Good Earnings Research Articles

REAKSI INVESTOR TERHADAP PENGUMUMAN LABA DAN UNEXPECTED EARNING PADA SEKTOR INFRASTRUKTUR SAAT MENGHADAPI KOS STICKINESS

The purpose of this study is to determine investors reactions to earnings announcements and unexpected earnings when facing stickiness cost. Sampling in this study used a purposive sampling technique with a total of 10 infrastructure companies listed on the IDX during 2015-2019. The analysis technique in this study uses panel regression analysis using EVIEWS 9. The results of this study indicate that there is no investor reaction to earnings announcements in infrastructure companies when there are low and high stickiness cost. However, when the company has a combined stickiness cost, there is an investor's reaction to the earnings announcement by seeing a positive CAR value which means good earnings quality. Unexpected Earning has no effect on companies that are facing stickiness cost, so the results of this study indicate that there is no investor reaction to unexpected earnings in infrastructure companies that have low, high, and combined stickiness cost. The conclusion of this study is that earnings information becomes less important in predicting future earnings.

Political Bias in the Media's Coverage of Firms' Earnings Announcements

ABSTRACT This study examines whether firms' political activism induces bias in the media coverage of earnings announcements and how such coverage impacts markets. We infer firm political ideology based on employee political contributions and identify firm and manager characteristics associated with distinct ideologies. We find that media outlets negatively slant their coverage of earnings announcements when the political leanings of the outlet are incongruent with the political ideology of the firm. Consistent with slanted coverage affecting market outcomes, we provide evidence that the price reaction to good (bad) earnings news is decreasing (increasing) in the percent of incongruent media outlets covering the earnings announcement. In addition, trading volume and returns volatility are decreasing for good earnings news with the percent of incongruent media outlets. Our results suggest that the prevalent bias across some media outlets in their coverage of political news also affects their coverage of corporate financial events. JEL Classifications: G14; L82; M41.

Мега часопис – нови стандард научних часописа у науци 2.0

Од успостављања концепта мегачасописа (Megajournal), као модела одрживог научног часописа који је искључиво у режиму отвореног приступа, научна јавност је подељена. Са једне стране, они се посматрају као будућност академског издаваштва у коме је омогућена бржа доступност истраживачких резултата, па самим тим и лакша комуникација између истраживача, док су са друге стране, за известан број аутора велика непознаница којој обазриво приступају када бирају крајње исходиште за објављивање својих радова. Поред очигледних критика и јавних оспоравања, мегачасописи су описивани као „сметлиште“ за радове непровереног квалитета, са добром зарадом њихових издавача, што их, по аутоматизму, карактерише као предаторске. У раду је, поред основних карактеристика, дат преглед пет утицајних мегачасописа, укључујући и њихове библиометријске показатеље. Пораст броја објављених радова и импакт фактора у почетним годинама издавања указује да су мегачасописи препознати и прихваћени као модел пословања. Последњих година, при анализи различитих метрика објављених мегачасописа, уочена је извесна стагнација, што указује на хиперпродукцију нових радова у све већем броју наслова.

Analisis Tingkat Kesehatan Bank Mandiri Syariah Dengan Metode Risk Profile, Good Corporate Governace, Earnings and Capital

The purpose of this research is to see the soundness level of Bank Syariah Mandiri with the method of Risk Profile, Good Corporate Governance, Earnings and Capital. The research method uses quantitative methods. Production factors in the RGEC method are the risk profile using credit risk (NPF), liquidity risk (FDR), income (ROA, ROE and BOPO) and capital (CAR). On the results of Good Corporate Governance using data processed and obtained from PT. Bank Syariah Mandiri. The object of this research is PT. Bank Syariah Mandiri. The sampling technique in this study using purposive sampling. This research period is 2013-2017. The data analysis technique used in this research is quantitative descriptive and using the RGEC method (Risk Profile, Good Corporate Governance, Earnings and Car), as for the benchmarks to determine the soundness level of a bank after each examination, namely by determining the results of the study classified into the bank's health rating. The results showed that the health of PT. Bank Syariah Mandiri which uses the Risk Profile approach, Good Corporate Governance, Earnings, and Capital as a whole can be said that Bank Syariah Mandiri is a fairly healthy bank.

Protecting Copyright Owners in Nigeria: A Panacea for Intellectual Development

The paper focused at the protection of copyright owners in Nigeria a panacea for intellectual development. A descriptive survey design was adopted in carrying out the study. The population of the study consist of librarians and law lecturers in the Universities of Port Harcourt and Benin, Nigeria. From the population, a sample size of 112 was randomly selected for the study. Three research objectives guided the study. The study utilized a self-developed questionnaire for data collection. A total of 112 copies of the questionnaire were distributed to librarians, library officers and law lecturers, out of which 108 copies were duly filled and returned, representing 96.4.%. The collected data was analyzed using percentage and mean score. The findings revealed that protection of copyright will protect owners and encourage intellectual works in Nigeria. The result also revealed that the right to intellectual properties is one of the ways to encourage intellectual content owners. The finding revealed that copyright protection provides security for intellectual products. Based on the research findings, it was recommended that owners of intellectual properties deserve good earnings for their intellectual works in order to promote Knowledge proliferation and availability so as to meet the reading needs of the citizens at the various levels. The study also recommended that all cases relating to copyright violation in our courts should be summarily dealt with. The study advocated that the provision on the punishment should be reviewed such that it can deter people from infringing on authors rights.

Relationship between investor sentiment and earnings news in high‐ and low‐sentiment periods

AbstractUsing the Chinese equity market as the testing venue, this study explores how investor sentiment affects the immediate reaction of stock prices to earnings news in high‐ and low‐sentiment periods. Our key finding is that the sentiment‐driven pricing of earnings will differ between the two periods. Specifically, during high‐sentiment (low‐sentiment) periods, the stock price sensitivity to good (bad) earnings news increases (decreases) with investor sentiment, whereas the stock price sensitivity to bad (good) earnings news is unrelated to investor sentiment. Additionally, we find that the effect of sentiment is more pronounced for young, high volatility, growth and distressed stocks. However, contrary to the U.S. evidence, our results show that small stocks are not always more exposed to sentiment. Further analysis of the role of short‐sales constraints in the sensitivity of stock prices to bad earnings news implies that short sales can enhance informational efficiency.

Short‐selling costs and asymmetric price response to economic shocks: A transaction cost explanation to price overshooting

AbstractWe propose a model that combines performance‐based arbitrage, short‐sale constraints, and costly arbitrage. In the model, good earnings surprises trigger short‐covering causing price overshooting for highly shorted stocks. However, price overshooting is on average lower than short‐selling costs. Model predictions are empirically tested using Brazilian short‐selling data. We find empirical support for the short‐covering and overshooting phenomena. Furthermore, there is evidence that the intensity of overshooting is lower than the short‐selling borrowing fee, for both U.S. and Brazilian markets. Theoretical and empirical results suggest that arbitrageurs behave asymmetrically to good and bad earnings news.

Результативность трудового поведения домохозяйств в условиях трансформации отношений собственности и условий занятости

Цитирование: Темницкий А.Л. (2020) Результативность трудового поведения домохозяйств в условиях трансформации отношений собственности и условий занятости // Мир России. Т. 29. № 2. С. 134–155. DOI: 10.17323/1811-038X-2020-29-2-134-155
 В настоящей статье проблема результативности в трудовом поведении наемных работников анализируется с позиций целей и интересов домохозяйства. В этой связи в качестве важнейших результирующих показателей трудового поведения рассматриваются размер оплаты труда, соотнесенный с затратами времени, удовлетворенность оплатой и работой в целом, уверенность в занятости. В качестве информационной базы исследования используются данные Российского мониторинга экономического положения и здоровья населения (RLMS-HSE) за 1994–2017 гг. В статье дается диагностика эффективности трудового поведения городских наемных работников, занятых на формальном рынке труда, с учетом изменений в отношениях собственности и стабильности занятости в организациях. С помощью регрессионного анализа с фиктивными переменными выявлен вклад занятости на частных предприятиях в объяснение размера зарплаты. Показаны признаки потери привлекательности занятости на частных предприятиях, сохранения стабильности условий занятости для абсолютного большинства работников (за исключением ситуации с рабочим временем), вынужденного характера трудовой и профессиональной мобильности, роста уверенности в занятости при различных проявлениях динамичности в поведении, невозможности уделять больше времени семье из-за неготовности поступиться возможностями для заработка.

VOLUNTARY DISCLOSURE, EARNINGS RESPONSE COEFFICIENT AND EARNINGS PERSISTENCE

One of management credibility aspect showed by extent voluntary information disclosed. Management who more credible do more voluntary disclosure. Management use voluntary disclosure as tools to inform good signal happening to all stakeholders, include good earnings quality. This study examine the association of voluntary disclosure to earnings response coefficient (ERC) and earning persistence as earnings quality. Study uses 274 samples of listed firms across different industries in Indonesia, excluding financial industry for the financial period 2015. Ordinary least square (OLS) cross-sectional method is implemented to test the research hypotheses. The results of hypothesis test of the study exhibit a significant negative association between voluntary disclosure to ERC. This study also found no association statistically between voluntary disclosure to earnings persistence. This research conducted for one period, so for future research should to extent year observations. The study also conducted additional testing of disclosures based on disclosure criteria. This test was conducted to determine the type of voluntary disclosure that has a significant influence on the dependent variable of the study, ERC and earnings persistence.Keywords: Earnings Responses Coefficient, Voluntary Disclosure, Earnings Persistence

Comparison of Financial Performance Buku III Indonesian Banks Using Risk-Based Bank Rating (RBBR) Method: Case Study of PT. Pan Indonesia Bank, Tbk (Panin) and PT. Bank Mega, Tbk (Mega)

Indonesia has experienced economic crisis in 1997/1998 and 2008, these events motivate the government to have a strong assessment to evaluate the financial health of the company. Related to the banks industry, government of Indonesia through Financial Service Authority or Otoritas Jasa Keuangan (OJK) issued the Circular Letter of OJK No. 14/SEOJK.03/2017 about Risk-Based Bank Rating (RBBR) approach that include the evaluation of risk profile, good corporate governance, earnings, and capital. The purpose of this study is to assess the financial health of the two open recorded non-expressed claimed BUKU III banks in Indonesia, which are Bank PT. Pan Indonesia Bank, Tbk (Panin) and PT. Bank Mega, Tbk (Mega) from year of 2014 to 2018. The methodology used is RBBR approach concerning the Rating of Health of Commercial Banks. The data were collected from the yearly report of the banks, fiscal reports, diaries, and articles of PT. Bank Mega and PT. Bank Panin. During the five year trend, the result of this study reveals that the two banks have performed well. However, Bank Mega has performed better in terms of Loan to Deposit Ratio (LDR) compared to Bank Panin. This study has added the knowledge in the financial literature. It also brings benefit for managers to help them make a better decision to address their company’s problem.

The momentum effect in the Tunisian stock market: Risk hypothesis vs. underreaction hypothesis

The purpose of this paper is to examine two controversial explanations for the momentum in the Tunisian stock market: the risk hypothesis and the underreaction hypothesis. To address the risk issue, the five-factor model of Fama and French (2015) was used to estimate the momentum profits. We found a strong evidence of risk-adjusted momentum profits indicating that the risk cannot explain the momentum effect. To test the underreaction hypothesis, an event study was performed to track the market reaction to the information content of earnings before, on and after earnings announcement. We found that good earnings news are followed by positive abnormal returns; while bad earnings news are followed by negative abnormal returns over 12 months after the announcement date. Consistent with the underreaction hypothesis, these findings indicate that the market slowly adjusts in the same direction to the unexpected earnings. To control for this effect, we extended the five-factor model to include a factor based on unexpected earnings. We found that the momentum profits are captured by a zero-investment portfolio that is short on the portfolio with the lowest unexpected earnings and long on the portfolio with the highest unexpected earnings.

Elimination of Tool Failure in Edge Cutting Machine using Quality Tools and Techniques

Increasing cost of consumable materials has put an enormous pressure on the estimating as well as the costeffectiveness of an organization. Therefore, without any conciliation on quality, the unpredictable cost has to be reduced. This demands novel intellectual and creativity for constant improvement in manufacture, resulting in good earnings. Rim is an important component for any wheel and manufacturing of rim involves various stages with each stage involving different machines. The basic idea of the research is to identify the causes of tool failure in edge cutting machine and to find solution for the identified causes. Edge cutting machine is specially used in earthmovers unit for the production of rims for earthmover wheels. The existing tool was replaced with the new tool made of shearing resistant material. The new tool is designed and analysed for production purpose and cost variation are successfully compared.

Banking Health Assessment of Commercial Banks in Indonesia Using RGEC Methods: A Comparative Study


 
 
 
 The study aims to analyze and compare the banking health assessment of commercial banks in Indonesia using RGEC methods. RGEC methods are included Risk Proile, Good Corporate Governance, Earnings, and Capital (RGEC). This study used descriptive with quantitative approach. The variables in this study includes Risk Proile using ratio of Non-Performing Loans (NPL) and Loan to Deposit Ratio (LDR), Good Corporate Governance (GCG) using Composite Rating GCG, Earnings using ratios of Return on Assets (ROA), Net Interest Margin (NIM), and Capital using Capital Adequacy Ratio (CAR). The data were collected from audited inancial report of two commercial banks in Indonesia which are PTBank UOB Indonesia and PTBank KEB Hana Indonesia for the period 2013 to 2017. The result showed that the inancial health level of PT Bank UOB Indonesia and PT Bank KEB Hana Indonesia was quite healthy. It indicates that the ability of the corporate's performance results had achieved very well.
 
 
 

An Incomplete Audit at the Earnings Announcement: Implications for Financial Reporting Quality and the Market's Response to Earnings

ABSTRACTThere has been a substantial increase, since 2004, in the number of firms that announce annual earnings before audit completion as opposed to after audit completion. In this study, we argue that earnings announced before audit completion are associated with lower financial reporting quality and investor perceptions that earnings are more likely to be overstated. Consistent with this expectation, we document that the market places more (less) weight on good (bad) earnings news for earnings announced after audit completion relative to earnings announced before audit completion. We continue to find this differential market response when we expand the returns window to include the 10‐K filing date, suggesting that the differential response is not driven by investors' temporary concerns about earnings revisions between the earnings announcement and the 10‐K filing date or by differential GAAP disclosures in the earnings announcement, as suggested in prior research. Finally, as a direct test of financial reporting quality, we show that earnings announced with a completed audit are less likely to be restated in the future, are less likely to meet or beat expectations, and are associated with fewer income‐increasing discretionary accruals than those announced with an incomplete audit.

The Scale, Factors and Mobility and Stability Motives in The Labour Market

The Object of the Study. Employed populationThe Subject of the Study. Mobility and stability in the labour marketThe Purpose of the Study. Analysing the processes of mobility and stability in the labour market in the aspect of effective regrouping of labour resourcesThe Main Provisions of the Article. In the conditions of structural transformations of the economy, the role of interfirm mobility of workers should increase. It is important that this process contributes to the improvement of the quality characteristics of the labour force. In many ways, this is achieved by increasing the reserves of human capital, but a change of work can counter this. It is known that stable employment with long-term labour relations are preferable for the growth of workers' qualifications. Moreover, interfirm mobility sometimes leads to a decrease in the quality of human potential. The analysis of these processes, their dominant trends, factors and motives was based on our theoretical and applied studies of the segmented (dual) labour market. In accordance with them, the labour market is divided into segments with high-quality and mass labour resources. The information base was provided by official statistics and an expert survey of workers, conducted at the Institute for Socioeconomic Studies of the Russian Academy of Sciences using the qualitative interview method. As a result of the analysis, it was revealed that mass resources are more mobile in the labour market, which is rarely accompanied by an improvement in their quality. This mainly applies to workers with low qualifications. They quit due to unattractive work and poor work-related security. For skilled workers, preference is more preferable than stable employment, but with good earnings and working conditions, for the sake of improvement of which they are ready to change jobs, but without changing their profession. At the same time, the processes of high mobility of specialists, whose professions allow working in various fields of activity (information technologies etc), have also been opened. It has been established that so far the increase in the level of employment of high-quality labour resources is limited by low rates of structural transformations of the economy.

Pengaruh Good Corporate Governance Terhadap Kualitas Laba Pada Perusahaan Real Estate dan Property

This study aims to analyze the effect of corporate governance on the quality of study earnings in real estate and property companies listed on the Indonesia Stock Exchange (IDX) in 2012-2017. In this study, Good Corporate Governance is analyzed as a factor that can encourage companies to have good earnings quality. This study belongs to the type of descriptive research verification of causality. The population in this study are real estate and property companies listed on the Indonesia Stock Exchange (IDX) in 2012-2017 using the purposive sampling method. The type of data collected and used in this study is secondary data with a method of collecting data through documentation and literature studies. The data analysis method used is simple linear regression analysis that has met the testing of classical assumptions. The results of this study indicate that Good Corporate Governance has no effect on earnings quality because the application of Good Corporate Governance (GCG) in companies in Indonesia has not really been used as a tool to minimize information asymmetry between owners and management, but solely to comply with regulations and conditions that apply only.Key words: Good Coporate Governance, kualitas laba.

Pengaruh Good Corporate Governance dan Ukuran Perusahaan Pada Manajemen Laba

The purpose of this study was to determine the effect of good corporate governance and company size on earnings management in coal mining companies listed on the Indonesia Stock Exchange in 2013 - 2017. The research approach used in this study was a quantitative approach using secondary data. The sampling technique used is non probability sampling with a purposive sampling method. The number of samples used in this study were 40 samples. The analysis technique used is multiple linear regression. Based on the results of the study show that good corporate governance and company size influence earnings management. This research is expected to be able to provide additional empirical studies for further research that examines earnings management and makes a positive contribution to investors and companies in understanding the importance of implementing good corporate governance to reduce earnings management actions.
 Keywords: Good corporate governance, company size, earnings management.

Societal Trust and Corporate Investment Efficiency

The prior literature establishes that trust affects investment, however, whether it leads to investment efficiency is unaddressed. This study seeks to investigate the relationship between societal trust and corporate investment efficiency. The study documents a positive association between societal trust and corporate investment efficiency. Using data from 30 diverse countries, we present evidence that societal trust is positively related to firm’s overinvestment but has a negative relationship with firm’s under-investment. Further analysis of this study also posits a stronger relationship between trust and firm's investment efficiency for financing constraint firms. We interpret these findings as supportive evidence that higher trust is related to favorable outcomes, some being good earnings quality and greater reliability of earnings news. Furthermore, this study from the perspective of social capital literature provides an alternative explanation to investors investment decisions regarding the economic consequences of enhanced trust.

Is Improving Access to University Enough? Socio‐Economic Gaps in the Earnings of English Graduates

AbstractMuch research and policy attention has been on socio‐economic gaps in participation at university, but less attention has been paid to socio‐economic gaps in graduates’ earnings. This paper addresses this shortfall using tax and student loan administrative data to investigate the variation in earnings of English graduates by socio‐economic background. We find that graduates from higher income families (with median income of around 77,000) have average earnings which are 20% higher than those from lower income families (with median income of around £26,000). Once we condition on institution and subject choices, this premium roughly halves, to around 10%. The premium grows with age and is larger for men, in particular for men at the most selective universities. We estimate the extent to which different institutions and subjects appear to deliver good earnings for relatively less well off students, highlighting the strong performance of medicine, economics, law, business, engineering, technology and computer science, as well as the prominent London‐based universities.

Firm-specific investor sentiment and the stock market response to earnings news

We link accounting-based anomalies to investors’ behavioral biases and find that investors respond to earnings news differently according to sentiment. The stock price reaction to positive earnings surprises is significantly greater for firms with high sentiment, suggesting that investors are more optimistic about the expected cash flows included in good earnings news for firms with high sentiment. Investors only partially accept information in good earnings news that differs from their expectations for firms with low sentiment. For negative earnings surprises, stock price sensitivity is slightly higher for firms with low sentiment, but this effect is insignificant because investors only partially update their information from bad earnings news regardless of the sentiment level. We observe no difference in the information content of earnings news according to sentiment level that could induce the different stock price sensitivity patterns.