Proceedings of the 3rd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2023, 6 May 2023, Salatiga, Central Java, Indonesia

Research Article

Analysis of Factors Influencing Market Reactions in Companies

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  • @INPROCEEDINGS{10.4108/eai.6-5-2023.2333550,
        author={Muhammad  Ilham and Bambang  Bernanthos},
        title={Analysis of Factors Influencing Market Reactions in Companies},
        proceedings={Proceedings of the 3rd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2023, 6 May 2023, Salatiga, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2023},
        month={7},
        keywords={company size income smoothing earning response},
        doi={10.4108/eai.6-5-2023.2333550}
    }
    
  • Muhammad Ilham
    Bambang Bernanthos
    Year: 2023
    Analysis of Factors Influencing Market Reactions in Companies
    ICLSSEE
    EAI
    DOI: 10.4108/eai.6-5-2023.2333550
Muhammad Ilham1,*, Bambang Bernanthos1
  • 1: Universitas Borobudur, Jakarta, Indonesia
*Contact email: mi05101992@gmail.com

Abstract

This study intends to conclude the effect of association size and pay smoothing on monetary trade reactions. Financial backers, as proprietors of assets, and guarantors, as organizations looking for reserves, meet in a capital market. Investors have a variety of options when it comes to where to put their money. By investing in issuers with the intention of receiving returns from these issuers, investors seek profits. If an investor wants to invest, they need a financial report to find out the information and use it as material for consideration. A tool for obtaining information about a company's finances and performance is the financial report itself. This study employs a quantitative approach. In this study, a nonprobability technique was used for sampling. According to the test results, size has no significant impact on getting a response. Investors will react less negatively to earnings announcements as a result of the amount of information on large companies that is available throughout the year. The test results for the pay smoothing variable show that the relapse coefficient is positive, at 2.242. The t measurable test for the Benefit Sharing variable created a t count worth of 2.242, which was more noteworthy than the t table worth of 1.668. The predetermined significance level of 0.05 was higher than the one that was obtained, which is 0.029. It demonstrates that income smoothing influences the company's market response.