PENGARUH PERSISTENSI LABA, UKURAN PERUSAHAAN DAN LIKUIDITAS TERHADAP KUALITAS LABA

Abstract

This research aimed to examine the effect of earning’s persistency measured by regressions coefficient between the present periods of earning’a acoounting with the previous periods of eraning’s accounting while firm size measured by the log total asset, and liquidity measured by current ratio on the earning’s quality which measured by discretionary accruals with Modified Jones. This research used quantitative. Furthermore, the sample of this research used the purposive sampling method i.e. sample selection with determining criteria. Based on the purposive sampling method it obtained 120 samples from 24 manufacturing companies in consumer goods industry sectors listed in Indonesia Stock Exchange during 2015-2019. Moreover, the analysis method of this research used multiple linear regressions analysis with SPSS program 23 version. The result of this research showed that profit persistency had a negative effet on the earning’s quality, this meant that the more consistent of the company’s earnings, the less quality of the company’s earnings. Firm size had a positive effect on the earning’s quality, this meant that the larger firm size, the higher the company’s dicretionary accruals value. Liquidity had a negative effect on the earning’s quality, this meant the higher the quality (current ratio), the lower the porift quality.
Keywords: profit persistency, firm size, liquidity, profit quality