The Effect of Gains/Losses from Changes in Fair Value of Financial Instruments on the Value Relevance and Risk for Investor

Rini Indriani, Eddy Suranta, Lara Carina, Asikum Wirataadmaja

2019

Abstract

The aims this study is to determine the effect of disclosure gains / losess changes in fair value of financial instruments on stock returns and beta shares of the company. Based on the sampling method used in this research is purposive sampling obtained a sample of 54 financial companies listed on the Indonesia Stock Exchange. Furthermore, the data were analyzed using panel data regression using a fixed effect and multiple linear regression. The results of the research can prove that the information gains / losses changes in fair value of financial instrument has significant positive effect on return, and a significant negative effect on the company's stock beta. This result shows that the information gains / losses changes in fair value of financial instrument has value relevance and can reduce the risk for investors. Based on these results, indicated that gains / losses changes in fair value of financial instruments is information that can change the decisions of investors.

Paper Citation

in Harvard Style

Indriani R., Suranta E., Carina L. and Wirataadmaja A. (2019). The Effect of Gains/Losses from Changes in Fair Value of Financial Instruments on the Value Relevance and Risk for Investor. In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA, ISBN 978-989-758-582-1, pages 97-104. DOI: 10.5220/0009588700002900

in Bibtex Style

@conference{miicema19,
author={Rini Indriani and Eddy Suranta and Lara Carina and Asikum Wirataadmaja},
title={The Effect of Gains/Losses from Changes in Fair Value of Financial Instruments on the Value Relevance and Risk for Investor},
booktitle={Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,},
year={2019},
pages={97-104},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009588700002900},
isbn={978-989-758-582-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,
TI - The Effect of Gains/Losses from Changes in Fair Value of Financial Instruments on the Value Relevance and Risk for Investor
SN - 978-989-758-582-1
AU - Indriani R.
AU - Suranta E.
AU - Carina L.
AU - Wirataadmaja A.
PY - 2019
SP - 97
EP - 104
DO - 10.5220/0009588700002900