On Association of corporate Governance and Earnings Quality With Firms stock Return: A Study of Indonesian Stock Exchange in 2009
NANDIWARDHANA, PRAJNA (Pembimbing: Eko Suwardi, Drs., M.Sc., Ph.D.), Eko Suwardi, Drs., M.Sc., Ph.D.
Global financial crisis started in 2006 and it systemically affected nation worldwide. IHSG (Indonesian Stock Exchange Composite Index) decreased since the early of 2008. The positive growth started on December when IHSGs position reached 1,355.4. On March 2009, IHSG was in a upward trend and its position was 1,406.
Corporate governance and earnings quality positively associate with stock return (Sivaramakrishnan & Yu, 2008). The significant increase of Indonesian firms stock return in 2009 should also positively associate with the increase of the earnings quality and good corporate governance.
Sample of this study is taken from 83 firms which were listed in Indonesian Stock Exchange in 2009.
The findings reveal that earnings quality positively associate with the stock return. On the other hand, corporate governance failed to associate with the increase of stock return.
Kata Kunci : Corporate Governance, Earnings Quality, Stock Return, Indonesian Stock Exchange,
