PENGARUH STRUKTUR MODAL, PROFITABILITAS, RISIKO SISTEMATIS, DAN PERTUMBUHAN PERUSAHAAN TERHADAP EARNINGS RESPONSE COEFFICIENT

Abstract

This research aimed to examine the effect of capital structure, profitability, systematic risk, and firm growth on the earnings response coefficient. The research was quantitative. Moreover, the population was 21 Property and Real Estate companies which were listed on Indonesia Stock Exchange 2015-2018. Furthermore, the data collection technique used porposive sampling. In line with, there were 84 samples. In addition, the data analysis technique used multiple linear regression with SPSS 21. According to research result, it concluded as follow: (1) Capital structure did not affect the earnings response coefficient, since there was investor who knowledgeable of fundamental and technical analysis. (2) Profitability had positive effect on the earning response coefficient, as capital was effectively used to earn some profits. As consequence, investors were interested in doing investment whereas earnings response coefficient was increased. (3) Systematic risk did not affect the earning response coefficient. It happened as beta in research showed low risk, so that investors would consider other information. (4) Firm growth had negative effect on the earning response coefficient. This occured since company which had higher growth made budget of its profit for fixed asset investment. Consequently, the dividen’s payment as well as earning response coefficient became low.
Keywords: capital structure, profitability, systematic risk, firm growth, earnings response coefficient.