Earning response coefficient: the Indonesia stock exchange case / Ambarwati and Eka Sudarmaji

-, Ambarwati and -, Eka Sudarmaji (2020) Earning response coefficient: the Indonesia stock exchange case / Ambarwati and Eka Sudarmaji. Insight Journal : International, Refereed, Open Access, Online Journal, 6 (21). pp. 208-225. ISSN 2600-8564

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 : International, Refereed, Open Access, Online Journal
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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