The Effect of Reporting of Exchange Rate Losses on the Stock Market Reaction
In their seminal paper, Ball and brwon (1968) documented a positive statistical association between earning surprises and stock returns around an earnings announcement. They concluded that earnings conveyed useful information to the market. However, the question of whether the exchange rate loss, as...
| Main Author: | Grahita Chandrarin, Michael G. Tearney |
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| Format: | Jurnal |
| Language: | Bahasa Inggris |
| Published: |
IAIKAP
2000
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| Subjects: | |
| Online Access: |
http://oaipmh-jogjalib.umy.ac.idkatalog.php?opo=lihatDetilKatalog&id=51971 |
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oai:lib.umy.ac.id:51971 |
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oai_dc |
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oai:lib.umy.ac.id:519712021-06-16T13:06:13ZThe Effect of Reporting of Exchange Rate Losses on the Stock Market ReactionGrahita Chandrarin, Michael G. TearneyJurnal Riset Akuntansi Indonesia Exchange rate loss Earnings Earnings per share Stock priceIn their seminal paper, Ball and brwon (1968) documented a positive statistical association between earning surprises and stock returns around an earnings announcement. They concluded that earnings conveyed useful information to the market. However, the question of whether the exchange rate loss, as a component of earnings, affects the stock market has never been answered yet. The purpose of this paper is to examine the effect of reporting of exchange rate losses on the stock market. Emirical model is estimated using OLS and multiple regression is used to analyze the relationship beetwen exchange rate loss and stock price. A sample of 106 companies is divided into group 1 (companies with exchange rate loss) and group 2 (companies without exchange rate loss). All of the data are derived from COMPUSTAT tape for the year 1995-1996, with standard and poor 500 category. The resluts of this study support the hypothesis that there is a correlation between reporting of exchange rate losses and stock price. Thus the stock price responds exchange rate loss reflexted earnings.IAIKAP2000Jurnal1ISBN:1410-6817JRAI MM vol.3 No 1 2000Bahasa Inggrishttp://oaipmh-jogjalib.umy.ac.idkatalog.php?opo=lihatDetilKatalog&id=51971 |
| institution |
Universitas Muhammadiyah Yogyakarta |
| collection |
Perpustakaan Yogyakarta |
| language |
Bahasa Inggris |
| topic |
Jurnal Riset Akuntansi Indonesia Exchange rate loss Earnings Earnings per share Stock price |
| spellingShingle |
Jurnal Riset Akuntansi Indonesia Exchange rate loss Earnings Earnings per share Stock price Grahita Chandrarin, Michael G. Tearney The Effect of Reporting of Exchange Rate Losses on the Stock Market Reaction |
| description |
In their seminal paper, Ball and brwon (1968) documented a positive statistical association between earning surprises and stock returns around an earnings announcement. They concluded that earnings conveyed useful information to the market. However, the question of whether the exchange rate loss, as a component of earnings, affects the stock market has never been answered yet. The purpose of this paper is to examine the effect of reporting of exchange rate losses on the stock market. Emirical model is estimated using OLS and multiple regression is used to analyze the relationship beetwen exchange rate loss and stock price.
A sample of 106 companies is divided into group 1 (companies with exchange rate loss) and group 2 (companies without exchange rate loss). All of the data are derived from COMPUSTAT tape for the year 1995-1996, with standard and poor 500 category. The resluts of this study support the hypothesis that there is a correlation between reporting of exchange rate losses and stock price. Thus the stock price responds exchange rate loss reflexted earnings. |
| format |
Jurnal |
| author |
Grahita Chandrarin, Michael G. Tearney |
| author_sort |
Grahita Chandrarin, Michael G. Tearney |
| title |
The Effect of Reporting of Exchange Rate Losses on the Stock Market Reaction |
| title_short |
The Effect of Reporting of Exchange Rate Losses on the Stock Market Reaction |
| title_full |
The Effect of Reporting of Exchange Rate Losses on the Stock Market Reaction |
| title_fullStr |
The Effect of Reporting of Exchange Rate Losses on the Stock Market Reaction |
| title_full_unstemmed |
The Effect of Reporting of Exchange Rate Losses on the Stock Market Reaction |
| title_sort |
effect of reporting of exchange rate losses on the stock market reaction |
| physical |
1 |
| publisher |
IAIKAP |
| publishDate |
2000 |
| url |
http://oaipmh-jogjalib.umy.ac.idkatalog.php?opo=lihatDetilKatalog&id=51971 |
| isbn |
ISBN:1410-6817 |
| callnumber-raw |
JRAI MM vol.3 No 1 2000 |
| callnumber-search |
JRAI MM vol.3 No 1 2000 |
| _version_ |
1702748648287240192 |
| score |
14.79448 |