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Stock price synchronicity, sustainability reports, and earnings quality

Author

Listed:
  • Utari Dian Pratiwi

    (Accounting Departement, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia)

  • Erwin Saraswati

    (Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia)

  • Arum Prastiw

    (Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia)

Abstract

Stock Price Synchronicity is a calculation used to show the proportion of the company's internal and external information accumulated into the stock price. This study aims to examine internal information in the form of sustainability reports and earnings quality on stock price synchronicity. Furthermore, this study also aims to examine the moderating effect of institutional investors as an indicator of sophisticated investors. The population in this study is a go-public manufacturing company on the Indonesia Stock Exchange (BEI). The sample was determined by the purposive sampling method. This research uses multiple regression analysis methods with a panel data form. The results showed that companies with a higher quality of sustainability reports had lower stock price synchronicity and institutional investors did not have a moderating effect in this relationship. The results also show that companies that have higher earnings quality have high stock price synchronicity as well. This relationship changes when the institutional investor moderation variable is added. Companies with higher earnings quality have lower stock price synchronicity values. Key Words: Sustainability Report, Earnings Quality, Stock Price Synchronicity, Stock Price, Stock Market

Suggested Citation

  • Utari Dian Pratiwi & Erwin Saraswati & Arum Prastiw, 2021. "Stock price synchronicity, sustainability reports, and earnings quality," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(1), pages 139-148, January.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:1:p:139-148
    DOI: 10.20525/ijrbs.v10i1.988
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    References listed on IDEAS

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    1. Raden Roro Widya Ningtyas Soeprajitno & Sri Ningsih & Iman Harymawan & Bablu Kumar Dhar & Suham Cahyono, 2023. "The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia," SAGE Open, , vol. 13(4), pages 21582440231, December.

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