Influence of Nonfinancial Information on Abnormal Returns

摘要

Financial information has a weakness in biases as a reference in decision making by investors. Nonfinancial information is needed to supplement financial information to show a company's overall profile. This study aims to analyze the level of nonfinancial information disclosure and influence of prospector, defender, and analyzer strategies to level of nonfinancial information disclosure with control variable industry, age, share owned by public, and size of the company. The research also examines whether the level of nonfinancial information disclosure has a negative influence on abnormal returns with return on equity (ROE) and price-book value (PBV) as the control variables. The research is quantitative, with a sample number of 819 company annual reports from the period between 2014 and 2015, as listed on the Indonesia Stock Exchange. The research explains that prospector strategy has significantly positive influence on the level of nonfinancial information disclosure and defender strategy has significantly negative influence on the level of nonfinancial information disclosure. The industry, age, and share owned by the public have significantly positive influence on level of nonfinancial information disclosure. The research also finds that the level of nonfinancial information disclosure has a significantly positive influence on abnormal returns. While ROE has an insignificantly positive influence on abnormal returns, PBV has a significantly negative influence.