Decision making in accounting and finance focuses on the use and evaluation of accounting information through fundamental analysis. 158 results in a simultaneous relationship between the benefits of the accounting information, risk perception, belief audit and intentions in the law. The purpose of the research is to assess and obtain empirical evidence of the effects analysts' behavior in the decision-making of candidate stock selection in the Indonesian stock exchange by using information utility.
Third, this study is useful for the next accounting behavior researchers with their upcoming research as a study of the decision making process in the financial sector. This belief is based on available information in the market, including the growth of the market price prior to the announcement of the company's net profit. Analysts minimize risk by comparing the company's outlook in the same industry and selecting stocks where potential price growth exceeds that of stock market indices.
Users control unsystematic risk by diversifying across variations in company types, industries, and composition. Since the stock is not prospected, the user will evaluate the performance of individual stocks in the portfolio. Beliefs about the selected share candidates are based on information from the issuer of the financial statements.
Thus, users are more informed about the results of the analysis of accounting figures in the financial statements.
Research Methods 1 Type and Design Research
Interpreters have beliefs about selected stock candidates according to each stock's financial performance. As a result, a user chooses stocks that believe in the stock's performance and outlook because they provide information such as good news, and does not choose stocks because of bad news. Users tend to pick stocks by buying shares of the company's current price (good news) and selling or holding shares in its portfolio (bad news).
The research population consists of the securities analysts in the research and development of Security Company and included in the Securities Analysts Association of Indonesia (AAEI). The sampling technique uses simple random sampling, which means that all securities analysts have an equal chance of being selected as a sample. The benefits of accounting information are the degree of positive or negative effect directly determined by the analyst's beliefs of the effect about the useful information quality in making decisions.
Instruments for measuring the benefits of accounting information were developed by researchers from SAK (IAI, 2012), Ho and Wong (2005) and (Arrozi et al., 2013). This scale measures information usefulness with Figure 1 showing useless accounting information and Figure 5 showing useful accounting information. Unsystematic risk perception is the belief of securities analysts regarding financial statement items that are viewed as potential loss of return.
Unsystematic risk instruments use a Likert scale that measures unsystematic risk with the number 1 with not risky and very risky indicators in Figure 5. Belief revision is a change of primary beliefs (anchoring) to a new belief (adjustment) for analysts of securities. information as good or bad news. The subjective norm is the perception of securities analysts about the power of influence of the views of people who are experts in the field of financial investments that motivates them to make stock selections.
The subjective norms variable was developed by Chow and Chan (2008) and East R. 1993) with four indicators such as observer influence (NS1), friend influence (NS2), mass media influence (NS3) and regulator influence (NS4). ). The Systematic Risk Instrument consists of 5 questions derived from a modification of the instrument created by Gordon and Narayanan (1984) and Farid and Siswanto (1998). Stock selection intent is the intent of selecting a stock candidate, which is determined directly from the securities analysts' belief in the stock's return estimate.
Research Model
170 specifically: desire to own high-return stocks and blue chips, readiness for stock information, desire to review stock performance, desire to recognize new investment, desire to be responsive to stock price changes . and market interest rates.
Result and Disscusion 1 Data Collection
Beliefs revision has a positive influence on stock selection intentions with a coefficient of 1.1265, CR value of 2.4517 and significance probability value (p) of 0.0142 which is less than 0.05. The results prove that intentions are strong in stock selection for securities analysts due to the sophisticated behavior of processing and analyzing information. Unsystematic risk perception positively affects stock selection intentions with a coefficient of 0.9090, CR value of 3.6944 and significance probability value (p) of 0.0002 less than 0.05.
Securities analysts tend to be cautious and rational in making a risky decision in stock selection. 176 The test results showed that a subjective norm positively affects stock selection intentions with a coefficient of 0.6021, the CR value of 2.3720 and the value of significance (p) 0017 less than 0.05. Securities analysts positively influence the strength of observer influence, friend influence, and regulator influence on stock selection intention.
The study found that the most powerful influences to determine the intention of stock selection are only among the friends' influence. The social environment surrounding this securities analyst has a strong commitment to influence securities analysts to determine the intention to stock selection. The test results show that systematic risk perception negatively affects the intention of stock selection with path coefficient - 0.5120, CR value of - 2.2370, and the value of significance (p) 0.0217 less than 0.05.
It indicates that the securities analyst perceives a high systematic or unpredictable risk with precision so that the stock selection targets become low. The test results show that accounting information benefits have a positive impact on stock selection intention with path coefficient of 0.8090, CR value of 2.4694 and significance value (p) of 0.002 less than 0.05. 178 Manifestations are the reality of expected values and the perception of risk as well as the intentions of securities analysts to make stock selection decisions.
It also forms a fundamental knowledge of finance as a conviction for the offenders in the good stock selection. That knowledge has a positive or negative result and influences the attitude to take the stock selection (positively) or leave the stock selection (negatively). Based on Table 5 on indirect influence review of beliefs in the benefits ratio of accounting information with the stock selection indirect influence intention of 1.9501 which is higher than the direct influence of 1.7530.
The indirect influence of unsystematic risk perception on the benefits ratio of accounting information with the intention of stock selection shows the indirect influence of 1.4560 which is higher than the direct influence of 0.8746. This means that the revision of beliefs and risk unsystematic perceptions increases the benefits of accounting information to the stock selection intentions.
Conclusion, Implication, and Limitation 1 Conclusion
Hopefully, it gets a return as a prospect for future profit by diversifying with a negative selection return, so that it will be useful, perspective and valuable for the content of accounting information. 180 when the investment is not profitable in the short term, but provides long-term security. The significance of these findings is that sophisticated securities analysts make rational economic decisions when analyzing accounting information.
The contribution of the global financial crisis in the United States and Europe disrupting the operational mechanism of world capital markets including the Indonesia Stock Exchange. Develop a model in the theory of reasoned action with the induction of variables such as an environmental variable, risk, model, style decisions, controlled factors, as well as internal factors or as an intervening or moderating variable of the warehouse intention models . This variable will provide appropriate behavior because it can explain the motives and interests of securities analysts to behave in stock selection and actions in providing stock recommendations to investors.
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