Impact of human resource characteristics of internal accounting system on post-earnings announcement drift: Evidence from Korea
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Author(s)Haeyoung RyuLink to ORCID Index: https://orcid.org/0000-0003-4568-1244
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Soo-Joon ChaeLink to ORCID Index: https://orcid.org/0000-0002-5482-6209
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DOIhttp://dx.doi.org/10.21511/imfi.20(4).2023.30
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Article InfoVolume 20 2023, Issue #4, pp. 375-385
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75 Downloads
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Creative Commons Attribution 4.0 International License
When companies invest in their internal accounting personnel, investors place greater trust in disclosed earnings information and highly regard a company’s information transparency. This results in prompt investment decisions regarding the company. Consequently, earnings information will be immediately reflected in stock prices, thereby reducing stock price drift. The purpose of this study is to examine the impact of investments in establishing and operating internal accounting systems on investors’ responses to the mitigation of stock price drift. The study focused on firms listed on the Korea Exchange from 2011 to 2018 and constructed a regression model using the cumulative abnormal return following earnings disclosure dates for 30, 60, and 120 days as the dependent variable, with the characteristics of internal accounting personnel as independent variables. The analysis reveals that companies with many internal accounting personnel and position experts, such as accountants, within their internal accounting control systems, experience a significantly lower stock price drift. The coefficients of the interaction terms between internal accounting personnel characteristics and standardized unexpected earnings are positive and significant at the 1% level for all cumulative abnormal return values. The findings of the study indicate that as efficiency is secured, stemming from the scale of personnel managing internal accounting control systems and their expertise, market investors’ understanding and trust of accounting information also increase. Investors, as information users, react promptly to the earnings information disclosed by the company, leading to a decrease in stock price drift.
Acknowledgments
This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2021S1A5A8070518).
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JEL Classification (Paper profile tab)J21, M40, M41, M42
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References23
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Tables6
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Figures0
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- Table 1. Descriptive statistics (N = 4,813)
- Table 2. Pearson’s correlation (N = 4,813)
- Table 3. Investment in internal accounting personnel and stock price drift (focusing on the size of internal accounting personnel)
- Table 4. Investment in internal accounting personnel and stock price drift (focusing on whether or not experts are included in the system)
- Table 5. Investment in internal accounting personnel and stock price drift (comparison of companies with high information asymmetry and companies with low information asymmetry)
- Table A1. Variable definitions
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Understanding the preference of individual retail investors on green bond in India: An empirical study
Dhaval Prajapati , Dipen Paul ,
Sushant Malik 
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Dharmesh K. Mishra
doi: http://dx.doi.org/10.21511/imfi.18(1).2021.15
Investment Management and Financial Innovations Volume 18, 2021 Issue #1 pp. 177-189 Views: 2315 Downloads: 987 TO CITE АНОТАЦІЯThe biggest challenge facing countries, including India, is creating and managing an LCR (low carbon resilient) economy, which balances the need for high growth rates and is environmentally sustainable. The green bond market provides investors the means to help change the economy into an LCR economy. The study was undertaken to understand the key drivers and the factors influencing the individual retail investor’s decision to invest in green bonds. A survey instrument was designed and administered through the snowball sampling technique to 125 Indian respondents of various age groups who were eligible to invest in the Indian bond market. SPSS software was used to conduct a descriptive analysis followed by regression and conjoint analyses. The study results suggest that the Environmental, Social, and Governance (ESG) rating and credit rating of the green bond issuers are the key factors that influence an individual’s investment decision. The findings also highlight that incentives such as tax exemptions and awareness of green bonds also affect an investor’s decision. This research stands out as one of the first attempts to understand the Indian retail investors’ perception of a green bond.
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Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia
Zarah Puspitaningtyas
doi: http://dx.doi.org/10.21511/imfi.14(1).2017.05
Investment Management and Financial Innovations Volume 14, 2017 Issue #1 pp. 46-54 Views: 1761 Downloads: 803 TO CITE АНОТАЦІЯEstimation of systematic risk is one of the important aspects of the best investment decisions. Through systematic risk prediction will be known risks to be faced by investors, because systematic risk is a measure of investment risk. In addition to returns, investors always consider the risk of investment, because investors are rational individuals, ie individuals who always consider the trade-off between return and risk. At a certain level of return, investors will tend to choose investments with the lowest risk level. Conversely, at a certain level of risk, investors tend to choose investments with the highest return rate. The purpose of this paper is to analyze the influence of the financial information on the systematic risk of stock manufacturing companies listed on the Indonesia Stock Exchange over a period of five years from January 2011 to December 2015. The financial information is measured in four accounting variables, i.e. financial leverage, liquidity, profitability, and firm size. The results of data analysis using multiple linear regression method to prove that at the 0.05 level only variable sized companies that significantly influence systematic risk. Meanwhile, the variable financial leverage, liquidity, and profitability does not affect the systematic risk. The results showed inconsistencies with the results of several previous studies. This inconsistency may be due to measurement problems variable accounting, the implementation period of the study, and the use of different research samples.
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The mediating effect of investment decisions and financing decisions on the effect of corporate risk and dividend policy against corporate value
Investment Management and Financial Innovations Volume 14, 2017 Issue #2 pp. 27-37 Views: 1538 Downloads: 769 TO CITE АНОТАЦІЯThis study aims to determine the effect of mediation decisions on investment, and financing decisions influence the company’s risk and dividend policy on firm value. The unit of analysis in this research is company property and real estate sectors listed in Indonesia Stock Exchange continuously for 9 years (2001-2008) that have a complete financial report on the study period. This research study using descriptive analysis and inferentsial to prove examine the relationship between the study variables with the five structural models using WarpPLS. This study is basically to analyze the patterns of relationships between variables in order to determine the effect of directly or indirectly, a set of independent variables (exogenous) to the dependent variable (endogenous). The company’s risk and investment decisions are able to increase the value of the company, while the dividend policy and funding decisions are not able to increase the value of the company, the study was conducted at the companies in the sectors of property and real estate, then this study better developed for other sectors that have different characteristics. Originality from this research is the populations in this study were the companies in the sectors of property and real estate with specific criteria Indonesia and the data used in this study were secondary data obtained from the Indonesia Stock Exchange in the form of financial statements.
