Public Attention and Financial Information as Determinants of Performance in Telecommunication Industry

The remarkable progress of information technology has driven every firm to publish their financial performance by using internet. This circumstance results in the high public attention in order to generate the stock return. In addition, financial information such as financial ratio namely DER, LEV, NPM, ROI, and ROE are supposed to influence the firm's performance either in positive or negative effects. This study focuses on the investigation of public attention (PA) and financial information as determinants of financial performance on four companies in Telecommunication sector, Indonesia Stock Exchange (IDX), within time period from 2007 to 2012. Hereby, we point out that public attention and financial information considerably contribute to firm performance, in which the Pooled Least Square (EGLS) with cross section and period weight is employed. The obtained results show that, Public Attention (PA) positively contributes towards stock return. Further, financial ratio such as debt-to-equity ratio (DER) negatively influences the return. Leverage (LEV), net profit margin (NPM) and return on investment (ROI) are positively related to return. However, return on equity (ROE) shows the contrary sign, in which it negatively influences the return but statistically insignificant. Then, we report that the stock price (LNSP) does not significantly contribute towards return (RET)