ANALYSIS OF SPECIAL NOTATION TO STOCK PRICE OF LISTED FIRMS ON INDONESIA STOCK EXCHANGE Q1 2019 TO Q2 2022
Fraud remains a common and ongoing problem in Indonesia, according to the Association of Certified Fraud Examiners (ACFE). Corruption, abuse of corporate or government assets, and financial statement fraud are the three most common and costly types of fraud in the country. There have been numerous i...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/71636 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Fraud remains a common and ongoing problem in Indonesia, according to the Association of Certified Fraud Examiners (ACFE). Corruption, abuse of corporate or government assets, and financial statement fraud are the three most common and costly types of fraud in the country. There have been numerous instances of fraud in various industries, particularly in construction, transportation and storage, as well as in communication and banking. In Indonesia, there have been several cases of financial statement fraud, including the case of PT Garuda Indonesia in 2018. Financial statement fraud, which is prevalent in Indonesia, raises questions about the motivations behind this deceitful behavior.
This study aims to analyze the impact of various factors on the financial performance of listed companies on the Indonesia Stock Exchange. The research design is a descriptive study with a quantitative approach, using secondary data collected on a quarterly basis from the first quarter of 2019 to the second quarter of 2022. The study population consists of 257 out of the 810 listed companies on the exchange, representing approximately 32% of the total population.
The factors analyzed in this study include restriction of business activity of listed company and/or its subsidiary by regulator (q), administrative sanction from ojk due to serious offense (v), no sales based on latest financial report (s), negative equity in latest financial report (e), late submission of financial report (l), and bankruptcy filing against the company (b), as well as sales and revenue, assets, liabilities, equity, and profit/loss. The financial ratios studied include return on assets (ROA), return on equity (ROE), debt to equity (DER), and stock price. The findings suggest that special notations given by Indonesia capital market regulators have a negative impact on the financial ratios of listed firms. However, the results are inconclusive due to a limited sample size and time series data. Additionally, the study found that stock returns do not significantly affect firms' financial ratios, which may be due to the presence of market makers. As a result, fundamental ratios cannot be explained by the volatility of stock return variables.
This study only examines quarterly data Q12019 to Q22022. In the Further research is needed to have broader scope datasets e.g. longer data frame and more data of financial ratios.
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