Empirical Results of Value Relevance on the Accounting Information

2. Empirical Results of Value Relevance on the Accounting Information

Classical assumptions of data show that: (1) no autocorrelation, (2) no multicollinearity problem, (3) there is a heteroscedasticity problem, and (4) indicate not normal ditstribution. Efforts have been made to solve the problem of heteroscedasticity by deflation, logs/ natural logs, but it doesn‟t solve the problem. This study uses a large data (840 observations), so the assumed as normal distribution (Hair et al., 2010; Gujarati, 2003). Equation of value relevance of accounting information is as follows. HSu it = 31,846 + 0,544NBEn it + 3,431EPS it + 244,549DAKOT it - 0,344LOPS it

+ 0,158INV it + 170,469DATW it ………............................................. (6) R 2 (Adj.) = 0,840 (0,839)

It shows that F value is 727.067 with a probability value is 0.000, which it means statistically significant at 1 percent. Value of R 2 (adj.) showing the variation can be It shows that F value is 727.067 with a probability value is 0.000, which it means statistically significant at 1 percent. Value of R 2 (adj.) showing the variation can be

2.1. Hypothesis 1. The hypothesis one states that equity (NBEn) positively affects the company's market value. Statistical test result shows that t-calculation is 20.028 and the probability is 0.000 and the coefficient is positive, so that the Ho 1 successfully rejected. This result confirms previous studies (e.g. Ohlson, 1995; Cahan et al., 2000; Sasongko, 2008).

2.2. Hypothesis 2. The hypothesis two states that the performance of the company (EPS) positively affects on the company's market value. Statistical test result shows that t-calculation is 28.588 and the probability is 0.000 and the coefficient is

positive, then the Ho 2 successfully rejected. This result confirms previous studies (e.g. Cahan et al., 2000; Mayangsari, 2004; Naimah and Main, 2006; Sasongko, 2008).

2.3. Hypothesis 3. The hypothesis three states that other comprehensive income (DAKOT) positively affects the company's market value. The result of the statistical test shows that t-calculation is 4.016 and the probability is 0.000 and the

coefficient is positive, then the Ho 3 successfully rejected. The test result is in line with the findings of Cahan et al. (2000), Kanagaretnam et al. (2009) and Jones and Smith (2011).

2.4. Hypothesis 4. The hypothesis four states that growth in current operating asset (ALOPS) negatively affects the company's market value. The result of the statistical test shows t-calculation is -5.613 and probability value is 0.000 and the

coefficient is negative, then Ho 4 successfully rejected. The test result confirms the coefficient is negative, then Ho 4 successfully rejected. The test result confirms the

2.5. Hypothesis 5. The hypothesis five links the growth (investment) company resource in the form of fixed asset to a market value of the company. Investment in fixed asset (INV) has a positively effect on the company's market value. The result of the statistical test shows t-calculation is 2.237 and probability value is 0.026, and

the coefficient is positive, then Ho 5 successfully rejected. This result confirms previous research results (for example, Kerstein and Kim, 1995; Cahan et al., 2000; Sasongko, 2008).

2.6. Hypothesis 6. The hypothesis six states that the company's resource in the form of intangible asset (DATW) positively affects the company's market value. Statistical test result showed that t is 2.776 and the probability value is 0.006, and

the coefficient is positive, then Ho 6 successfully rejected. This result confirms previous research results (e.g., Sougiannis, 1994, Ely and Waymire, 1999; Lako, 2006).