Image of Gadjah Mada International Journal Of Business; 19 No. 3 September-December 2017


Gadjah Mada International Journal Of Business; 19 No. 3 September-December 2017

Can Backward-looking and Forward-looking Information Debias Prospect Effect in Earnings Announcement?
Jogianto Hartono(1*), Sri Wahyuni(2)

(1) Scopus ID: 55104492500, Faculty of Economics and Business, Gadjah Mada University, Yogyakarta
(2) STIE Mahardhika Surabaya

This study examines the important issue of whether additional pieces of information about the earnings’ characteristics (their quantitative description and predicted earnings) can debias the prospect effect of the earnings’ announcement. The prospect effect bias can be mitigated by the availability of clear information and an integrated disclosure. Additional information that is included with the previous information will make the investors’ beliefs stronger and it will debias any psychological effects.This research confirms the prospect effect’s bias that investors react more negatively when evaluating a company’s performance after a negative earnings information disclosure rather than react positively in evaluating the performance for a positive earnings information disclosure. The results also show that when additional pieces of information, such as a quantitative description and predicted earnings are added, they can mitigate the prospect effect’s bias. Additional information of predicted earnings as forward-looking oriented information has a stronger debiasing effect than that of additional information of a quantitative description as backward-looking oriented information.

backward-looking oriented information; debias; forward-looking oriented information; mitigating bias; predicted earnings; prospect theory; quantitative description

Linking Corporate Risk Disclosure Practices with Firm-Specific Characteristics in Saudi Arabia
Norsiah Ahmad(1*), Omer Saeed Habtoor(2), Nor Raihan Mohamad(3), Mohd Hassan Che Haat(4)
(1) Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin, Terengganu
(2) Department of Administrative Sciences Community College Northern Border University Kingdom of Saudi Arabia
(3) School of Maritime Business and Management Universiti Malaysia Terengganu Kuala Terengganu
(4) School of Maritime Business and Management Universiti Malaysia Terengganu Kuala Terengganu

This study explores Corporate Risk Disclosure practices (CRD) in the annual reports of Saudi (non-financial) listed companies and investigates the relationship between the Saudi firm-specific characteristics and the level of such practices. Using content analysis of a sample of 307 company-year observations over the period of 2008-2011, the results indicate that Saudi Arabia provides a moderate level of CRD among the developed and developing countries. However, the content of this CRD is found to be of a low quality, by including non-financial, qualitative, neutral, or non-time-specific information. In addition, the unbalanced panel regression analysis shows a significant positive influence of firm size and audit firm size on the level of CRD. This indicates that Saudi companies which disclose higher risk-related information are those characterised by their larger size, and are audited by the Big 4 audit firms. This study contributes to the risk literature by providing an initial understanding of the CRD practices and their variations in light of the firm-specific characteristics in emerging markets in general and Arab countries in particular..

Corporate Risk Disclosure, Annual Reports, Firm-specific Characteristics, Saudi Arabia

The Influence of Financial Literacy, Risk Aversion and Expectations on Retirement Planning and Portfolio Allocation in Malaysia
Nurul Shahnaz Mahdzan(1*), Amrul Asraf Mohd-Any(2), Mun-Kit Chan(3)
(1) Department of Finance & Banking, Faculty of Business & Accountancy and Social Security Research Center (SSRC), University of Malaya
(2) Department of Marketing, Faculty of Business and Accountancy, University of Malaya
(3) Global Markets and Investments Mangement, UOB Malaysia

The two objectives of this paper are to examine the effect of financial literacy, risk aversion and expectations on retirement planning; and, to investigate the effect of these antecedents on the retirement portfolio allocation. Data was collected via a self-administered questionnaire from a sample of 270 working individuals in Kuala Lumpur, Malaysia. Logistic and ordered probit regressions were employed to analyse the first and second objective, respectively. The results from the logistic regression indicate that future expectations significantly influence the probability of planning for retirement. Meanwhile, individuals with higher financial literacy and lower risk aversion are more likely to hold risky assets in their retirement portfolios. Subsequently, two-sample t-test and one-way ANOVA tests were conducted to further examine the differences in financial literacy, risk aversion and expectations, across demographic subgroups. The study contributes to the literature by holistically incorporating the behavioural aspects that affect retirement planning and by exploring an uncharted issue of retirement planning—namely, the retirement portfolio allocation.
Keywords Retirement planning, portfolio allocation, financial literacy, risk aversion, expectations

Consumer Attitudes Toward Advertisement and Brand, Based on the Number of Endorsers and Product Involvement: An Experimental Study
(1) Faculty of Economic and Business, Universitas Airlangga, Surabaya-Indonesia
(2) WISANDIKO, Wahyu Rahman, is a staff at The State-Owned Electricity Company (PT PLN Indonesia), Cilacap.

Utilizing endorsers in the advertising industry to promote products is currently on the rise, and employing celebrities as the endorsers is still the marketers’ favorite method. This study aims to analyze the influence of the number of endorsers and the product’s involvement on the consumers’ attitude towards the advertisement and the brand. The research’s approach used a 2x2 factorial experimental design. A total of 120 undergraduate students, who were further divided into 4 groups, were selected as the respondents of this study. The results show the differences in consumer attitudes towards advertisements and the brand, based on the number of endorsers and the product’s involvement. The study also reveals that if there is low involvement with the product, multiple celebrity endorsements will generate a better consumers’ attitude towards it than a single celebrity endorsement. Multiple celebrity endorsements will also generate a better attitude among the consumers towards the brand than a single celebrity endorsement will produce.
Keywords attitude towards advertisement; attitude towards brand; experimental design; multiple celebrity endorsers; product involvement

Comparing Risks and Benefits for Value Enhancement of Online Purchase
Priyanka Sinha(1*), Saumya Singh(2)
(1) Institute of Innovation in Technology and Management, Janakpuri, New Delhi
(2) Indian Institute of Technology (IIT-ISM) Dhanbad

In a developing economy, the acceptability of e–retailing is not very new, but the potential of online marketing in market research and analysis is still largely unexplored. This article is an attempt to understand the psyche of Indian online consumers. As consumers have their own preconceived notions toward this growing purchasing environment, it becomes important for e-retailers to understand the consumers’ perceptions and attitudes toward online purchases. This paper integrates the dimensions of the risks and benefits with the Theory of Planned Behavior (TPB) to understand how consumers adopt their online purchase processes. Four hundred and sixty-eight valid responses were analyzed using structural equation modeling on AMOS 21 to identify the relationship between the different factors and the intention to purchase online. The paper concludes that consumers’ purchase intentions are jointly determined by their attitude towards online purchases and the subjective norm. Furthermore, their attitude is determined by the sub-dimensions of perceived benefits (hedonic benefit, convenience benefit, economic benefit and variety) and the sub-dimensions of perceived risk (product risk and
Keywords consumer perception; online purchase; perceived benefit; perceived risk; TPB


JIFEB180139Perpustakaan Fakultas Ekonomi & BisnisB A C A

Lampiran Berkas

Informasi Detil

Judul Seri
No. Panggil
Penerbit Fakultas Ekonomi dan Bisnis Universitas Gadjah Mada: Yogyakarta.,
Deskripsi Fisik
Tipe Isi
Tipe Media
Tipe Pembawa
September-December 2017
Info Detil Spesifik
Pernyataan Tanggungjawab

Versi lain/terkait

Tidak tersedia versi lain

  • Perpustakaan
  • Universitas
  • Pancasila

Pencarian Spesifik




Kembali ke sebelumnyaXML DetailCite this