Director Characteristics and Stock Price Synchronicity
Abstract
The purpose of this research is to test the effects of directors’ abilities, and nationality on the stock price synchronicity. This study also reexamines the effect of fixed asset valuation models on the stock price synchronicity. The sample was collected randomly from the Indonesia Stock Exchange for the period of 2019-2022, resulting in 200 firm observations to test the hypotheses. However, 72 observations were eliminated due to negative adjusted R-squared and the extreme values. The final sample available for further analysis is 128 observations. Using multiple linear regression analysis, the results show the abilities and nationality of directors has no significant effect on stock price synchronicity. However, fixed asset valuation has a significant effect on stock price synchronicity, suggesting that revaluation models increase the value relevance of fixed assets.
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DOI: https://doi.org/10.24167/jab.v23i2.14444
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