Melola Discovery

← Melola Discovery

Jurnal SINTA 1

THE RECENCY EFFECT OF ACCOUNTING INFORMATION

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 6 No. 1 (2012) · pp. 85–116

DOI
10.22146/gamaijb.5536
ISSN
2338-7238, 1411-1128
Published
2012-01-12
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng

Abstract

This study tests the joint effects of dividend and earnings information. A study of joint effects is justified for the following reasons. First, dividends and earnings are considered two of the most important signaling devices (Aharony and Swary 1980) that investors use in evaluating stock prices. Second, dividends and earnings are 'garbled' information (Ohlson 1989). Dividends and earnings may contain corroborating or disconfirming news. Third, investors may be have with memory, revising beliefs in complex ways in evaluating a sequence of information. Prior dividend studies that controlling for earnings announcement effects do not address these possibilities. Using Hogarth and Einhorn's (1992) belief-adjustment theory, this study models the behavior of investor reactions to joint dividend and earnings surprises. The theory predicts that order and timing of dividend and earnings surprises have different effects on stock returns. When dividend and earnings surprises have opposite signs (mixedevidence), the theory predicts that later surprises have a larger impact on stock returns than do earlier surprises (the recency effect hypothesis). The evidence for the recency effect hypotheses is relatively strong. In three out of four cases of mixed evidence (positive earnings, negative earnings and positive dividend surprises), the recency effect hypotheses are supported.

Keywords

Collaboration network of the authors

20 authors · 37 co-authorship links · 11 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Gadjah Mada
  • Universitas Teknologi Yogyakarta
  • Atma Jaya University Yogyakarta
  • University of Bradford
  • University of Surabaya
  • Perbanas Institute
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Eduardus TandelilinUniversitas Gadjah Mada1
Mamduh Mahmadah HanafiUniversitas Gadjah Mada1
Setiyono SetiyonoUniversitas Gadjah Mada1
Dewi RatnaningsihAtma Jaya University Yogyakarta1
Achmad DjunaediUniversitas Gadjah Mada1
Hargo UtomoUniversitas Gadjah Mada1
Wahyuni ReksoatmodjoUniversitas Gadjah Mada1
Slamet SugiriUniversitas Gadjah Mada1
Sumiyana SumiyanaUniversitas Gadjah Mada1
Zaki BaridwanUniversitas Gadjah Mada1
Nofie ImanUniversity of Bradford1
Dedhy SulistiawanUniversity of Surabaya1
Luciana Spica AlmiliaPerbanas Institute1
Ertambang NahartyoUniversitas Gadjah Mada1
. SupriyadiAffiliation unknown1
Junaidi JunaidiUniversitas Teknologi Yogyakarta1
Setiyono MiharjoUniversitas Gadjah Mada1
Bambang HartadiUniversitas Teknologi Yogyakarta1
Eko SuwardiUniversitas Gadjah Mada1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 28 Okt 2026.
Original metadata (oai_dc) 
<oai_dc:dc xmlns="http://www.openarchives.org/OAI/2.0/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:oai_dc="http://www.openarchives.org/OAI/2.0/oai_dc/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.openarchives.org/OAI/2.0/oai_dc/  http://www.openarchives.org/OAI/2.0/oai_dc.xsd">
	<dc:title xml:lang="en-US">THE RECENCY EFFECT OF ACCOUNTING INFORMATION</dc:title>
	<dc:creator>Hartono, Jogiyanto</dc:creator>
	<dc:subject xml:lang="en-US">behavioral accounting; behavioral finance; behavioral market research; belief adjustment theory; Hogarth and Einhom; large firm bias; the recency effect; sequence of information; survivorship bias</dc:subject>
	<dc:description xml:lang="en-US">This study tests the joint effects of dividend and earnings information. A study of joint effects is justified for the following reasons. First, dividends and earnings are considered two of the most important signaling devices (Aharony and Swary 1980) that investors use in evaluating stock prices. Second, dividends and earnings are 'garbled' information (Ohlson 1989). Dividends and earnings may contain corroborating or disconfirming news. Third, investors may be have with memory, revising beliefs in complex ways in evaluating a sequence of information. Prior dividend studies that controlling for earnings announcement effects do not address these possibilities. Using Hogarth and Einhorn's (1992) belief-adjustment theory, this study models the behavior of investor reactions to joint dividend and earnings surprises. The theory predicts that order and timing of dividend and earnings surprises have different effects on stock returns. When dividend and earnings surprises have opposite signs (mixedevidence), the theory predicts that later surprises have a larger impact on stock returns than do earlier surprises (the recency effect hypothesis). The evidence for the recency  effect hypotheses is relatively strong. In three out of four cases of mixed evidence (positive earnings, negative earnings and positive dividend surprises), the recency effect hypotheses are supported.</dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:date>2012-01-12</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/5536</dc:identifier>
	<dc:identifier>10.22146/gamaijb.5536</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 6, No 1 (2004): January-April; 85-116</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/5536/4507</dc:relation>
</oai_dc:dc>