Open AccessFactors Affecting Earning Response Coefficient at LQ-45 Company in Indonesia Stock Exchange
Author(s) -
Indrayati Indrayati,
Basuki Rahmat,
Slamet Slamet
Publication year - 2020
Publication title -
xi'nan jiaotong daxue xuebao
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 21
ISSN - 0258-2724
DOI - 10.35741/issn.0258-2724.55.5.29
Subject(s) - stock exchange , earnings response coefficient , earnings per share , business , corporate governance , dividend payout ratio , post earnings announcement drift , earnings , audit committee , price–earnings ratio , earnings management , monetary economics , accounting , economics , dividend policy , finance
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.