scholarly journals The Impact of Non-Audit Services on Earning Response Coefficient

2021 ◽  
Vol 9 (SPE2) ◽  
Author(s):  
Mohammad Vahdani ◽  
Javad Mohammadi Mehr
Keyword(s):  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Auditor Independence ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Significant Negative Relationship ◽  
Earnings Response ◽  
The Impact ◽  
Non Audit Services

The present study aims to investigate the impact of non-audit services on earnings response coefficient. It is a library and analytical-scientific research and is based on panel data analysis. In this study, the financial data of 74 companies accepted in Tehran Stock Exchange during the period 2011-2016 have been reviewed.The results demonstrate that non-audit services have a significant negative relationship with earnings response coefficient.Although non-audit services will have benefits such as increased financial statements understandability, auditors’ knowledge-sharing, better relationships between managers and auditors and reduced agency costs, this type of services threatens auditor independence and subsequently, earnings quality will be affected. Thus,the findings of the present study confirm the view thatby providing non-audit services, auditor independence is affected, resulting in a negative reaction to earnings.

scholarly journals Determinants of Earnings Response Coefficient in the Nigerian Post-IFRS Implementation Era

2021 ◽  
pp. 24-31
Author(s):  
Sunny Biobele Beredugo
Keyword(s):  
Stock Exchange ◽  
Systematic Risk ◽  
Secondary Data ◽  
Least Square ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Ex Post ◽  
Earnings Response ◽  
The Impact ◽  
Ifrs Implementation

Aims: The study assessed the determinants of earnings response coefficient in the Nigerian Post-IFRS implementation era. It critically looked at the impact of investors' protection, earnings persistency, and systematic risks on earnings response coefficients. Study design: The study adopted an ex-post facto research design. Methodology: A sample of 35 companies was drawn from the population of the listed companies in the Nigerian Stock Exchange between 2013 to 2020. Secondary data was used. The Generalized Least Square was used to test the hypotheses Results: The study shows that the earnings response coefficient improves with the influence of investors’ protection, systematic risk, and earning persistency. Although the influence from systematic risk brings about an inverse effect on ERC, it is a fundamental determinant nonetheless. It was recommended that firms should improve on their investors' protection and that their financial reports should be designed to improve the information contents of accounting earnings to include inherent socio-economic risk, past and prospective earnings.

scholarly journals PROFITABILITAS, LEVERAGE, PERSISTENSI LABA DAN EARNING RESPONSE COEFFICIENT: MODERASI UKURAN PERUSAHAAN

2019 ◽  
Vol 1 (1) ◽  
Author(s):  
Mukhtar A Adam ◽  
Nurdin Nurdin ◽  
Muhammad Tahrim Imam
Keyword(s):  
Stock Exchange ◽  
Panel Data Analysis ◽  
Earnings Persistence ◽  
Company Size ◽  
Manufacturing Companies ◽  
Independent Variables ◽  
Earnings Response Coefficient ◽  
Test Tool ◽  
Response Coefficient ◽  
Earnings Response

Tujuan penelitian ini adalah: untuk menguji pengaruh profitabilitas, leverage dan persistensi laba terhadap earning response coefficient, serta untuk menguji efek moderasi ukuran perusahaan terhadap earning response coefficient dengan variable independen profitabilitas, leverage dan persistensi laba. Pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia. Jumlah sampel penelitian adalah sebanyak 31 sampel. Metode analisis dalam penelitian ini adalah analisis data panel dengan menggunakan eviews sebagai alat uji statistik. Hasil penelitian ini menunjukan bahwa profitabilitas, leverage dan persistensi laba tidak berpengaruh terhadap earning reponse coefficient. Ukuran perusahaan mampu memoderasi pengaruh profitbilitas dan leverage pada earning response coefficient. Ukuran perusahaan tidak mampu memoderasi pengaruh persistensi laba pada earning response coefficien.Kata Kunci: Profitabilitas, Leverage, Persistensi Laba, Ukuran Perusahaan, dan Earning Response CoefficientThe purpose of this research is: to examine the effect of profitability, leverage and earnings persistence on earning response coefficient, and to examine the effect of moderation of company size on earning response coefficient with independent variables profitability, leverage and earnings persistence. In manufacturing companies listed on the Indonesia Stock Exchange. The number of research samples is 31 samples. The method of analysis in this study is panel data analysis using eviews as a statistical test tool. The results of this research indicate that profitability, leverage and earnings persistence have no effect on the earning response coefficient. company size is able to moderate the effect of profitability and leverage on earnings response coefficient. company size is not able to moderate the effect of earnings persistence on earnings response coefficient.Keywords: Profitability, Leverage, Earnings Persistence, Company Size, and Earning Response Coefficient

scholarly journals The impact of leverage on the earning response coefficients

2020 ◽  
Vol 9 (4) ◽  
pp. 277-285
Author(s):  
Aulia Puspita Dewi ◽  
Sutrisno T. Sutrisno ◽  
Lilik Purwanti
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Earnings Response Coefficients ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Analysis Technique ◽  
Earnings Response ◽  
The Impact

This study aims to examine whether there is an influence of leverage on earnings response coefficients with corporate governance as moderation. This study uses 108 data of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the year of observation 2016 to 2018. The analysis technique used in this study is a moderated regression analysis using SPSS version 24. The results of this study provide empirical evidence that leverage has an effect but not significant on the earnings response coefficient. This study also provides empirical evidence that corporate governance is unable to strengthen or weaken the effect of leverage on the earnings response coefficient.

PENGARUH KONSERVATISMA AKUNTANSI TERHADAP EARNINGS RESPONSE COEFFICIENT (ERC) DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI

2008 ◽  
Author(s):  
Olliza Mayesti ◽  
Resti Yulistia Muslim
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Negative Influence ◽  
Accounting Conservatism ◽  
Managerial Ownership ◽  
Net Income ◽  
Manufacturing Companies ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

The objective of this study is to examine whether corporate governance influence the relation between accounting conservatism and Earnings Response Coefficient (ERC). The accounting conservatism proxy used in this research is accruals obtained from differences between net income and cash flow. Sample consists of 31 manufacturing companies that listed in Indonesian Stock Exchange since 2003­2006. Hypotheses are examined by using multiple regressions. The result shows that there is a negative influence of accounting conservatism to Earnings Response Coefficient. Managerial ownership as a moderating variable did not affect the relation between accounting conservatism and Earnings Response Coefficient, but independent board of commissioner composition as a moderating variable affected the relation between accounting conservatism and Earnings Response Coefficient.

PENGARUH EARNINGS MANAGEMENT TERHADAP EARNINGS QUALITY

2010 ◽  
Author(s):  
Pupun Tri Wahyuni ◽  
Resti Yulistia Muslim
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Manufacturing Companies ◽  
Financial Report ◽  
Earnings Response Coefficient ◽  
Discretionary Accrual ◽  
Response Coefficient ◽  
Earnings Response

This research objective is to axamine empirically the influence of earnings management on earnings quality. The study motivated by the controversy of previous study about earnings management and earnings quality. Earnings management was measured by Discretionary Accrual and earnings quality was measured by Earnings Response Coefficient (ERC). The units were 128 (16x8) Quartal financial report in manufacturing companies listed in the Jakarta Stock Exchange, started from the year 2005 up to 2006. The data was collected using purposive sampling method. Statistical method used to test the hypotheses was multiple regressions. The result of the research showed that: the influence of earnings management on earnings quality was negative, sig 0.049. It means that the lower earnings management will be followed by higher earnings quality. This study supported the result of Fetham and Pae (2000), Nelson et al. (2000), Scott (2000), Lobo and Zhou (2001), also Teixeira (2002), Pudjiastuti (2006). 

scholarly journals Cost Control and Profitability of Selected Manufacturing Companies in Nigeria

2019 ◽  
Vol 2 (1) ◽  
pp. 14-33
Author(s):  
Godwin Emmanuel Oyedokun ◽  
Amos Olafusi TOMOMEWO ◽  
Sunday Ajao OWOLABI
Keyword(s):  
Cost Control ◽  
Raw Materials ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Sampling Technique ◽  
Financial Statement ◽  
Manufacturing Companies ◽  
Significant Negative Relationship ◽  
The Cost ◽  
The Impact

Profitability in manufacturing companies in Nigeria depends on the ability of the companies to grow their earnings and tame their cost profile through cost control techniques. Many manufacturing companies seem not to understand these costs and the impact they have on profitability. This study examined the effect of cost control on the profitability of selected manufacturing companies in Nigeria. The population of the study was the 78 manufacturing companies listed on the Nigeria Stock Exchange as at 31st December 2017. A sample frame of 23 companies listed on the consumer goods sector was selected out of which five companies were considered for a period of 10 years (2005 – 2017). The study adopted a judgmental sampling technique. Data were obtained from the audited financial statement, and the accounts have already validated by regulatory authorities. The study took descriptive and inferential (regression) statistics. It was found that there is a significant negative relationship between the cost of raw materials (CoRM) and profit before tax of manufacturing companies in Nigeria. The study concluded that cost control has a significant positive effect on the profitability of manufacturing companies in Nigeria for the period under review. Therefore, it is recommended adequate management and alternative sourcing of raw materials.

scholarly journals PENGARUH UKURAN PERUSAHAAN, LEVERAGE, RISIKO SISTEMATIK, DAN INVESTMENT OPPORTUNITY SET TERHADAP EARNINGS RESPONSE COEFFICIENT PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PADA TAHUN 2012-2014

2018 ◽  
Vol 20 (3) ◽  
pp. 463
Author(s):  
Ivan Kurnia, Sufiyati
Keyword(s):  
Firm Size ◽  
Sampling Method ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Manufacturing Companies ◽  
Investment Opportunity ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Investment Opportunity Set ◽  
Earnings Response

The purpose of this research is to gain empirical evidence about the influence of firm size, leverage, systematic risk, and investment opportunity set on earnings response coefficient on manufacturing companies listed in Indonesia Stock Exchange for 2012-2014. Samples selected by using purposive sampling method. This research used a sample of one hundred fourty one manufacturing companies. The result of this research indicate that only systematic risk have an influence on earnings response coefficient while firm size, leverage, and investment opportunity set has not an influence on earnings response coefficient. For a better results, further research may add another variable that influence on earnings response coefficient.

scholarly journals HUBUNGAN INFORMASI PELAPORAN EARNINGS AKUNTANSI TERHADAP PERGERAKAN RETURNS SAHAM PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK JAKARTA

2008 ◽  
Vol 8 (2) ◽  
pp. 133
Author(s):  
Rosna K. Haraharap ◽  
Arga Fitria
Keyword(s):  
Random Sampling ◽  
Stock Return ◽  
Stock Exchange ◽  
Lower Sensitivity ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Sensitivity Level ◽  
Earnings Response ◽  
Negative Earnings

<p class="Style1"><strong><em>The purpose of this research is to know whether the negative earnings stock have lower sensitivity level or lower Earnings Response Coefficient (ERC) to stock return than the positive </em></strong><strong><em>earnings stock and this research also aim to know whetherthe negative earnings stock will have </em></strong><strong><em>weaker level strength of correlation (R</em></strong><strong><em><sup>2</sup></em></strong><strong><em>) to stock return than the positive earnings stock. The </em></strong><strong><em>samples are 25 fisted manufactured company at Jakarta Stock Exchange during 2000-2004 which </em></strong><strong><em>selected using purposive non random sampling. Data analyze method used is linier regression. </em></strong><strong><em>The result of this research is that the negative earnings stock will have the lower level sensitivity or </em></strong><strong><em>lower Earnings Response Coefficient (ERC) to stock return, compared to the level sensitivity </em></strong><strong><em>(ERC) of positive earnings stock This research also finds that the negative earnings stock will have </em></strong><strong><em>weaker level strength of correlation (R</em></strong><strong><em><sup>2</sup></em></strong><strong><em>) to stock return, compared to the level strength of correla­tion (R</em></strong><strong><em><sup>2</sup></em></strong><strong><em>) of positive earnings stock.</em></strong></p><p class="Style1"><strong><em>Keywords: Negative earnings, Positive earnings, Stock return, Earnings response </em></strong><strong><em>coefficient, Return-earnings association</em></strong></p>

scholarly journals Refleksi Perataan Laba terhadap Respon Pasar

2017 ◽  
Vol 2 (2) ◽  
pp. 129
Author(s):  
Ratna Wijayanti Daniar Paramita
Keyword(s):  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Income Smoothing ◽  
Market Response ◽  
Manufacturing Companies ◽  
Earnings Response Coefficient ◽  
Earnings Information ◽  
Response Coefficient ◽  
Earnings Response

<p><em><strong><em>Abstract</em></strong></em></p><p><em>The purpose of this study is to obtain empirical evidence, examine and explain the effect of companies that implement income smoothing towards the market response, with voluntary disclosure as moderating variables. This study uses the secondary data of 143 manufacturing companies that go public in BEI (Indonesian Stock Exchange) during 2011-2015. This research variables include income smoothing as an independent variable, the market response is proxies by Earnings Response Coefficient (ERC) as the dependent variable and voluntary disclosure is moderating variable. The data analysis methods is regression with single moderating variable. The study finds that income smoothing affects the market response both individually and partially. The results also reveal that earnings information delivered on the date of the announcement was responded positively by investors. However, the presentation of the full report in the form of voluntary disclosure actually reduces the market response to earnings at the date of announcement</em>.</p><p><strong>Abstrak</strong></p><p>Tujuan penelitian ini adalah untuk memperoleh bukti empirik, menguji dan menjelaskan pengaruh perusahaan yang melakukan income smoothing terhadap respon pasar dengan <em>voluntary disclosure</em> sebagai variabel pemoderasi pada perusahaan manufaktur yang <em>go public</em> di BEI tahun 2011-2015 sebanyak 143 perusahaan. Variable penelitian ini income smoothing sebagai variabel bebas, respon pasar diproksikan dengan <em>Earnings Response Coefficient (ERC)</em> sebagai variabel terikat dan <em>voluntary disclosure</em> adalah variabel moderasi. Metode analisis data menggunakan regresi dengan variabel moderasi tunggal. <em>Income smoothing</em> secara individu dan parsial berpengaruh terhadap respon pasar. Laba yang disampaikan pada tanggal pengumuman direspon positif oleh investor. Namun demikian penyajian laporan secara lengkap dalam bentuk <em>voluntary disclosure</em> justru mengurangi respon pasar terhadap laba pada tanggal pengumuman.</p><p><em><br /></em></p>

scholarly journals LEVERAGE, PERSISTENSI LABA DAN SISTEMATIK RISK, TERHADAP EARNINGS RESPONSE COEFFICIENT PADA ENTITAS INDUSTRI

2018 ◽  
Vol 7 (2) ◽  
Author(s):  
Lalu Takdir Jumaidi ◽  
Rijal Rijal
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Manufacturing Companies ◽  
Earnings Response Coefficient ◽  
Earnings Information ◽  
Response Coefficient ◽  
Economic Decision Making ◽  
Other Information ◽  
Earnings Response

Investors use financial statement information in their investment decisions. Earnings is usually the main consideration of investors in making decision. However, the increase in earnings is not always followed by positive stock price changes. It shows that in economic decision-making the investors not only need information about the company's financial condition, i.e profit, but also other information. Therefore, investors need useful tool to predict the up or rise of stock price namely earnings response coefficient which shows market reaction on earnings information published by company. If the investor perceived the information content of the announced profits as good quality then the investors will react positively to earnings anouncement.Therefore purpose of this study is to examine the effect of systematic risk, leverage and earnings persistence on earnings response coefficient at manufacturing companies listed on the Stock Exchange. The population in this study are all manufacturing companies listed on the IDX in 2015. The sample of this study is determined by the method of purposive sampling and this study obtained 56 sample companies. The study usesecondary data which is obtained from www.idx.co.id. The results of this study based on multiple regression analysis indicate that systematic risk, leverage and profit persistence have no effect on earnings response coefficient.

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