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How Quarterly Reports Support the Market

Author

Listed:
  • Natashya NATASHYA

    (Atma Jaya Catholic University of Indonesia)

  • Yanuar Nanok SOENARNO

    (Atma Jaya Catholic University of Indonesia)

Abstract

This study aims to determine the effect of profitability, capital structure and liquidity on earnings response coefficient (ERC). The data used as research objects are 100 manufacturing companies listed on the Indonesia Stock Exchange in 2021. The results revealed that profitability and liquidity have a positive influence on ERC, while capital structure does not affect ERC. The value of profitability has a positive influence on market reactions in making decisions to invest. The high value of a company’s liquidity indicates that the company’s assets are easily sold or liquid, and the company can pay off its short-term debt well. Capital structure does not affect ERC because the information provided is irrelevant.

Suggested Citation

  • Natashya NATASHYA & Yanuar Nanok SOENARNO, 2022. "How Quarterly Reports Support the Market," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 3(9), pages 55-61, September.
    • Handle: RePEc:ahd:journl:v:3:y:2022:i:9:p:55-61
    DOI: 10.37945/cbr.2022.09.06
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    References listed on IDEAS

    as
    1. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    2. Borgards, Oliver & Czudaj, Robert L., 2020. "The prevalence of price overreactions in the cryptocurrency market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 65(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    profitability; capital structure; liquidity; ERC;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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