The Effect of Managerial Ability and Tone of Earnings Announcements towards Market Reactions

Authors

  • Zaenal Fanani Acounting Department, Economic and Business Faculty, Universitas Airlangga, Jl. Airlangga No.4, Surabaya
  • Zakiyyah Riris Merbaka Acounting Department, Economic and Business Faculty, Universitas Airlangga, Jl. Airlangga No.4, Surabaya

:

https://doi.org/10.9744/jak.22.1.10-17

Keywords:

Managerial Ability, Tone of Earnings Announcement, Market reaction

Abstract

This study aims to examine and analyse the effect of Managerial Ability, Tone of Earnings Announcements, and Market Reactions. Using Return on Asset and Firm Size as control variables. In this study population taken is manufacturing companies that are listed on the Indonesia Stock Exchange during the year 2015-2016. Based on the population criteria set, the sampling method is purposive sampling. The sa

Author Biography

Zaenal Fanani, Acounting Department, Economic and Business Faculty, Universitas Airlangga, Jl. Airlangga No.4, Surabaya

Departemen Akuntasi Fakultas Ekonomi dan Bisnis Universitas Airlangga

References

Arslan-Ayaydin, Ö., Boudt, K., and Thewissen, J. (2016). Managers set the tone: Equity incentives and the tone of earnings press releases. Journal of Banking and Finance, 72, 132-147.

Ball, R., and Brown, P. (1968). An empirical evaluation of accounting income numbers. Journal of Accounting Research, 159-178.

Brigham, E. F., and Houston, J. F., Manajemen Keuangan, edisi 8, Buku 1., Jakarta, 2001.

Davis, A. K., Ge, W., Matsumoto, D., and Zhang, J. L. (2015). The effect of manager-specific optimism on the tone of earnings confe¬rence calls. Review of Accounting Studies, 20(2), 639-673.

Demerjian, P., Lev, B., and McVay, S. (2012). Quantifying managerial ability: A new measure and validity tests. Management science, 58(7), 1229-1248.

Demers, E., and Vega, C. (2014). Understanding the role of managerial optimism and uncertainty in the price formation process: evidence from the textual content of earnings announcements. Working Paper. www.ssrn. com

Frankel, R., Mayew, W. J., and Sun, Y. (2010). Do pennies matter? Investor relations consequences of small negative earnings surprises. Review of Accounting Studies, 15(1), 220-242.

Henry, E., and Leone, A. J. (2015). Measuring qualitative information in capital markets research: Comparison of alternative methodologies to measure disclosure tone. The Accounting Review, 91(1), 153-178.

Huang, X., Teoh, S. H., and Zhang, Y. (2013). Tone management. The Accounting Review, 89(3), 1083-1113.

Lestari, M.I, and Sugiharto, T. (2007). Kinerja Bank Devisa dan Bank Non Devisa dan Faktor-Faktor Yang Memengaruhinya. Proceeding PESAT.

Jogiyanto, H. M., Teori portofolio dan analisis investasi, BPFE. Yogyakarta, 2003.

Loughran, T., and McDonald, B. (2011). When is a liability not a liability? Textual analysis, dictionaries, and 10‐Ks. The Journal of Finance, 66(1), 35-65.

Loughran, T., and McDonald, B. (2015). The use of word lists in textual analysis. Journal of Behavioral Finance, 16(1), 1-11.

Luo, Y., and Zhou, L. (2017). Managerial ability, tone of earnings announcements, and market reaction. Asian Review of Accounting, 25(4), 454-471.

Naim, M. (2000). Fads and fashion in economic reforms: Washington Consensus or Washington Confusion? Third World Quarterly, 21(3), 505-528.

Niresh, A., and Thirunavukkarasu, V. (2014). Firm size and profitability: A study of listed manufacturing firms in Sri Lanka. International Journal of Business and Management, 9(4).

Price, S. M., Doran, J. S., Peterson, D. R., and Bliss, B. A. (2012). Earnings conference calls and stock returns: The incremental informativeness of textual tone. Journal of Banking and Finance, 36(4), 992-1011.

Spence, M. (1978). Job market signaling Uncertainty in Economics. The Quarterly Journal of Economics, 281-306.

Tama-Sweet, I. (2014). Changes in earnings announcement tone and insider sales. Advances in Accounting, 30(2), 276-282.

Downloads

Published

2020-05-27

How to Cite

Fanani, Z., & Merbaka, Z. R. (2020). The Effect of Managerial Ability and Tone of Earnings Announcements towards Market Reactions. Jurnal Akuntansi Dan Keuangan, 22(1), 10-17. https://doi.org/10.9744/jak.22.1.10-17

Issue

Section

Articles