Analysis of the Effect of Accounting Information Quality, Institutional Ownership, and Financial Performance on Capital Market Reaction: A Case Study on Company XYZ on the Indonesia Stock Exchange

West Science Accounting and Finance Pub Date : 2023-11-30 DOI:10.58812/wsaf.v1i03.366

Fithriah Napu, Ridwansyah Ridwansyah, Sukardi Sukardi, Efendi Sugianto

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Abstract

This research investigates the interplay between accounting information quality, institutional ownership, financial performance, and capital market reactions within the context of the Indonesia Stock Exchange (IDX). Employing Structural Equation Modeling with Partial Least Squares (SEM-PLS), a diverse sample of IDX-listed companies spanning various sectors, sizes, and leverage levels was analyzed. The measurement model assessment confirmed the reliability and validity of selected indicators, while the structural model revealed significant positive relationships between accounting information quality and institutional ownership with capital market reactions. Surprisingly, financial performance did not show a direct impact on market reactions. The model exhibited a good fit, explaining 60.2% of the variance in capital market reactions. Implications for investors and corporate decision-makers are discussed, emphasizing the strategic importance of transparent reporting and attracting institutional investors. Limitations include cross-sectional data and potential endogeneity concerns. This research contributes to the understanding of market dynamics in the Indonesian context and suggests avenues for future exploration.

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会计信息质量、机构所有权和财务业绩对资本市场反应的影响分析：印度尼西亚证券交易所 XYZ 公司案例研究

本研究以印度尼西亚证券交易所（IDX）为背景，探讨了会计信息质量、机构所有权、财务业绩和资本市场反应之间的相互作用。研究采用偏最小二乘法结构方程模型（SEM-PLS），对 IDX 上市公司的不同行业、规模和杠杆水平进行了分析。计量模型评估证实了所选指标的可靠性和有效性，而结构模型则揭示了会计信息质量和机构所有权与资本市场反应之间的显著正相关关系。令人惊讶的是，财务业绩并未对市场反应产生直接影响。该模型的拟合度较高，解释了资本市场反应 60.2% 的方差。本文讨论了对投资者和企业决策者的启示，强调了透明报告和吸引机构投资者的战略重要性。局限性包括横截面数据和潜在的内生性问题。这项研究有助于了解印尼的市场动态，并为今后的探索提出了建议。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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West Science Accounting and Finance

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