Open AccessStock price synchronicity, sustainability reports, and earnings quality
Author(s) -
Utari Dian Pratiwi,
Erwin Saraswati,
Arum Prastiw
Publication year - 2021
Publication title -
international journal of research in business and social science
Language(s) - English
Resource type - Journals
ISSN - 2147-4478
DOI - 10.20525/ijrbs.v10i1.988
Subject(s) - synchronicity , stock exchange , business , moderation , earnings quality , stock (firearms) , earnings per share , earnings , population , sustainability , economics , financial economics , accounting , finance , statistics , mechanical engineering , ecology , philosophy , demography , mathematics , accrual , epistemology , sociology , engineering , biology
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.