PENGARUH PROFITABILITAS, STRUKTUR MODAL DAN PERSISTENSI LABA TERHADAP EARNINGS RESPONSE COEFFICIENT (Studi Pada Perusahaan Pertambangan Yang Terdaftar di Bursa Efek Indonesia)

Abstract

This research aimed to examine the effect of profitability, capital structure, and profit persistence on the earnings response coefficient (ERC). ERC is a market reaction related to profit information which reflect on the profit quality which is published by the company. This research was quantitative. While, the sample collection technique used purposive sampling in which the criteria had been considered. Moreover, the sample was fifteen out of 47 mining companies which were listed on Indonesia Stock Exchange 2014-2017. However, there were three outlier data which taken from 60 observations. In consequence, there were 57 observations. In addition, the data analysis technique used multiple linear regression with Statistical Product and Service Solution (SPSS) version 23. The research result concluded, as follows, (1) profitability did not affect on earnings response coeffficient. This happened as profitability was not the basic of investment decision making; (2) capital structure had negative effect on earnings response coefficient. It meant, when a company had higher debt to equity, it had more debts than its capital; (3) profit persistence had positive effect on earnings response coefficient. In other words, when there was innovation on accountancy profit, shares price would likely to be increased.
Keywords: Profitability, Capital Structure, Profit Persistence, Earnings Response Coefficient