scholarly journals PRINCIPLES OF PRUDENTIAL IN IFRS FINANCIAL STATEMENTS AND ITS EFFECT ON EARNINGS RESPONSE COEFFICIENT AND PROFIT MANAGEMENT

2017 ◽  
Vol 16 (2) ◽  
Author(s):  
Arna Suryani ◽  
Eva Herianti
Keyword(s):  
Earnings Management ◽  
Precautionary Principle ◽  
Financial Statements ◽  
Significant Positive Effect ◽  
Earnings Response Coefficients ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response ◽  
Positive Effect

<p>The purpose of this study is to determine the effect of prudential principle of financial statements in IFRS on earnings response coefficients and profit management of manufakturing companies. This study uses analytical methods Partial Least Square (PLS) through analisys software called Smart PLS 2.0 M3. The object of this research is manufacturing companies in Indonesia with a total of 57 analysis unit manufacturing company during the period from 2013 to 2015.</p><p>Based on the results of the study, it is obtained the following findings: the precautionary of financial principle is proven to have a significant positive effect on the earnings response coefficient. The prudential financial principle is proven to have significant harmful impact on earnings.Manajemen is proved to have significant positive effect on banking principles prudential reports. Then, precautionary principle financial statements have greater direct influence on earnings response coefficients.</p><p>This study has implications both theoretically and manajerial. The theoretical implication, the study makes an important contribution in the development of the theory of the precautionary principle financial statements, earnings response coefficients and earnings management. Managerial implications, this research has implications for users of financial statements in taking decision that is not only based on accounting figures, but also need to look at the quality of earnings presented. The precautionary principle financial statements required to reduce opportunistic earnings management so as to improve the quality of earnings and designated by increased earnings response coefficients.<br /> <br /> <strong>Keywords</strong>: Principle of Prudence, Financial Statement, Earnings Response Coefficient, Profit Management</p>

scholarly journals The Effect of Earnings Management and Earnings Persistence on Earnings Response Coefficient: Evidence from Indonesia

2018 ◽  
Vol 6 (1) ◽  
pp. 59
Author(s):  
Suwarno .
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Earnings Persistence ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response ◽  
Negative Effect ◽  
Positive Effect

This study aims to examine the effect of earnings management and earnings persistence on earnings response coefficient. The sample of research is consumer sector company period 2013 - 2016 which listed in Indonesia stock exchange. The results showed that earnings management had a negative effect not significant on the income response coefficient. The earnings management will reduce the quality of earnings that will negatively reacted investors. While earnings persistence positive effect on earnings response coefficient.

scholarly journals FAKTOR–FAKTOR YANG MEMPENGARUHI SENSITIVITAS LABA PADA INDUSTRI BARANG KONSUMSI DI INDONESIA

2014 ◽  
Vol 2 (2) ◽  
Author(s):  
Candra Romanda
Keyword(s):  
Life Cycle ◽  
Default Risk ◽  
Financial Statements ◽  
Dividend Payout ◽  
Earnings Response Coefficients ◽  
Earnings Growth ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response ◽  
Corporate Life Cycle

Candra Romanda, S.E., M.SiSTIE Rahmaniyah SekayuE-mail: [email protected] purpose of this study was to analyze the influence of conservative financial statements, thecompany’s life cycle, earnings growth, dividend payout ratio, default risk and size of the company’searnings response coefficients in the Consumer Goods Industry in Indonesia. The populationsare 32 consumption industrial enterprises which are listed in Indonesia Stock Exchange 2007 –2010. Respondent are 20 companies which were chosen by using purposive sampling. To knowwhether simultaneously the independent variables affect to earnings response coefficient usedthe F test and individually the t test. The results shown by the first model that conservatism didnot affect the financial statements of earnings response coefficients. In addition, there were nosignificant differences in market response to the tendency of financial reporting either a conservativeor optimistic. The company’s life cycle has positive and significant impact on earningsresponse coefficients and earnings response coefficients are the differences between the categoriesof corporate life cycle. Earnings growth has positive and significant impact on earningsresponse coefficients. Dividend payout ratio has no effect on earnings response coefficients,Default risk has no effect on earnings response coefficients, and company size has no effect onearnings response coefficients.Keywords: Earnings response coefficient, Financial Conservatism, Corporate Life Cycle, IncomeGrowth, Dividend Payout Ratio, Size of the Company, Default Risk.

The Effect of Voluntary Disclosure and Preemptive Preannouncements on Earnings Response Coefficients (ERC) When Firms Manage Earnings

2003 ◽  
Vol 18 (3) ◽  
pp. 379-409 ◽  
Author(s):  
Joshua Ronen ◽  
Tavy Ronen ◽  
Varda (Lewinstein) Yaari
Keyword(s):  
Earnings Management ◽  
Voluntary Disclosure ◽  
Bad News ◽  
Good News ◽  
Earnings Response Coefficients ◽  
Earnings Response Coefficient ◽  
Earnings Surprise ◽  
Response Coefficient ◽  
Earnings Response ◽  
Disclosure Strategy

We study analytically the effect of preliminary voluntary disclosure and preemptive preannouncement on the slope of the regression of returns on earnings surprise—the earnings response coefficient (ERC). When firms do not manage earnings, additional disclosure has no effect, and the ERC is proportional to price/permanent earnings ratio. If they manage earnings by attempting to inflate them, the response to (100% credible) negative earnings surprise is stronger than the response to (less than 100% credible) positive surprise. To avert litigation, firms that manage earnings adopt a partial voluntary disclosure strategy—either public revelation of good news and withholding bad news, or public revelation of bad news and withholding good news. Voluntary disclosure affects ERC on positive earnings surprise only, depending on what the firm reveals: the good- news revealing ERC (GRC) is higher than the bad-news revealing ERC (BRC), because good news enhances the credibility of the positive earnings surprise, even though the market discounts good news. Furthermore, preemptive pre-announcements improve ERC accuracy by narrowing the scope of earnings management.

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). 

The influence of some factors about the earnings response coefficient (ERC) from the perspective earnings management (GR)

2018 ◽  
Vol 16 (2) ◽  
Author(s):  
Nathan Vasconcellos de A. R. Machado ◽  
Valéria Gama Fully Bressan ◽  
Wagner Moura Lamounier ◽  
Luís Carlos Barbosa dos Santos
Keyword(s):  
Earnings Management ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

scholarly journals Pengaruh Kinerja Keuangan Bank Terhadap Koefisien Respon Laba Melalui Investment Opportunity Set (Studi Kasus pada Bank Umum yang Terdaftar di Bursa Efek Indonesia Periode Tahun 2011-2016)

2020 ◽  
Vol 5 (1) ◽  
pp. 27
Author(s):  
Atti Rasnawati
Keyword(s):  
Financial Performance ◽  
Investment Opportunity ◽  
Earnings Response Coefficient ◽  
Economic Decisions ◽  
Good Corporate Governance ◽  
Response Coefficient ◽  
Investment Opportunity Set ◽  
Earnings Response ◽  
Measure Of Performance

This research raises the issue of banking performance including Risk Profile, Good Corporate Governance, Earning and Capital (RBBR or RGEC). Profit achieved by a company is a measure of performance and is considered by investors or creditors in making decisions to make investments or to provide additional credit. The low quality of earnings will make the decision making mistakes of the users such as investors and creditors, so that the value of the company will decrease. Earnings quality will be measured by using earnings response coefficient. Low The earnings response coefficient shows that earnings are less informative or in other words less qualified for investors to make economic decisions. The purpose of this study was to examine and determine the EFFECT of the Bank's Financial Performance on the Coefficient of Earnings Response through the Investment Opportunity Set. The analysis tools used include CAR, NPL, LDR, NIM, and GCG for bank financial performance. Then MBVE for investment opportunity set and for KRL using CAR, EU and RT. The results of this study indicate that the bank's financial performance has a positive and insignificant effect on the earnings response coefficient and earnings response coefficient can be explained by the bank's financial performance of 28.5% and the remaining 71.5% is explained by other variables outside the financial performance of the bank under study. Then the bank's financial performance has a negative and significant effect on the investment opportunity set and the earnings response coefficient can be explained by the bank's financial performance of 10.1% and the remaining 89.9% is explained by other variables outside the financial performance of the bank under study. Furthermore, the investment opportunity set has a positive and significant effect on the earnings response coefficient and the earnings response coefficient can be explained by an investment opportunity set of 26.4% and the remaining 73.6% is explained by other variables outside the financial performance of the bank under study.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH KOTA SEMARANG

KINERJA ◽  
2016 ◽  
Vol 20 (2) ◽  
pp. 179
Author(s):  
Lilis Setyowati ◽  
Wikan Isthika ◽  
Ririh Dian Pratiwi
Keyword(s):  
Human Resources ◽  
Internal Audit ◽  
Financial Statements ◽  
Financial Statement ◽  
Primary Data ◽  
Significant Positive Effect ◽  
Role Of It ◽  
Positive Effect

AbstractThe purpose of this study is analyze the factors influence the quality of financial statement .This study uses primary data obtained from questionnaires to accounting of SKPD Semarang. The method used in this research is multiple regression analysis. The results of this study indicate that (1) the variable role of information technology did not significantly affect the quality of financial statements, (2) the competence of human resources significant positive effect on the quality of financial statements, (3) the role of internal audit significant positive effect on the quality of financial statements.Keywords: role of IT, competence of human resources, role of internal audit, and quality of financial statement

scholarly journals A Study on the Relationship between Earnings Management Incentives and Earnings Response Coefficient

2016 ◽  
Vol 36 ◽  
pp. 232-243
Author(s):  
Mohsen Hosseini ◽  
Kamal Nadafi Chalestori ◽  
Saeid Rezahi Hi ◽  
Ehsan Ebrahimi
Keyword(s):  
Earnings Management ◽  
Earnings Response Coefficient ◽  
Management Incentives ◽  
Response Coefficient ◽  
Earnings Response ◽  
The Relationship

scholarly journals Revisions about Government Subsidy Disclosures and Investors’ Response to Earnings Reports: Evidence from the 2017 Government Subsidy Disclosures

2019 ◽  
Vol 5 (2) ◽  
pp. 26
Author(s):  
Xiaoyu Hu ◽  
Jinying Tang ◽  
Qun Wang
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Government Subsidy ◽  
Difference In Differences ◽  
Quality Of Information ◽  
Operating Income ◽  
Earnings Response Coefficient ◽  
Earnings Response ◽  
The Government

We examine whether the quality of information in earnings reports, as indicated by the earnings response coefficient (ERC) decreases when the measurement and disclosure of government subsidy has been changed by revising accounting standards. According to the old accounting standards in China, the gains from government subsidy should be reflected in “non-operating” income. However, the newly revised accounting standards regulates that a part of government subsidy can be reflected in the report item of “other income” in under the operating income item. We use 2017 revisions of accounting standards in China as an instrument to capture a change in the position of financial statements where the government subsidy is revealed. Employing a difference-in-differences design and exploiting the adoption of the new accounting standards, we find a statistically and economically significant decrease in ERC for treated firms relative to controlled firms. Our findings represent the first empirical evidence that the change of government disclosures can negatively affect the information content of earnings report.

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