Jogiyanto Hartono
Gadjah Mada University Yogyakarta

Published : 33 Documents
Articles

Found 33 Documents
Search

THE RECENCY EFFECT OF ACCOUNTING INFORMATION

Gadjah Mada International Journal of Business Vol 6, No 1 (2004): January-April
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

This study tests the joint effects of dividend and earnings information. A study of joint effects is justified for the following reasons. First, dividends and earnings are considered two of the most important signaling devices (Aharony and Swary 1980) that investors use in evaluating stock prices. Second, dividends and earnings are garbled information (Ohlson 1989). Dividends and earnings may contain corroborating or disconfirming news. Third, investors may be have with memory, revising beliefs in complex ways in evaluating a sequence of information. Prior dividend studies that controlling for earnings announcement effects do not address these possibilities. Using Hogarth and Einhorns (1992) belief-adjustment theory, this study models the behavior of investor reactions to joint dividend and earnings surprises. The theory predicts that order and timing of dividend and earnings surprises have different effects on stock returns. When dividend and earnings surprises have opposite signs (mixedevidence), the theory predicts that later surprises have a larger impact on stock returns than do earlier surprises (the recency effect hypothesis). The evidence for the recency  effect hypotheses is relatively strong. In three out of four cases of mixed evidence (positive earnings, negative earnings and positive dividend surprises), the recency effect hypotheses are supported.

Examining the Effects of Presentation Patterns, Orders, and Information Types in Investment Decision Making

Gadjah Mada International Journal of Business Vol 15, No 2 (2013): May-August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

This study aims to investigate the existence of Belief Model (BAM) developed by Hogarth and Einhorn (1992) in investment decision making. Particulary, this study examined: the effects of presentation patterns, presentation orders, and information types (accounting or non-accounting information) in investment decision making. This study used laboratory experiment to test the hypotheses. Hypotheses were tested using t-test. This study showed a “judgement bias” that is a recency which the effect of presentation pattern is consecutive is higher than unconsecutively.                  

The Market Quality to Technical Analysis Performance: Intercountry Analysis

Gadjah Mada International Journal of Business Vol 16, No 3 (2014): September-December
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

The main objective of this research is to discuss the impact of market quality on technical analysis profitability using inter-country analysis. Market quality is proxied by market capitalization. Technical analysis performance (profitability) is calculated using technical analysis return for MA5 indicator and short transaction strategy. This study uses the OSIRIS and Yahoo Finance databases. Using 21 countries with 50 companies for each country, this study finds that market quality affects technical analysis performance. Robustness tests are conducted for longer moving average indicators that are MA10 and MA15. To make sure that the results are not sensitive toward the strategy used, other robustness tests are conducted by using short and long-short transaction strategies. All robustness tests confirm the findings.     

Detecting the Existence of Herding Behavior in Intraday Data: Evidence from the Indonesia Stock Exchange

Gadjah Mada International Journal of Business Vol 15, No 1 (2013): January - April
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

This study attempts to investigate the issue of the existence of institutional herding in the stock market. The existence is detected in the intraday trade data from the Indonesia Stock Exchange (IDX) during up, down, and stable market condition over the period 2003-2005. By using the model of Lakonishok et al. (1992), it is found that the intensity of the existence of institutional herding at the IDX, on average, is 8.4 percent. Institutional investors do not seem to lead their transactions ina certain characteristic of stock. Most of them follow positive-feedback trading strategy while others follow negative-feedback trading strategy. This study also found that the existence of herd behavior at the IDX did not destabilize the market price in a subsequent period.

A MECHANISM AND DETERMINANTS OF AN AGENCY-COST EXPLANATION FOR DIVIDEND PAYMENTS

Gadjah Mada International Journal of Business Vol 5, No 2 (2003): May-August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

This study explains the dividend puzzle using the agency-cost frame work suggested by Easterbrook (1984). Easterbrook hypothesized that shareholders in firms, who increase cash dividend payout and ‘simultaneously raise debts to finance their investments are likely to be wealthier than those in firms who only increase their cash dividend payout. He provided the mechanism that shareholders use the dividend payments to force managers to go to the capital markets to raise funds. Therefore, he argued that dividend policy influences the financing policy. A system of simultaneous equation using three-stage generalized least square method is used to test the hypotheses. Among the variables to proxy the investment opportunity set, market-to-book ratio, market-to-book assets ratio and accounting earnings-per-share-to-price ratio are the best proxies. Attempt is made to obtain better proxies for the investment opportunity set using an instrument variable method. The system is robust to alternate investment opportunity variables as well as to the instrumental variables. The findings are as follows. For the firms that increase cash dividend payout and raise debt simultaneously, (a) dividend policy is not a shareholders mechanism, but a managers accounting-based decision with accounting earnings and retained earnings as the major determinants, (b) dividend policy influences financing policy, but not the other way around, (c) increasing dividend payment decreases shareholders wealth, but increasing debt subsequently increases shareholders wealth with a net effect positive to shareholders wealth, and (d) dividend policy is independent from investment policy.

Accounting Fundamentals and the Variation of Stock Price: Factoring in the Investment Scalability

Gadjah Mada International Journal of Business Vol 12, No 2 (2010): May - August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

This study develops a new return model with respect to accounting fundamentals. The new return model is based on Chen and Zhang (2007). This study takes into account theinvestment scalability information. Specifically, this study splitsthe scale of firm’s operations into short-run and long-runinvestment scalabilities. We document that five accounting fun-damentals explain the variation of annual stock return. Thefactors, comprised book value, earnings yield, short-run andlong-run investment scalabilities, and growth opportunities, co associate positively with stock price. The remaining factor,which is the pure interest rate, is negatively related to annualstock return. This study finds that inducing short-run and long-run investment scalabilities into the model could improve the degree of association. In other words, they have value rel-evance. Finally, this study suggests that basic trading strategieswill improve if investors revert to the accounting fundamentals.Keywords: accounting fundamentals; book value; earnings yield; growth opportuni­ties; short­run and long­run investment scalabilities; trading strategy;value relevance

Exploratory Study on Alignment Between IT and Business Strategies

Gadjah Mada International Journal of Business Vol 14, No 2 (2012): May - August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

Interaction and linkages between business and information technology (IT) strategies remain a primary concern among executives. This study aims to gain an in depth understanding of how companies achieve alignment and the policy framework that underlies the efforts, particularly those that are associated with the most dominant factor that contributes to the establishment of strategic alignment, namely IT infrastructure flexibility. For that purpose, the study explored four companies engaged in the field of oil, electricity, and communication by adopting interpretive case study. Data were gathered using triangulation methods via field interviews, artifacts, document analysis, as well as direct observation. The textual data were elaborated by an intentional analysis in order to guide the study in exploring the phenomenon. The study identified elements that reflect IT infrastructure flexibilities namely connectivity, compatibility, modularity, IT staff knowledge and skills, and integration. Those elements cover both technical and behavioral dimensions of a company’s components that need to be included in the consideration during the planning phase

Strategic Alignment Impacts on Organizational Performance in Indonesian Banking IndustrY

Gadjah Mada International Journal of Business Vol 9, No 2 (2007): May - August
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

Strategic alignment has attracted the attention of researchers and practitioners for the last 15 years. This paper reports findings from a survey on the impacts of strategic alignment on organizational performance in the Indonesian banking industry. The survey was conducted through internet-based and postal questionnaires sent to selected companies.Structural Equation Modeling (SEM) is utilized to apprehend the strategic alignment concept as an emergent variable derived from the co-variation of  level of business strategy and level of IS/IT strategy. Hence, we explore the role of this emergent concept as a determinant of organizational performance. Analysis of the data reveals a generally positive impact towards the organizational performance.

The Recency Effect of Accounting Information

Gadjah Mada International Journal of Business Vol 6, No 1 (2004): January-April
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

See in the full tex

NON-FINANCIAL FACTORS IN THE GOING-CONCERN OPINION

Journal of Indonesian Economy and Business Vol 25, No 3 (2010): September
Publisher : Journal of Indonesian Economy and Business

Show Abstract | Original Source | Check in Google Scholar

Abstract

This paper describes the influence of tenure, auditor reputation, disclosure, and the size of the client company on a going concern opinion. Audit opinion issued by the auditoris expected by users of the quality of information, because as the basis for investment decisions. Going-concern audit opinion is an opinion issued by auditors to ascertainwhether the company can maintain its existence. Studies on the factors that affect the audit opinion have been carried out both overseas and in Indonesia. The factors used are vary and the results are not conclusive. This study uses 89 sample firms listed on the Indonesia Stock Exchange in 2003-2008. Logit regression analysis shows that the tenure, auditor reputation, disclosure has a significant on going-concern opinion while the client company size has no effect on going-concern opinion.Keywords: tenure, auditor reputation, disclosure, size, going-concern opinion