How does Financial Reporting Quality Relate to Stock Price Crash Risk? Evidence from Indonesian Listed Companies


This study examines the influence of financial statement transparency, institutional investor stability, audit tenure, and conservatism on stock price crash risk. Using firms listed on the Indonesia stock exchange from 2011 to 2015 as research samples, 748 firm-year observations are available for data analysis and hypotheses tests. Employing multiple regressions analysis, the results show that institutional investor stability, audit tenure, and conservatism have a significant effect on stock price crash risk. However, a positive association between audit tenure and stock price crash risk is not supported in this study. Meanwhile, the transparency of financial statements has no significant effect on stock price crash risk. It may indicate that Indonesian investors tend to overlook the issues of financial report transparency while making equity investment decisions.

 Articles related

Donald Nicolson    

The special issue of this journal is about problematizing assessment. However, in this article I want to start further back and problematize what is meant by competence. I think it is fair to say that when law clinicians speak about assessing competence ... see more

Seun Sylvester Opaleye,Chijioke Esogwa Nwachukwu    

Purpose of the article: To investigate and ascertain the impact of oil rent on happiness in selected African countries.Methodology/methods: This study employed the trend analysis to graphically illustrate some major data. It also employed the fixed effec... see more

Budi Triyono,Chichi Shintia Laksani,Mohammad Zulhamdani,Saut H Siahaan    

Increasing public awareness of the importance of milk consumption and the increasing population of Indonesia make milk as an economic commodity that has a strategic value. The purpose of this study are to analyse the technological capabilities dairy proc... see more

Azmi Hassan    

There exist a huge gap between science and technology discovery and the formulation of public policy mostly due to the poor understanding on how to disseminate the news not only to policy makers but also to the general public. There has been an outright ... see more

Ishtiaq Pasha Mahmood,Hongjin Zhu    

This study examines how firm performance is driven jointly by individual firm-specific capabilities and the characteristics of networks in which firms are embedded. By using business groups in emerging economies as the organizational lens and adopting st... see more