THE EFFECT OF COMPANY’S MANAGEMENT DISCUSSION AND ANALYSIS DISCLOSURE TO SHAREHOLDERS REACTION

Natasya Imanuella Soriton (Faculty of Economics and Business, Klabat University)
Rinny Rantung (Faculty of Economics and Business, Klabat University)

Klabat Accounting Review
Vol 2 No 2 (2021): Klabat Accounting Review

This research aims to describe how Indonesia capital market would react upon non-financial information Management Discusion and Analysis disclosure for 85 manufacturing company in 2018. The result of the research showed that (1) non-financial information for manufacturing companies such as Management Discussion and Analysis as part of annual report has no significant impact towards investor in Indonesia. (2) MD&A purpose for disclosing information in manufacturing company for Indonesia capital market is not functioning. (3) MD&A disclosure for manufacturing companies are not fully prepared by management. Keywords: Management discussion and analysis, market reaction, trading volume activity