Earnings Response Coefficient: A Study of Companies that Publish Social and Environmental Performance
This study aims to describe and test investors' reactions to the announced earnings information. The coefficient of unexpected earnings is called earnings response coefficient. The research method used is event study. The study was conducted on publicly traded companies in Indonesia that publish financial reports and also publish their social and environmental performance in annual reports. The number of companies that were sampled were 27 companies in the 2012-2016 period. The results showed that investors reacted positively to the announced earnings information, but had a very low value.
Keywords - Cummulatie Abnormal Return, Unexpected Earnings, Earnings Response Coefficient