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 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>

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 PENGARUH CORPORATE SOCIAL RESPONBILITY, PERSISTENSI LABA, DAN STRUKTUR MODAL TERHADAP EARNINGS RESPONSE COEFFICIENT

2016 ◽  
Vol 11 (1) ◽  
pp. 1 ◽  
Author(s):  
Abdur Rahman Dalimunthe
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Earnings Persistence ◽  
Purposive Sampling ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response ◽  
Corporate Social

This study aims to examine the factors that influence the Earnings Response Coefficient on state-owned companies go public listed in Indonesia Stock Exchange. These factors are the corporate social responbility, earnings persistence, and capital structure.The study‟s population is a go-public SOEs company which is listed in Indonesia Stock Exchange within 2008-2011 period. The research sample using purposive sampling. Number of companies studied were 14 (fourteen) as samples and were taken by using purposive sampling method on state-owned companies went public within 2008-2011 period in Indonesia Stock Exchange, bringing the total observations in this research were 56 observations. Methods of data analysis use multiple linear regression analysis. Hypothesis tests using the t test and F test. These results indicate that corporate social responbility, earnings persistence, and capital structure affect the earnings response coefficient simultaneously at the state-owned company publicly traded on the Indonesia Stock Exchange listed period 2008-2011. Only the persistence of earnings are not significantly influence the earnings response coefficient. However, corporate social capital structure responbility and significant negative effect on earnings response coefficient. Keywords: corporate social responsibility, the persistence of earnings, capital structure, earnings response coefficient

scholarly journals PENGARUH KEPEMILIKAN MANAJERIAL, PROPORSI KOMISARIS INDEPENDEN TERHADAP KUALITAS LABA

2015 ◽  
Vol 2 (2) ◽  
Author(s):  
Pedi Riswandi
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Point Of View ◽  
Independent Directors ◽  
Managerial Ownership ◽  
Negative Effect ◽  
Accounting Earnings Management ◽  
Positive Effect

Pedi Riswandi; Ownership structure is very important because it is closely related to the operational control of the company . From the point of view of the theory of accounting , earnings management is determined by the motivation of the company manager . Different motivations will result in a different amount of earnings management , such as the manager who also shareholders of the company with a manager who is not a shareholder and board composition also plays an important role in control of what is done by the executive This study aimed to determine the effect of managerial ownership on earnings quality and the proportion of independent directors on the quality of earnings. The research sample using companies listed in Indonesia Stock Exchange in 2009-2011. "The technique of purposive sampling method. " These results indicate that managerial ownership has a negative effect on the quality of earnings , proportion of independent directors has a positive effect on the quality of earnings. Key words:Managerial ownership, Proportion Independent Commissioner , Earnings Quality

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

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 SISTEMATIK RISK, PERSISTENSI LABA TERHADAP EARNINGS RESPONSE COEFFICIENT PADA ENTITAS INDUSTRI

2018 ◽  
Vol 7 (2) ◽  
pp. 1
Author(s):  
Lalu Takdir Jumaidi ◽  
Rijal Rijal
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Earnings Persistence ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Economic Decision Making ◽  
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, 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. 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.           Para Investor dalam pengambilan keputusan investasinya, menggunakan informasi laporan keuangan. Laba biasanya menjadi pertimbangan utama  investor. Namun kenaikan laba tidak selalu diikuti dengan perubahan harga saham yang positif. Hal tersebut menunjukkan, dalam pengambilan keputusan ekonomi, para investor membutuhkan informasi tentang kondisi keuangan perusahaan tidak hanya informasi laba saja, tetapi banyak informasi lainnya. Untuk itu digunakanlah alat yang berguna untuk memprediksi naik turunnya harga saham, yaitu earnings response coefficient yang menunjukkan kuat lemahnya reaksi pasar terhadap informasi laba yang dipublikasikan. Jika investor memiliki persepsi bahwa kandungan informasi laba yang diumumkan berkualitas, maka investor akan bereaksi positif terhadap perngumuman laba perusahaan tersebut. Penelitian ini mengkaji earnings response coefficient dengan menggunakan variabel bebas seperti risiko sistematik dan persistensi laba. Adapun tujuan dari penelitian ini untuk menguji pengaruh risiko sistematik, dan persistensi laba terhadap earnings response coefficient pada perusahaan manufaktur yang terdaftar di BEI. Penelitian ini adalah penelitian kuantitatif. Populasi penelitian ini adalah seluruh perusahaan manufaktur yang terdaftar di BEI tahun 2015. Dengan menerapkan purposive sampling diperoleh 56 perusahaan sebagai sampel. Jenis data yang digunakan adalah data sekunder yang diperoleh dari www.idx.co.id. Metode analisis yang digunakan adalah analisis regresi berganda. Hasil penelitian ini menunjukkan bahwa risiko sistematik dan persistensi laba tidak berpengaruh terhadap earnings response coefficient.Keywords : systematic risk, earnings persistence, 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 RESPON INVESTOR ATAS SINYAL LABA, PELUANG BERTUMBUH, STRUKTUR MODAL, DAN UKURAN PERUSAHAAN PADA PERUSAHAAN MANUFAKTUR DI BEI PERIODE 2014-2018

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Jessica Jessica ◽  
Ari Hadi Prasetyo
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Earnings Persistence ◽  
Company Size ◽  
Manufacturing Companies ◽  
Growth Opportunities ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

This study aims to examine the financial performance of public companies viewed from the effects of earnings persistence, growth opportunities, profitability, capital structure, and company size that affect market response to earnings information measured using earnings response coefficient (ERC). From the perspective of the Signaling theory, management releases information related to the company's performance for investors regarding the company's actual fundamental condition. Companies that have a competitive advantage and good financial performance, have the potential to generate high profits because the company able to manage its resources in the perspective of Resources Based Theory, but in the context of Agency Theory the agent's relationship with the principal, causes agency problems due to differences in interests caused agency conflict. This study uses a sample of 31 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. Based on the results of the regression analysis, it can be concluded that there are enough dependent variables together that significantly influence the earnings response coefficient. The results of this study indicate enough evidence is found that earnings persistence has a positive effect on ERC. Also, growth opportunities influence ERC and give a negative direction. While the capital structure, profitability, and size of the company were not found enough evidence of influence on ERC.Keywords: earnings persistence, growth opportunities, capital structure, profitability, company size, and earnings response coefficient.

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