MARKET REACTIONS TO SOCIAL ETHICS VIOLATION NEWS BY COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Sekar Arum Probowati Rambe, 1411031119 (2018) MARKET REACTIONS TO SOCIAL ETHICS VIOLATION NEWS BY COMPANIES LISTED IN INDONESIA STOCK EXCHANGE. Fakultas Ekonomi dan Bisnis, Universitas Lampung.

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Abstract

This Research aims to investigate the market reaction to unexpected news about the social ethics violation. The news source in this research is from Kompas.com. This Research used Abnormal Return and Trading Volume Activity as variables to investigate the market reaction. This research was used Wilxocon-Signed Rank Test method to analyze the Abnormal Return and Trading Volume Activity. One Sample T-Test was used to find on which day the Abnormal Return occured. The Results of this research show that there is a negative market reaction shown by Abnormal Return Variable, and it occure at t+3. It indicates that the market reacts conservatively and feel overconfidence therefore the respond is late. Meanwhile for Trading Volume Actvity Variable does not show any market reaction after the event. Overall market will only reacts to stock prices meaning news about social ethics violation contain enough information to make the market react. The contribution of this research is as an information to make managerial decisions. Managers should be more aware about the action that they take whether it will harm the company or not Key words: Abnormal Return, Trading Volume Activity, Event Study

Item Type: Other
Subjects: H Ilmu Sosial = Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Fakultas Ekonomi dan Bisnis > Prodi Akuntansi
Depositing User: 201879515 . Digilib
Date Deposited: 16 May 2018 04:20
Last Modified: 16 May 2018 04:20
URI: http://digilib.unila.ac.id/id/eprint/31453

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