IDEAS home Printed from https://ideas.repec.org/a/khe/scajes/v5y2019i1p74-79.html
   My bibliography  Save this article

Does Indonesia Sustainability Reporting Award (ISRA) Cause Abnormal Return and Stock Trading Volume: A Comparative Analysis

Author

Listed:
  • Hasan Basri
  • Cindi Paramita Februari
  • M. Shabri Abd. Majid

Abstract

Indonesia Sustainability Reporting (ISRA) Award-winning companies promote the image of companies in the eyes of the public. In addition, awardwinning companies cause their stock prices to change, representing by their stocks’ abnormal return and changes in trading volume of the company. This research is aimed at empirically examining the influence of the a Indonesia Sustainability Reporting Award (ISRA) on the abnormal return and stock trading volume of the ISRA award-winning and non-winning companies for 2010-2014 period. It also attempts to test the differences in abnormal return and stock trading volume before and after the companies won the ISRA Award. The results showed that: (1) The ISRA award has no influence on the abnormal return of award-winning and non-winning companies; (2) The ISRA award did not influence the stock trading volume of the award-winning and non-winning companies; (3) There was no difference in abnormal return before and after the companies won the ISRA award; (4) There was differences in abnormal returns before and after the companies won the ISRA award; (5) There was no difference in stock trading volume before and after the companies won the ISRA award; and (6) There was difference in stock trading volume before and after the companies won the ISRA award. These findings showed that the ISRA award was perceived by the firms as the usual award, thus failed to cause the abnormal returns and stock trading volume.

Suggested Citation

  • Hasan Basri & Cindi Paramita Februari & M. Shabri Abd. Majid, 2019. "Does Indonesia Sustainability Reporting Award (ISRA) Cause Abnormal Return and Stock Trading Volume: A Comparative Analysis," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 74-79, March.
    • Handle: RePEc:khe:scajes:v:5:y:2019:i:1:p:74-79
    as

    Download full text from publisher

    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_232.pdf
    Download Restriction: no
    File URL: http://www.ajes.ro/wp-content/uploads/AJES_article_1_232.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Iskandar Muda, 2017. "Role of Dividend of Power to Buy Shares in Companies in Indonesia Stock Exchange," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(2), pages 41-47, June.
    2. Muda, Iskandar, 2017. "Erception of capital, profit and dividends affect the stock purchase intention in Indonesia public company," MPRA Paper 83588, University Library of Munich, Germany.
    3. Iskandar MUDA, 2017. "User Impact of Literacy on Treatment Outcomes Quality Regional Financial Information System," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 5(2), pages 307-326, June.
    4. Ela Mahdaleta & Iskandar Muda & Gusnardi Muhammad Nasir, 2016. "Effects of Capital Structure and Profitability on Corporate Value with Company Size as the Moderating Variable of Manufacturing Companies Listed on Indonesia Stock Exchange," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 2(3), pages 30-43, September.
    5. Iskandar Muda, 2017. "Perception Of Capital, Profit And Dividends Affect The Stock Purchase Intention In Indonesia Public Company," Junior Scientific Researcher, SC Research Publishing SRL, vol. 3(1), pages 9-18, May.
    6. Muda, Iskandar, 2017. "Perception of capital, profit and dividends affect the stock purchase intention in Indonesia public company," MPRA Paper 83658, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erna Handayani & Alni Rahmawati & Eko Haryanto & Sri Wahyuni, 2020. "Abnormal return of Indonesian banking shares in the time of COVID 19:An event study on the announcement of government regulation, POJK 11 of 2020," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(7), pages 108-114, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ridwansyah & Isfenti Sadalia & Yeni Absah, 2018. "The Analysis Of The Influence Of Motivation, Competence, And Incentive Toward Employee Performance At Pt Sianjur Resort, A Housing Developer Of Oma Deli Medan, Indonesia," Junior Scientific Researcher, SC Research Publishing SRL, vol. 4(2), pages 91-106, November.
    2. Siti Aisah Osro & Harmein Nasution & Isfenti Sadalia, 2018. "The Influence Of Emotional Intelligence On The Performance Of Health Department Officers Of Deli Serdang Regency," Junior Scientific Researcher, SC Research Publishing SRL, vol. 4(2), pages 107-125, November.
    3. April Sabdi Marbun & Sukaria Sinulingga & Iskandarini, 2018. "Analysis of Influence of Quality of Service and Quality of Products on Loyalty of Members with Member Satisfaction as Intervening Variable in Loan and Save Cooperative Nasari Branch Office of Medan," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 106-121, September.
    4. Bunga Aditi & Sopi Pentana, 2018. "Analysis of Influence of Micro Small and Medium Enterprises (MSMEs) Development as a Competitive Advantage to Creative Economic Development," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 122-132, September.
    5. Rahmad Hidayat & Isfenti Sadalia & Khaira Amalia Fachrudin, 2018. "Factors Affecting the Financing of Profitability Using Non Performing Financing as Moderating Variable in Sharia Business Unit of Bank Sumut (Bank of North Sumatera) in North Sumatera," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 94-104, March.
    6. Dedi Iskandar Batubara & Heri Kusmanto & M. Arif Nasution & Amir Purba, 2018. "Kaizen and Kanban Implementation in Management of Education to Support of Total Quality Management Improvement at Council of Al Washliyah of North Sumatera, Indonesia," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 154-166, September.
    7. Iskandar Muda & Hasnaini Ridha, 2018. "Effect of Revenue and General Allocation Fund of Capital Expenditures in the Economic Growth as Moderator Variable. Case of Indonesia," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(1), pages 29-39, March.
    8. Hardi Mulyono & Syafrizal Helmi Situmorang, 2018. "e-CRM and Loyalty: A Mediation Effect of Customer Experience and Satisfaction in Online Transportation of Indonesia," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 96-105, September.
    9. Septi Utami Anugrah & Harmein Nasution & Nazaruddin, 2018. "The Influencing Factors Of Turnover On Nurses In Private Hospitals In Binjai City, Indonesia," Junior Scientific Researcher, SC Research Publishing SRL, vol. 4(2), pages 49-66, November.
    10. Zulkifli Osro & Prihatin Lumbanraja & Sitti Raha Agoes Salim & Yeni Absah, 2018. "The Analysis of Personality and Work Ability on the Performance of Outsourcing Employees with Work Motivation as Intervening Variable at Pt Inalum (Persero) in Kuala Tanjung," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(2), pages 90-104, June.
    11. Abdhy Aulia Adnans & Iskandar Muda, 2018. "Neoclassical Growth Model Application To The Analysis Of Human Capital For Regional Development," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(4), pages 1-13.
    12. Hafizah, 2018. "The Influence of Online Media and Social Media on Mass Communication with Communication Technology as Intervening Variables," Business and Economic Research, Macrothink Institute, vol. 8(1), pages 51-67, March.
    13. Rifki Maidasari & Yeni Absah & Elisabet Siahaan, 2018. "An Analysis of the Implication of Workload and Social Support toward Burnout," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 187-198, September.
    14. Anugrah, Septi Utami & Nasution, Harmein & Nazaruddin, Nazaruddin, 2018. "The influencing factors of turnover on nurses in private hospitals in Binjai city, Indonesia," MPRA Paper 92355, University Library of Munich, Germany.
    15. Osro, Siti Aisah & Nasution, Harmein & Sadalia, Isfenti, 2018. "The influence of emotional intelligence on the performance of health department officers of Deli Serdang regency," MPRA Paper 92359, University Library of Munich, Germany.
    16. Anugerah Iman Hrp & Isfenti Sadalia & Khaira Amalia Fachrudin, 2017. "The Effect of Leverage and Financial Distress on Earnings Management with Good Corporate Governance as the Moderating Variable," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(4), pages 86-95, December.
    17. Aditi, Bunga & PENTANA, SOPI, 2018. "Analysis of Influence of Micro Small and Medium Enterprises (MSMEs) Development as a Competitive Advantage to Creative Economic Development," OSF Preprints ejk47, Center for Open Science.
    18. Rizky Putra & Winda Ardiani, 2018. "Effect of Communication Process on Customer Satisfaction in Improving Customer's Retention," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(3), pages 87-95, September.
    19. Desi Astuti & Paham Ginting & Isfenti Sadalia & Amlys Syahputra Silalahi, 2018. "The Influence of Financial Education and Promotion towards Risk Perception of Students as Investors at University Investment Gallery," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(2), pages 51-60, June.
    20. Ridwansyah, Ridwansyah & Sadalia, Isfenti & Absah, Yeni, 2018. "The analysis of the influence of motivation, competence, and incentive toward employee performance at pt Sianjur resort, a housing developer of Oma Deli Medan, Indonesia," MPRA Paper 92358, University Library of Munich, Germany.

    More about this item

    Keywords

    ISRA award announcement; abnormal return; stock trading volume;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:khe:scajes:v:5:y:2019:i:1:p:74-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adi Sava (email available below). General contact details of provider: https://edirc.repec.org/data/ffucdro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.