The No Order Effect of Accounting Information

Pengarang :	Hartono, Jogiyanto
Sumber :	Jurnal riset akuntansi Indonesia
Penerbit :	Ikatan Akuntan Indonesia
Tahun Terbit Artikel:	2004
Volume :	7
No :	1
Halaman :	94-107
Kata Kunci :	The no-effect hypothesis;Belief adjustment theory;Hogarth and einhorn;Behavioral finance;Behavioral accounting;Behavioral market research;Consistent evidence;Mixed evidence
Abstrak :	This study models the behavior of investor reactions to joint dividend and earnings surprises. Using Hogarth and Einhorns (1992) belief-adjustment theory, it predicts that when dividend and earnings surprises have the same signs (consistent evidence), whether dividend surprises follow or precede earnings surprises, has no effect on stock returns (the no-order effect hypothesis). This study finds evidence for the no-order effect hypotheses for consistent positive evidence. The impact of consistent positive evidence is unaffected by the order of announcements. The finding of this study has a important implication for firms announcement policy. If a firm likes to announce two good news information the order of the announcement does not matter in affecting its stock price. In this case the firm can announce a positive dividend surprise first followed by a positive earnings surprise or a positive earnings surprise first followed by a positive dividend surprises without any effect to the stock price.
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