PENGARUH PERSISTENSI LABA, LEVERAGE, OPERATING CASH FLOW, DAN PERTUMBUHAN PERUSAHAAN TERHADAP EARNINGS RESPONSE COEFFICIENT

Abstract

This research aims to examine the effect of profit persistence, leverage, operating cash flow and firm growth on the earnings response coefficient. The research applies quantitatively. The population consists of manufacturing companies listed on the Indonesia Stock Exchange (IDX) 2021-2023. The data collection technique used purposive sampling 0f 44 companies with a total of 132 data. The data analysis technique used multiple linear regressions with the SPSS 25 version. The result shows that profit persistence has a negative effect on the earnings response coefficient because high-profit persistence makes it easier for investors to predict future profits. Therefore, new earnings information that is announced tends to be anticipated by investors. Leverage has a negative effect on the earnings response coefficient because the company is more concerned with paying its debts to creditors than paying dividends to investors. Operating cash flow does not affect the earnings response coefficient because even though a company can make money from its main activities, it does not necessarily indicate that the company has good performance and profit quality. Firm growth has a positive effect on the earnings response coefficient because higher growth gives a greater opportunity for the company to share a higher return to the investors.