PENGARUH KARAKTERISTIK PERUSAHAAN TERHADAP EARNINGS RESPONSE COEFFICIENT
Abstract: A good financial
reporting quality is reflected in a good quality of earnings. Earnings Response
Coefficient (ERC) measuring the power of relationships between accounting earnings
and the stock price or usually called earning quality measurement. This study examines the
effects of characteristic of
the Asian and
European firms on
ERC. The characteristics based
on four parameters:
earnings persistence, leverage,
firm size, and accruals
quality. This study
focus on Asian
and European multinational companies which cross-listed in
New York Stock Exchange (NYSE). They can be said that they
have the same
level with domestic
companies in United
States of America (USA), so that is a possibility of
their earning quality will be responded to the same by investor without
considering the characteristics of
their companies and
their state. This study
was conducted in
thirty six European
manufacturing companies and
fifty manufacturing companies cross-listed on the NYSE during the period
2008-2011. The data was collected by purposive sampling. Multiple linear
regression is used in testing the
data of this
study. This study
provided evidences that
earnings persistence, leverage, and
accruals quality were
positively affected the
ERC both in
Asian and European companies.
While the firm
size positively affected
the ERC in
Asian companies, but negatively
affected the ERC
in European companies.
The difference was due
to by the
effect of the
difference in quality
companies that be
responded differently by investors
in the capital
market for both
companies. This study
is expected to contributing positively investors for a better decision
making.
Keywords: accruals quality,
earnings persistence, earnings response coefficient, firm size, leverage
Penulis: Anggreni Dian
Kurniawati
Kode Jurnal: jpakuntansidd140769
