PENGUJIAN EMPIRIS INDIKASI FREE-RIDING DALAM REAKSI PASAR TERHADAP PENGUMUMAN LAPORAN KEUANGAN

Abstract

Theoreticallv , financial information released by a firm will convey information about other firms. Also, if one firm releases proprietary ’ information (e.g. good and had news earnings). 11 will influence the market’s expectation of future earnings 10 the Competitor frms. These interactive effects are known as externality and free-riding (Scott 2003) However the empirical investigation with respect to the issue is limited. This study investigates the phenomenon of free-riding in the market reaction to financial statements announcements using quasi-experimental research design and marker model.

The empirical results support the hypothesis that there is an indication of free-riding in the market reaction to financial statements announcements during periods of 2004-2006. The indication of free-riding occurred at day t1, t. 0 and U around event periods of financial statements announcement from treatment samples. The evidence implies there is a failure of market mechanism to restrain externality and free-riding behavior of the market actors.

Keywords: Free-riding, information asymmetry quasi-experimental, information consent. treatment and control sample