Systematic risk and accounting determinants: A new perspective from an emerging market
This study is to test the influences of basic accounting determinants on Indonesian manufacturing industry's systematic risk in the most-recent period, 2005-2007, in order to capture the latest market's perspectives and preferences. By using current ratio, debt to total asset ratio, Long-t...
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| Format: | Article |
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Inderscience Publishers
2013
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| _version_ | 1825804148345405440 |
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| author | Aruna, Dian Citra Warokka, Ari |
| author_facet | Aruna, Dian Citra Warokka, Ari |
| author_sort | Aruna, Dian Citra |
| collection | UUM |
| description | This study is to test the influences of basic accounting determinants on Indonesian manufacturing industry's systematic risk in the most-recent period, 2005-2007, in order to capture the latest market's perspectives and preferences. By using current ratio, debt to total asset ratio, Long-term Debt to Total Asset (LDTA) ratio, firm size, and growth as the proxies for accounting determinants and beta as the proxy for systematic risk, we investigated 15 top and most-traded Indonesian manufacturing firms' stocks.The results revealed a striking and surprising phenomenon, which no accounting determinants influence at all the systematic risk.It demonstrated the market behaviour that paid less attention to the financial statement information, and seemed to focus more on technical analysis in making an investment decision.It implicitly highlighted on how to manage a market that seemingly is sensitive to non-fundamental factors, i.e., market sentiment and macroeconomic rumours, the main drivers of technical analysis. |
| first_indexed | 2024-07-04T06:09:43Z |
| format | Article |
| id | uum-19127 |
| institution | Universiti Utara Malaysia |
| last_indexed | 2024-07-04T06:09:43Z |
| publishDate | 2013 |
| publisher | Inderscience Publishers |
| record_format | eprints |
| spelling | uum-191272016-11-10T03:45:56Z https://repo.uum.edu.my/id/eprint/19127/ Systematic risk and accounting determinants: A new perspective from an emerging market Aruna, Dian Citra Warokka, Ari HB Economic Theory This study is to test the influences of basic accounting determinants on Indonesian manufacturing industry's systematic risk in the most-recent period, 2005-2007, in order to capture the latest market's perspectives and preferences. By using current ratio, debt to total asset ratio, Long-term Debt to Total Asset (LDTA) ratio, firm size, and growth as the proxies for accounting determinants and beta as the proxy for systematic risk, we investigated 15 top and most-traded Indonesian manufacturing firms' stocks.The results revealed a striking and surprising phenomenon, which no accounting determinants influence at all the systematic risk.It demonstrated the market behaviour that paid less attention to the financial statement information, and seemed to focus more on technical analysis in making an investment decision.It implicitly highlighted on how to manage a market that seemingly is sensitive to non-fundamental factors, i.e., market sentiment and macroeconomic rumours, the main drivers of technical analysis. Inderscience Publishers 2013 Article PeerReviewed Aruna, Dian Citra and Warokka, Ari (2013) Systematic risk and accounting determinants: A new perspective from an emerging market. Journal for Global Business Advancement, 6 (1). pp. 24-37. ISSN 1746-966X http://doi.org/10.1504/JGBA.2013.053476 doi:10.1504/JGBA.2013.053476 doi:10.1504/JGBA.2013.053476 |
| spellingShingle | HB Economic Theory Aruna, Dian Citra Warokka, Ari Systematic risk and accounting determinants: A new perspective from an emerging market |
| title | Systematic risk and accounting determinants: A new perspective from an emerging market |
| title_full | Systematic risk and accounting determinants: A new perspective from an emerging market |
| title_fullStr | Systematic risk and accounting determinants: A new perspective from an emerging market |
| title_full_unstemmed | Systematic risk and accounting determinants: A new perspective from an emerging market |
| title_short | Systematic risk and accounting determinants: A new perspective from an emerging market |
| title_sort | systematic risk and accounting determinants a new perspective from an emerging market |
| topic | HB Economic Theory |
| work_keys_str_mv | AT arunadiancitra systematicriskandaccountingdeterminantsanewperspectivefromanemergingmarket AT warokkaari systematicriskandaccountingdeterminantsanewperspectivefromanemergingmarket |