Article Per Year (5 Year)
p-Index From 2021 - 2026
0
P-Index
This Author published in this journals
All Journal The Indonesian Journal of Accounting Research
Michael G. Tearney
University of Kentucky
Economics, Econometrics & Finance

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
The Effect of Reporting of Exchange Rate Loses on the Stock Market Reaction Grahita Chandrarin; Michael G. Tearney
The Indonesian Journal of Accounting Research Vol 3, No 1 (2000): JRAI January 2000
Publisher : The Indonesian Journal of Accounting Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33312/ijar.34

Abstract

In their seminal paper, Ball and Brown (1968) documented a positive statistical association between earnings surprises and stock returns around an earnings announcement. They concluded that earnings conveyed useful information to the market. However, the question of whether the exchange rate loss, as a component of earnings, affects the stock market has never been answered yet. The purpose of this paper is to examine the effect of reporting of exchange rate losses on the stock market. Empirical model is estimated using OLS and multiple regression is used to analyze the relationship between exchange rate loss and stock price.A sample of 106 companies is divided into group 1 (companies with exchange rate loss) and group 2 (companies without exchange rate loss). All of the data are derived from COMPUSTAT tape for the year 1995-1996, with Standard and Poor 500 category. The results of this study support the hypothesis that there is a correlation between reporting of exchange rate losses and stock price. Thus the stock price responds exchange rate loss reflexted in earnings.
Co-Authors Grahita Chandrarin