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The Effect of Earnings Management and Earnings Persistence on Earnings Response Coefficient: Evidence from Indonesia

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  • Suwarno

Abstract

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.

Suggested Citation

  • Suwarno, 2019. "The Effect of Earnings Management and Earnings Persistence on Earnings Response Coefficient: Evidence from Indonesia," Journal of Social Science Studies, Macrothink Institute, vol. 6(1), pages 59-67, January.
    • Handle: RePEc:mth:jsss88:v:6:y:2019:i:1:p:59-67
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    6. Minna Martikainen, 1997. "Accounting Losses and Earnings Response Coefficients: The Impact of Leverage and Growth Opportunities," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(2), pages 277-292.
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