (2015). About the Practice of Public Accountants No. 20 of 2015, Jakarta.
Scott, W.R. (2009). Financial Accounting Theory. Fifth Edition. Toronto: Pearson Prentice Hall.
Sofiana, Nina. (2010). Analysis of the Effect of Company Characteristics on Completeness of Disclosures in the Annual Report of Manufacturing Companies Listed on the IDX. Essay. Muhammadiyah Surakarta university. Surakarta.
Ulum, Ihyaul. (2009). Intellectual Capital: Concepts and Empirical Studies. Graha Ilmu, Yogyakarta
Vahini, Yuni Prema and Nyoman Wijan Asmara Putra. (2014). Event Study: Analysis of Investor Reactions on Publication of Annual Financial Reports. Udayana University Accountancy E-Journal Vol. 13 No. Nov. 2, 2015 (pp. 387-404). Bali.
Veronica, Emilia Mega. (2015). Effect of Substitution of Public Accountant Offices on Market Reactions (Empirical Study on Manufacturing Companies 2010- 2014). Essay. Perbanas College of Economics. Surabaya
Warsono, S. (2010). Accounting Reform: Dismantling Bounded Rationality in Accounting Development. Asgard Chapter.
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
<a rel="license" href="http://creativecommons.org/licenses/by-sa/4.0/"><img alt="Creative Commons License" style="border-width:0" src="https://i.creativecommons.org/l/by-sa/4.0/88x31.png" /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by-sa/4.0/">Creative Commons Attribution-ShareAlike 4.0 International License</a>.
