Rambe, Sekar Arum Probowati and Sarumpaet, Susi and Sukmasari, Dewi Market Reaction to Social Ethics Violation News By Companies Listed in Indonesia Stock Exchange. In: The 4th Indonesian Finance Association International Conference, 5-6 September 2018, Bandar Lampung Indonesia.
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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 is used to find on which day the Abnormal Return occurred. The Results of this research show that there is a negative market reaction shown by Abnormal Return Variable, and it occurs at t+3. It indicates that the market reacts overconfidence and misjudge the situation, therefore, the response is late. Meanwhile, for Trading Volume, Activity Variable does not show any market reaction after the event. Overall market will only react 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 of the action that they take whether it will harm the company or not Keywords: Social Ethics Violation, Abnormal Return, Trading Volume Activity
| Item Type: | Conference or Workshop Item (Paper) |
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| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Depositing User: | Susi Sarumpaet |
| Date Deposited: | 18 Oct 2019 03:13 |
| Last Modified: | 18 Oct 2019 03:13 |
| URI: | http://repository.lppm.unila.ac.id/id/eprint/14425 |
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