The Influence of the Application of Good Corporate Governance and Company's Financial Statement toward Investor's Reaction (An Empirical Study of Manufacturing Companies in Pharmaceutical Sector Listed on Indonesia Stock Exchange, year 2010-2014)

Abstract

Every company has a goal to be achieved in order to meet the interests of the stakeholders. Investor as stiffeners interest will of course be careful in investing. The financial statements become a benchmark investor in making decisions invest. Companies that implement good corporate governance well, will present good information anyway, therefore it will increase investor confidence on the report presented in the financial statements. Apart from that, the company's financial performance can also attract investors’ interest. The better the performance, the better reaction of investors the company will get. The aim of this study is to determine the effect of good corporate governance and investor reaction to the company's financial performance. This study uses a quantitative method with descriptive approach through data collecting technique and documentation. The testing instrument used to analyze the data is multiple linear regression SPSS (Statistical Product and Service Solutions. The results of the study show that implementation of good corporate governance and financial performance jointly influences the reaction of investors of manufacturing companies in pharmaceutical sector.