Indonesia Conference Directory

PURPOSE/AIM & BACKGROUND The financial statements issued by the company contain information about the condition and performance of the company during the related period. Information in financial statements is useful for users of financial statements for decision making as investors for investment decision making. In 2013, the Financial Accounting Standards Board (DSAK) in Indonesia revised the Statement of Financial Accounting Standards (PSAK) 1 regarding the presentation of financial statements which added the components of other comprehensive income (OCI) to the statement of profit or loss and other comprehensive income. In measuring and evaluating component of OCI, subjectivity is contained due to estimations, assumptions, and judgments (Rissi, 2016). The component of OCI consists of unrealized gains or losses that provide more comprehensive information to users such as investors for investment decisions. Company managers provide information through accounts that signal investors to help make investment decisions (Godfrey et al, 2010). Value relevance is measured by the ability of information in financial statements to convey information that affects stock prices (Francis and Schipper, 1999). This research will discuss the effect of the income statement and other comprehensive income, namely net income, comprehensive income, other comprehensive income, other comprehensive income with low subjectivity, and other comprehensive income with high subjectivity to stock returns. This research was conducted on infrastructure, utilities, and transportation companies listed on the Indonesia Stock Exchange in the 2014-2018 period. METHODOLOGY In this research, panel data regression analysis using Eviews software consists of 3 models to be selected, namely the common effect model, fixed effect model, random effect model. To estimate the regression model that will be chosen, 3 tests were performed to select the most appropriate model to use. The first is the chow (likelihood ratio) test to determine the chosen common effect model or fixed effect model. Second, the thirst test to determine the fixed effect model or random effect model chosen. And third, lagrange multiplier (LM) test to determine the common effect model or random effect model chosen. Then, the researchers conducted hypothesis testing. First, a partial test (t test) to see the effect of the independent variable partially on the dependent variable (Kurniawan, 2016) and secondly, the coefficient of determination (R2) to find out how much the variation of the independent variables can explain the dependent variable (Nachrowi and Usman, 2006). FINDINGS/RESULTS In this study, the selected regression model is the common effect model and the test results are as follows: Variable Coefficient Std. Error t statistic Prob. NIPS 0,216299 0,069499 3,112242 0,0033 CIPS -0,164921 0,057706 -2,857933 0,0065 OCI -0,131916 0,045250 -2,915241 0,005