Reducing Return Volatility: The Role of Earnings Quality and Corporate Reputation

This research aims to explore the influence of earnings quality and company reputation on stock return volatility in non-cyclical consumer companies listed on the Indonesia Stock Exchange (BEI) for the 2017-2021 period using quantitative methods. The research sample was 175 non-cyclical consumer sub...

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Main Authors: Isnayni Sabila, Rahmawati, Endang Dwi Amperawati, Corina Joseph
Format: Article
Language:English
Published: Muhammadiyah University Press 2023-05-01
Series:Riset Akuntansi dan Keuangan Indonesia
Subjects:
Online Access:https://journals2.ums.ac.id/index.php/reaksi/article/view/4653
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author Isnayni Sabila
Rahmawati
Endang Dwi Amperawati
Corina Joseph
author_facet Isnayni Sabila
Rahmawati
Endang Dwi Amperawati
Corina Joseph
author_sort Isnayni Sabila
collection DOAJ
description This research aims to explore the influence of earnings quality and company reputation on stock return volatility in non-cyclical consumer companies listed on the Indonesia Stock Exchange (BEI) for the 2017-2021 period using quantitative methods. The research sample was 175 non-cyclical consumer sub-sector companies listed on the Indonesia Stock Exchange (BEI) for the 2017-2021 period and using PLS-SEM. The results of this research found that earnings quality has a negative effect on stock return volatility and company reputation has a negative effect on stock return volatility. Results of this research are expected to be useful for investors when investing in the stock market. Apart from that, it is also hoped that it can also be useful for companies so that they can be more careful in carrying out company operational activities so that they can improve their company's reputation in terms of quality, performance, responsibility and attractiveness which can reduce return volatility. This research is limited to consumer non-cyclicals sector in Indonesia and within just 5 years observation and contributes to existing knowledge by empirically testing the relationship between earnings quality and company reputation on stock return volatility. There has been no research in Indonesia that discusses the influence of company reputation on stock return volatility.
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institution Kabale University
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publishDate 2023-05-01
publisher Muhammadiyah University Press
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series Riset Akuntansi dan Keuangan Indonesia
spelling doaj-art-0de96351aea04d6b8b69de1c9eb8bcdc2025-08-20T03:33:35ZengMuhammadiyah University PressRiset Akuntansi dan Keuangan Indonesia2541-61112023-05-0191768610.23917/reaksi.v9i1.46534670Reducing Return Volatility: The Role of Earnings Quality and Corporate ReputationIsnayni Sabila0https://orcid.org/0009-0005-0188-181XRahmawati1Endang Dwi Amperawati2Corina Joseph3Universitas Sebelas MaretUniversitas Sebelas MaretUniversitas Prima GrahaFaculty of Accountancy, Universiti Teknologi MARAThis research aims to explore the influence of earnings quality and company reputation on stock return volatility in non-cyclical consumer companies listed on the Indonesia Stock Exchange (BEI) for the 2017-2021 period using quantitative methods. The research sample was 175 non-cyclical consumer sub-sector companies listed on the Indonesia Stock Exchange (BEI) for the 2017-2021 period and using PLS-SEM. The results of this research found that earnings quality has a negative effect on stock return volatility and company reputation has a negative effect on stock return volatility. Results of this research are expected to be useful for investors when investing in the stock market. Apart from that, it is also hoped that it can also be useful for companies so that they can be more careful in carrying out company operational activities so that they can improve their company's reputation in terms of quality, performance, responsibility and attractiveness which can reduce return volatility. This research is limited to consumer non-cyclicals sector in Indonesia and within just 5 years observation and contributes to existing knowledge by empirically testing the relationship between earnings quality and company reputation on stock return volatility. There has been no research in Indonesia that discusses the influence of company reputation on stock return volatility.https://journals2.ums.ac.id/index.php/reaksi/article/view/4653earning quality, stock return volatility, corporate reputation, public company, sem-pls.
spellingShingle Isnayni Sabila
Rahmawati
Endang Dwi Amperawati
Corina Joseph
Reducing Return Volatility: The Role of Earnings Quality and Corporate Reputation
Riset Akuntansi dan Keuangan Indonesia
earning quality, stock return volatility, corporate reputation, public company, sem-pls.
title Reducing Return Volatility: The Role of Earnings Quality and Corporate Reputation
title_full Reducing Return Volatility: The Role of Earnings Quality and Corporate Reputation
title_fullStr Reducing Return Volatility: The Role of Earnings Quality and Corporate Reputation
title_full_unstemmed Reducing Return Volatility: The Role of Earnings Quality and Corporate Reputation
title_short Reducing Return Volatility: The Role of Earnings Quality and Corporate Reputation
title_sort reducing return volatility the role of earnings quality and corporate reputation
topic earning quality, stock return volatility, corporate reputation, public company, sem-pls.
url https://journals2.ums.ac.id/index.php/reaksi/article/view/4653
work_keys_str_mv AT isnaynisabila reducingreturnvolatilitytheroleofearningsqualityandcorporatereputation
AT rahmawati reducingreturnvolatilitytheroleofearningsqualityandcorporatereputation
AT endangdwiamperawati reducingreturnvolatilitytheroleofearningsqualityandcorporatereputation
AT corinajoseph reducingreturnvolatilitytheroleofearningsqualityandcorporatereputation