ANALYSIS THE INFLUENCE OF FINANCIAL PERFORMANCE AND ENVIRONMENTAL

PERFORMANCE DISCLOSURE TO MARKET REACTION AND FIRM SIZE AS MODERATING VARIABLE

(Case Study in Companies Listed on Indonesian Stock Exchange during 2009-2013)

Eka Agustianingsih

SMAK-04

Research Background

NEED

ACCOUNTING INFORMATION

PHENOMENON OCCURS

Dunlap and Scarce (1991)

Ikhsan (2005)

Kholis (2002)

SAFE INVESTMENT(Yuliusman, 2008)

Management with a great track record and a positive plan of healthy,

At least have earnings growth per share on average and revenue performance of a prospective,

Strong evidence of the existence of a positive attitude towards the management of environmental issues

Problem Formulation

Is disclosure of financial performance affects the market reaction?

How the firm size as a moderating variable affecting the relationship disclosure of financial

performance and the market reaction?

Is disclosure of environmental performance affects the market reaction?

How the firm size as a moderating variable affecting the relationship disclosure of

environmental performance and market reaction?

Research Objectives

To determine whether the disclosure of financial performance affects the market reaction.

To find out how the role of firm size in the relationship between the disclosure of financial performance and market reaction.

To determine whether the disclosure of environmental performance affects the market reaction.

To find out how the role of firm size in the relationship between the disclosure of environmental performance and market reaction.

LITERATURE REVIEW AND FRAMEWORK

Hypothesis

ROI

ROE

EPS

EMA

PROPER

ED

MARKET REACTION

FIRM SIZE

Research Methodology

Unit of Analysis :

All companies Listed in IDX and participated in PROPER

during 2009-2013.

Variable UsedVariable Proxy Measurement

ROI ROI 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥

𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

ROE ROE 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥

𝐸𝑞𝑢𝑖𝑡𝑦

EPS EPS 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥

𝐽𝑢𝑚𝑙𝑎ℎ 𝑠𝑎ℎ𝑎𝑚 𝑏𝑒𝑟𝑒𝑑𝑎𝑟

EMA implementation ISO 14001 ownership Dummy variable;Yes : 1No : 0

Environmental disclosure Disclosure scoring index 𝑇ℎ𝑒 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑖𝑡𝑒𝑚 𝑑𝑖𝑠𝑐𝑙𝑜𝑠𝑢𝑟𝑒𝑑

𝑇𝑜𝑡𝑎𝑙 𝑎𝑙𝑙 𝑖𝑡𝑒𝑚 𝑑𝑖𝑠𝑐𝑙𝑜𝑠𝑢𝑟𝑒

PROPER rating PROPER ratingRating point:

Gold : 5

Green : 4

Blue : 3

Red : 2

Firm size Total asset Log(Total Asset)

Market reaction Abnormal return ARi,t = Ri,t – E[Ri,t]

The Analytical Method

Desciptive Analysis

Classical Assumption Test

Moderated Regression Analysis