Abstract
This research examines the effects of profitability, systematic risk, leverage and earnings persistence on Earnings Response Coefficient (ERC) in companies listed in LQ45 at the 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: | Article |
|---|---|
| Creators: | Creators Email / ID Num. -, Ambarwati UNSPECIFIED -, Eka Sudarmaji UNSPECIFIED |
| Contributors: | Contribution Name Email / ID Num. Chief Editor Zainon, Assoc. Prof. Dr. Saunah UNSPECIFIED Editor Ismail, Dr. Noriah UNSPECIFIED Editor Raja Ahmad, Assoc. Prof. Dr. Raja Adzrin UNSPECIFIED Editor Soo, Assoc. Prof. Dr. Carolyn Kum Yoke UNSPECIFIED Editor Kadri, Assoc. Prof. Dr. Mohd Halim UNSPECIFIED Editor Mohd Ariff Albakri, Assoc. Prof. Dr. Intan Safinas UNSPECIFIED Editor Shamsuddin, Assoc. Prof. Dr. Hj Amanuddin UNSPECIFIED Editor Zakaria, Assoc. Prof. Dr. Nor Balkish UNSPECIFIED Editor Khairani, Dr. Noor Sufiawati UNSPECIFIED Editor Othman, Dr. Akmal Aini UNSPECIFIED Editor Ismail, Dr. Norashikin UNSPECIFIED Editor Misman, Dr. Faridah Najuna UNSPECIFIED Editor Mat Kamal, Dr. Siti Nuur-Ila UNSPECIFIED |
| Subjects: | H Social Sciences > HG Finance > Investment, capital formation, speculation H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock exchanges. Insider trading in securities |
| Divisions: | Universiti Teknologi MARA, Johor > Segamat Campus |
| Journal or Publication Title: | Insight Journal (IJ) |
| UiTM Journal Collections: | UiTM Journal > INSIGHT Journal (IJ) |
| ISSN: | 2600-8564 |
| Volume: | 6 |
| Number: | 21 |
| Page Range: | pp. 208-225 |
| Related URLs: | |
| Keywords: | CAPM, Earnings Response Coefficient, Systematic Risk, UiTM Cawangan Johor |
| Date: | 2020 |
| URI: | https://ir.uitm.edu.my/id/eprint/43095 |
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