The Effect of Audit Opinion, Size of Public Accounting Office, Market Reactions, and Profitability on Stock Price

Abstract

The study aims to determine how audit opinion, KAP size, market reaction, profitability, and share price are related. The topic of discussion is the banking company he listed on IDX between 2018 and 2021. The data used are qualitative and quantitative. Quantitative data includes stock price, extraordinary returns, earnings per share, ROA and ROE, while qualitative data includes audit opinion data and the size of his KAP. Survey data is obtained from secondary sources such as www.finance.com and the official IDX website. The sampling method used is known as "targeted sampling". Of the 42 banking firms listed on the IDX, 26 met the sampling criteria. Multiple linear regression analysis was used in this study. Audit opinion, KAP size, ROA-calculated profitability, and market reaction do not significantly affect stock prices, according to the analysis in this study. On the other hand, profitability metrics such as ROE and EPS can have a large impact on stock prices. Furthermore, we found that stock prices are simultaneously influenced by audit opinion, KAP size, market reaction, and profitability.