Investor Response to Financial Performance and Business Prospect
Evidence from Consumer Goods Sector
- DOI
- 10.2991/aebmr.k.211124.044How to use a DOI?
- Keywords
- Business prospect; Consumer goods sector; Financial performance; Investor response; Merger & acquisition
- Abstract
Financial performance is an essential instrument in decision making. However, over time, many researchers stated that the relevance of financial statement information had decreased so that investors did not respond positively to financial performance. Furthermore, investors view corporate action simply because it adds value and growth to the company. This study was conducted to compare investor responses to M&A and financial performance. We tested the model on a sample of 213 companies from the consumer goods sector in ASEAN with CAR as the dependent variable, dummy, EPS, ROA, and CFO / TA as independent variables, and firm size and firm leverage as control variables. We found that investors responded negatively to M&A, while financial performance as measured by ROA and CFO / TA reacted positively. From these findings, we propose that company managers can consider a strategy of conducting M&A to attract investors and add value to the company.
- Copyright
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Juniarti Juniarti AU - Ferren Chandra AU - Olivia Shannen Tandyono PY - 2021 DA - 2021/11/25 TI - Investor Response to Financial Performance and Business Prospect BT - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021) PB - Atlantis Press SP - 301 EP - 317 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.211124.044 DO - 10.2991/aebmr.k.211124.044 ID - Juniarti2021 ER -