Open AccessImpact of Leverage and Firm Size on Earnings Persistence with Managerial Ownership as Moderating Variables
Author(s) -
Dade Nurdiniah,
Chita Oktapriana,
Iren Meita,
Milla Damay Yanti
Publication year - 2021
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2021.6.5.1080
Subject(s) - leverage (statistics) , econometrics , stock exchange , regression analysis , persistence (discontinuity) , variables , nonprobability sampling , population , earnings , chow test , economics , business , statistics , accounting , mathematics , demography , finance , engineering , sociology , geotechnical engineering
This study aims to examine and analyze the effect of leverage and firm size on earnings persistence with managerial ownership as a moderating variable. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange in 2016-2019. The sample selection method used purposive sampling criteria, while the data analysis methods used in this study were multiple regression analysis and moderated regression analysis. Before analysing the data, first perform the classical assumption test, after the data is declared to meet the test criteria, then a hypothesis test is carried out consisting of multiple regression analysis, coefficient of determination test (R-squares), simultaneous significance test (F-test), significance test partial test (t-test) and moderated regression analysis (MRA). The results showed that leverage had a positive effect on earnings persistence, and firm size had no effect on earnings persistence, while managerial ownership was unable to moderate the effect of leverage and firm size on earnings persistence.