Sulistiawan, Dedhy and Hartono, Jogiyanto (2014) CAN TECHNICAL ANALYSIS SIGNALS DETECT PRICE REACTIONS AROUND EARNINGS ANNOUNCEMENT?: EVIDENCE FROM INDONESIA. The International Journal of Business and Finance Research, 8 (1). pp. 113-123. ISSN 1931-0269
Preview |
PDF
IJBFR-V8N1-2014-9_Revisi.pdf Download (629kB) | Preview |
Abstract
This study examines whether technical analysis signals can detect price reactions before and after earnings announcement dates in Indonesian stock market. Earnings announcements produce reactions, both before and after the announcements. Informed investors may use private information before earnings announcements (Christophe, Ferri and Angel, 2004; Porter, 1992). Using technical analysis signals, this study expects that retail investors (uninformed investors) can detect preannouncements reaction. Technical analysis is selected because it is a powerful strategy, especially in developing stock market (Fifield, Power, and Sinclair.2005; Ahmed, Beck, and Goldreyer, 2000), including Indonesia (McKenzie, 2007). This study also examines technical analysis signals after earnings announcements. Using the idea that preannouncements reaction absorb post announcements reactions, this study expect that technical analysis signals difficult to detect price reaction after earnings announcements. Using Indonesian data over 2007-2011, the results show that technical analysis signal before earnings announcements can produce profit, but signals after earnings announcements do not produce same results. Using several different measures of return, the results are statistically robust. Based on those results, this study concludes that technical analysis signal can detect reaction before announcements, but the signals don’t work after earnings announcements. These findings contribute to accounting and technical analysis literatures.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Technical Analysis, Earnings Announcements |
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | Faculty of Business and Economic > Department of Accounting |
| Depositing User: | Dedhy Sulistyawan 31116 |
| Date Deposited: | 24 Feb 2020 07:07 |
| Last Modified: | 24 Mar 2021 16:21 |
| URI: | http://repository.ubaya.ac.id/id/eprint/37411 |
Actions (login required)
 |
View Item |
