Authors:

Mei Rinta

Abstract:

“This study examines the influence between company complexity and client importance on idiosyncratic volatility. The research sample are listed companies in all industries except financial services and banking for period 2014-2018. The dependent variable is idiosyncratic volatility, while the independent variable is company complexity and client importance. Multiple linear regression was used to test. The results showed that there was a significant positive effect of client importance on the dependent variable and a significant negative effect on company complexity on the dependent variable. This means that business line information and auditor-related factors are a signal for investors to react to company shares. Keywords: Complexity Of The Company; Client Importance; Idiosyncratic Volatility.”

Keywords

Complexity Of The Company; Client Importance; Idiosyncratic Volatility.

Downloads:

Download data is not yet available.

References

  • Baldwin, B. A. (1984). Segment earnings disclosure and the ability of security analysts to forecast earnings per share. Accounting review, 376-389. doi:10.2307/246700
  • Chen, Q., Goldstein, I., & Jiang, W. (2006). Price informativeness and investment sensitivity to stock price. The Review of Financial Studies, 20(3), 619-650. doi:10.1093/rfs/hhl024
  • Collins, D. W. (1976). Predicting earnings with sub-entity data: Some further evidence. Journal of Accounting Research, 14(1), 163-177. doi:10.2307/2490463
  • Durnev, A., Li, K., Mørck, R., & Yeung, B. (2004). Capital markets and capital allocation: Implications for economies in transition. Economics of Transition, 12(4), 593-634. doi:10.1111/j.0967-0750.2004.00196.x
  • Ferreira, M. A., & Laux, P. A. (2007). Corporate governance, idiosyncratic risk, and information flow. The Journal of Finance, 62(2), 951-989. doi:10.1111/j.1540-6261.2007.01228.x
  • Foucault, T., Hombert, J., & Roşu, I. (2016). News trading and speed. The Journal of Finance, 71(1), 335-382. doi:10.1111/jofi.12302
  • Haggard, K. S., Martin, X., & Pereira, R. (2008). Does voluntary disclosure improve stock price informativeness? Financial Management, 37(4), 747-768. doi:10.2307/20486678
  • Hutton, A. P., Marcus, A. J., & Tehranian, H. (2009). Opaque financial reports, R2, and crash risk. Journal of Financial Economics, 94(1), 67-86. doi:10.1016/j.jfineco.2008.10.003
  • Jin, L., & Myers, S. C. (2006). R2 around the world: New theory and new tests. Journal of Financial Economics, 79(2), 257-292. doi:10.1016/j.jfineco.2004.11.003
  • Kwan, S. H. (1996). Firm-specific information and the correlation between individual stocks and bonds. Journal of Financial Economics, 40(1), 63-80. doi:10.1016/0304-405x(95)00836-4
  • Lee, D. W., & Liu, M. H. (2011). Does more information in stock price lead to greater or smaller idiosyncratic return volatility? Journal of Banking & Finance, 35(6), 1563-1580. doi:10.1016/j.jbankfin.2010.11.002
  • Lintner, J. (1965). The valuation of risk assets and the selection of risky investment in stock portfolios and capital budgets. The Review of Economics and Statistics, 47(1), 13-37. doi:10.2307/1924119
  • Lobo, G. J., Kwon, S. S., & Ndubizu, G. A. (1998). The impact of SFAS No. 14 segment information on price variability and earnings forecast accuracy. Journal of Business Finance & Accounting, 25(7‐8), 969-985. doi:10.1111/1468-5957.00221
  • Lord, A. T. (1992). Pressure: A methodological consideration for behavioral research in auditing. Auditing, 11(2), 90.
  • Lu, T., & Sapra, H. (2009). Auditor conservatism and investment efficiency. The Accounting Review, 84(6), 1933-1958. doi:10.2308/accr.2009.84.6.1933
  • Malkiel, B. G. (1989). Is the stock market efficient? Science, 243(4896), 1313-1318. doi:10.1126/science.243.4896.1313
  • Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77-91. doi:10.1111/j.1540-6261.1952.tb01525.x
  • Morck, R., Yeung, B., & Yu, W. (2000). The information content of stock markets: why do emerging markets have synchronous stock price movements? Journal of Financial Economics, 58(1-2), 215-260. doi:10.1016/S0304-405x(00)00071-4
  • Roll, R. (1988). R2. The Journal of Finance, 43(3), 541−566. doi:10.1111/j.1540-6261.1988.tb04591.x
  • Ronen, J., & Livnat, J. (1981). Incentives for segment reporting. Journal of Accounting Research, 19(2), 459-481. doi:10.2307/2490875
  • Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19(3), 425-442. doi:10.2307/2977928
  • Shleifer, A. (2000). Inefficient markets: An introduction to behavioural finance: OUP Oxford.
  • Su, L., Zhao, X., & Zhou, G. (2016). Auditor Tenure and Stock Price Idiosyncratic Volatility: The Moderating Role of Industry Specialization. AUDITING: A Journal of Practice & Theory, 35(2), 147-166. doi:10.2308/ajpt-51256
  • Tan, M., & Liu, B. (2016). CEO’s managerial power, board committee memberships and idiosyncratic volatility. International Review of Financial Analysis, 48, 21-30. doi:10.1016/j.irfa.2016.09.003
  • Veldkamp, L. L. (2006). Information markets and the comovement of asset prices. The Review of Economic Studies, 73(3), 823-845. doi:10.1111/j.1467-937x.2006.00397.x
  • Wurgler, J. (2000). Financial markets and the allocation of capital. Journal of Financial Economics, 58(1-2), 187-214. doi:10.1016/S0304-405x(00)00070-2

PDF:

https://jurnal.harianregional.com/akuntansi/full-72717

Published

2021-09-25

How To Cite

RINTA, Mei. Kompleksitas Perusahaan, Client Importance dan Volatilitas Idiosinkratik.E-Jurnal Akuntansi, [S.l.], v. 31, n. 9, p. 2289-2300, sep. 2021. ISSN 2302-8556. Available at: https://jurnal.harianregional.com/akuntansi/id-72717. Date accessed: 28 Aug. 2025. doi:https://doi.org/10.24843/EJA.2021.v31.i09.p11.

Citation Format

ABNT, APA, BibTeX, CBE, EndNote - EndNote format (Macintosh & Windows), MLA, ProCite - RIS format (Macintosh & Windows), RefWorks, Reference Manager - RIS format (Windows only), Turabian

Issue

Vol 31 No 9 (2021)

Section

Articles

Creative Commons License This work is licensed under a Creative Commons Attribution 4.0 International License