Abstract
This research examines the effect of profitability, systematic risk, leverage and earnings persistence on Earnings Response Coefficient (ERC) in companies listed in LQ45 at Indonesia Stock Exchange (IDX). The objects of this research are companies that are consistently listed in LQ45 in the year of 2015-2017. This study uses panel data regression analysis using the software, Eviews. The empirical results of this research showed that systematic risk and earnings persistence has a significantly negative effect on ERC, leverage has a significantly positive effect on ERC, while profitability does not have an effect on
ERC. The results of the research show that the factors of systematic risk, leverage and earnings persistence owned by the company have an effect on investment decisions made by investors.
Metadata
| Item Type: | Book Section |
|---|---|
| Creators: | Creators Email / ID Num. -, Ambarwati, UNSPECIFIED Sudarmaji, Eka UNSPECIFIED |
| Contributors: | Contribution Name Email / ID Num. Patron Kassim, Mohd Azraai UNSPECIFIED Patron Joyosumarto, Subarjo UNSPECIFIED |
| Subjects: | H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock exchanges. Insider trading in securities |
| Divisions: | Universiti Teknologi MARA, Johor > Segamat Campus |
| Series Name: | Secretariat of IABC 2019 |
| Volume: | 6th |
| Page Range: | p. 88 |
| Keywords: | CAPM; Earnings Response Coefficient; Systematic Risk; UiTM Cawangan Johor |
| Date: | 2019 |
| URI: | https://ir.uitm.edu.my/id/eprint/38676 |
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