Abstract
This research is attended to analyze market reaction to announcement of Golden Ring Award period 2008-2015. Indonesia Golden Ring Award (IGRA) which was originally called as GRA is a form of award for the telecommunications industry in which the assessment team consist of the journalists who are daily covering the telecommunications industry It used an event study methodology to empirically evidence. The research samples are focused on 6 telecommunication firms listed in Indonesian Stock Exchange with judgement sampling technique. The secondary data consists of daily closing price of shares and composite stock price index with an estimation period during 21 days by using a market adjusted model. Hypotheses are tested by one sample t-test, paired t-test and independent sample t-test. There is significant market reaction to announcement of Golden Ring Award. The second Hypothesis also accepted i.e. there is a significance in different market reaction between the firms getting Golden Ring Award and the firms not getting Golden Ring Award, especially in best operator category. Whereas in best value added category, market didn’t show significant reactions. This result gives implication related to the efficient capital market Hypothesis i.e. semi strong form efficiency are proven.
Highlights
The most popular publication article concerning market efficiency was published by Fama in 1970
In Indonesia, there were some previous researches concerning the announcement of Annual Report Award (Sulistyanto & Prapti, 2003; Yildiz et al, 2017), the announcement of a stock split (Almilia & Kristijadi, 2005), the dividend announcement (Siaputra & Atmadja, 2006; Khoiruddin & Faizati, 2014), the publication of Corporate Governance Perception Index (Almilia & Sifa, 2006) and the announcement of Annual Report Award on Good Corporate Governance (Ardiansari, 2009; Yekini et al, 2016)
Indonesia Golden Ring Award (IGRA) which was originally called as GRA is a form of award for the telecommunications industry in which the assessment team consist of the journalists who are daily covering the telecommunications industry and we believed this factor will give an element of novelty in this research (Table 2)
Summary
The most popular publication article concerning market efficiency was published by Fama in 1970. Efficiency is defined as the speed and completeness of capital markets to absorb relevant information in the stock price (Megginson, 1995). Defines market efficiency based on the correct decision making conducted by the market. Efficiency of weak form (all past information) and the semi-strong (recently published information) occurred because the information is considered to have been distributed and available to the public. This research led to semi-strong form of informationally efficient market involving the market reaction speed to absorb the announced information. In Indonesia, there were some previous researches concerning the announcement of Annual Report Award (Sulistyanto & Prapti, 2003; Yildiz et al, 2017), the announcement of a stock split (Almilia & Kristijadi, 2005), the dividend announcement (Siaputra & Atmadja, 2006; Khoiruddin & Faizati, 2014), the publication of Corporate Governance Perception Index (Almilia & Sifa, 2006) and the announcement of Annual Report Award on Good Corporate Governance (Ardiansari, 2009; Yekini et al, 2016)
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