scholarly journals Corporate Governance Disclosure and Earnings Quality: Study on Companies Listed on The ASEAN Star Financial Times Stock Exchange (FTSE)

2021 ◽  
Vol 16 (2) ◽  
pp. 207-232
Author(s):  
Robick Faliana ◽  
◽  
Wiwik Utami ◽  
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Governance Mechanism ◽  
Price Changes ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

The governance mechanism is different for each company. Therefore, companies need an indicator to measure the quality of governance and one of them is the ASEAN Scorecard. This indicator is used as a standard for measuring the quality of corporate governance in the ASEAN region. The corporate governance mechanism can be a factor in price changes in the stock market. Investors will react to any issues related to it. Price changes that occur on the stock market are a measure of the size of investors in investing because they can affect expected earnings. Although there is quite a lot of research related to it, research on earnings quality that discusses market response to price changes that occur due to the influence of governance mechanisms is limited. This study aimed to examine the effect of corporate governance on earnings quality using companies listed on the Financial Time Stock Exchange ASEAN Star (FTSE ASEAN Star). The study was conducted by examining financial ratios of companies using a cross-sectional data regression model with the Earnings Response Coefficient (ERC) as a proxy. The results showed that corporate governance affected ERC, especially on the disclosure of corporate governance and shareholder rights. Keywords: ASEAN scorecard, corporate governance, earnings response coefficient, disclosure, fraud

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 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 Corporate Governance Sebagai Variabel Pemoderasi Dalam Pengaruh Kualitas Laba Terhadap Nilai Perusahaan

2019 ◽  
Vol 2 (01) ◽  
pp. 116
Author(s):  
Esty Apridasari
Keyword(s):  
Corporate Governance ◽  
Conflict Of Interest ◽  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Earnings Response Coefficient ◽  
Earnings Response

The separation of ownership between the principal and agent in a company could cause a conflict of interest where both parties try to maximize their own interests. The mechanism of corporate governance is expected to minimize this conflict of interest. This study examines the corporate governance variables as moderating variable in the influence of earnings quality on firm value. The population of this research is manufacturing company listed on the Indonesia Stock Exchange in 2014-2016 with 66 manufacturing companies and 175 observations as sample. Determination of the sample in this study is carried out by purposive sampling method. Coorporate governance is measured by manajerial ownership, institutional ownership, independent commissioners, and the audit committee), earnings quality is measured by Earnings Response Coefficient (ERC), and the firm value is measured with Price Book Value (PBV). Testing hypotheses using regression analysis. The results show that mangerial ownership has not been proven as moderating variable in the influence of earnings quality on firm value. Institutional ownership, independent board of commissioners, and audit committee could moderate the influence of the earnings quality to firm value.

scholarly journals THE EFFECTS OF CORPORATE GOVERNANCE, FIRM SIZE, PROFITABILITY, AND GROWTH OPPORTUNITIES ON THE VALUE RELEVANCE OF ACCOUNTING EARNINGS – A STUDY OF THE INDONESIA STOCK EXCHANGE

2020 ◽  
Vol 12 (2) ◽  
pp. 174-193
Author(s):  
Surinastiti Eka Putri ◽  
Rosinta Ria Panggabean
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Value Relevance ◽  
Stock Exchange ◽  
Growth Opportunities ◽  
Accounting Earnings ◽  
Earnings Response Coefficient ◽  
Good Corporate Governance ◽  
Response Coefficient ◽  
Earnings Response

Capital market serves as an alternative financing-wise and as a means investment-wise. Relevance of accounting information comes out as profound to investors as can be observed within the financial statements of a company. The aim of this study was to figure out the effects of corporate governance, firm size, profitability, and growth opportunities on the value relevance of accounting earnings. The present research used a quantitative method and secondary data in the form of annual reports, and the objects hired were 22 companies listed on the LQ45 index (August of 2018–January of 2019) of the Idonesia Stock Exchange for the period 2015–2017. Analysis was conducted by a descriptive statistical method. The results obtained showed that the variable profitability, which was measured on return on asset, affected the value relevance of accounting earnings, while the variables good corporate governance, firm size, and growth opportunities did not affect the value relevance of accounting earnings. Companies’ management is advocated to optimize the management of the assets in place as it was found in this research that return on asset had an effect on earnings response coefficient. This is necessary so that the companies are able to generate earnings response coefficients to which investors can respond positively.   Keywords: Earnings Response Coefficient, Firm Size, Good Corporate Governance, Growth Opportunities, Indonesia, Return On Asset  

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.

scholarly journals Factors Affecting Earning Response Coefficient at LQ-45 Company in Indonesia Stock Exchange

2020 ◽  
Vol 55 (5) ◽  
Author(s):  
Indrayati ◽  
Basuki Rahmat ◽  
Slamet
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Earnings Management ◽  
Stock Exchange ◽  
Investment Opportunity ◽  
Earnings Response Coefficient ◽  
Good Corporate Governance ◽  
Response Coefficient ◽  
Earnings Response ◽  
Asset Growth

This study examines the influence and relationship of the independent variables of capital structure, earnings management, management performance, earnings, and asset growth. Besides, it focuses on auditor opinion, stock prices, return expectations, the Good Corporate Governance, and the Investment Opportunity Set on the dependent variable, namely, the earnings response coefficient. The samples used were companies on the Indonesia Stock Exchange LQ-45 group and 175 other companies. The research method is event research that explains the influence of capital structure factors, earnings management, asset growth, stock price changes, and other factors, including the Indonesia Stock Exchange index on earnings response coefficient. This study shows that capital structure, dividends, and asset growth significantly affect the Earnings Response Coefficient. In contrast, earnings management, earnings growth, performance, auditor opinion, Good Corporate Governance, and Investment Opportunity Sets do not significantly affect the Earnings Response Coefficient.

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 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>

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