Open AccessThe Effect of Earnings Management and Earnings Persistence on Earnings Response Coefficient: Evidence from Indonesia
Author(s) -
Suwarno Suwarno
Publication year - 2018
Publication title -
journal of social science studies
Language(s) - English
Resource type - Journals
ISSN - 2329-9150
DOI - 10.5296/jsss.v6i1.13363
Subject(s) - earnings response coefficient , earnings , earnings management , stock exchange , post earnings announcement drift , price–earnings ratio , economics , sample (material) , earnings per share , demographic economics , accounting , finance , chemistry , chromatography
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.