EARNI NG SURPRISE, KETEPATAN WAKTU PENGUMUMAN LAPORAN KEUA NGAN DAN REAK SI PASAR

The purpose of this study was to examine the influence of the earning surprise to the market reaction and moderated by the timeliness of the announcement the financial statements. There are two indications of the company's profit level announcements are good news to increase profits and bad news for loss of profit of the company. With the announcement of the good profit improvement and a decrease in profit the company, then this indicates the existence of elements surprise in each of the company's earnings announcement. In addition, one indication of the quality of profit is profit which is served in a timely. To make a valuable financial information for users of the financial statements must have timely and delivered as soon as possible to keep the relevance of the content of the information. Testing is using a linear regression model and event study. Research on testing of obtained results, that the earning surprise positive will be positive respons by the market. It can also be said that earning surprise effect positive to the market reaction, the influence of this reaction goes in the same direction where the earning surprise negative effect negatively to market reaction. Based on the findings of this research, that the timeliness of financial reports announcement strengthens the influence of the earning surprise to the market reaction. However, these results have not been proven in research due to the existence of the limitation of the number of samples used in the study. Moreover, the results also prove that influence earning surprise negatively to the weak market reaction when the announcement of the financial report was announced in a timely manner. Based on the findings of this research, that the announcement of financial statements indicated a decline in profits or are earning negative surpise and was announced on time will weaken the influence of earning surprise negatively to market reaction