The Association between Analysts' Earnings Forecast Dispersion and the Magnitude of Earnings Response Coefficient: “Noise” or “Uncertainty”?

2006 ◽  
Vol 2 (2) ◽  
pp. 190-207 ◽  
Author(s):  
Jong-Hag Choi ◽  
Tony Kang ◽  
Yong Keun Yoo
Keyword(s):  
Earnings Forecast ◽  
Forecast Dispersion ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

PENGARUH KONSERVATISMA AKUNTANSI TERHADAP EARNINGS RESPONSE COEFFICIENT (ERC) DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI

2008 ◽  
Author(s):  
Olliza Mayesti ◽  
Resti Yulistia Muslim
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Negative Influence ◽  
Accounting Conservatism ◽  
Managerial Ownership ◽  
Net Income ◽  
Manufacturing Companies ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

The objective of this study is to examine whether corporate governance influence the relation between accounting conservatism and Earnings Response Coefficient (ERC). The accounting conservatism proxy used in this research is accruals obtained from differences between net income and cash flow. Sample consists of 31 manufacturing companies that listed in Indonesian Stock Exchange since 2003­2006. Hypotheses are examined by using multiple regressions. The result shows that there is a negative influence of accounting conservatism to Earnings Response Coefficient. Managerial ownership as a moderating variable did not affect the relation between accounting conservatism and Earnings Response Coefficient, but independent board of commissioner composition as a moderating variable affected the relation between accounting conservatism and Earnings Response Coefficient.

PENGARUH EARNINGS MANAGEMENT TERHADAP EARNINGS QUALITY

2010 ◽  
Author(s):  
Pupun Tri Wahyuni ◽  
Resti Yulistia Muslim
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Manufacturing Companies ◽  
Financial Report ◽  
Earnings Response Coefficient ◽  
Discretionary Accrual ◽  
Response Coefficient ◽  
Earnings Response

This research objective is to axamine empirically the influence of earnings management on earnings quality. The study motivated by the controversy of previous study about earnings management and earnings quality. Earnings management was measured by Discretionary Accrual and earnings quality was measured by Earnings Response Coefficient (ERC). The units were 128 (16x8) Quartal financial report in manufacturing companies listed in the Jakarta Stock Exchange, started from the year 2005 up to 2006. The data was collected using purposive sampling method. Statistical method used to test the hypotheses was multiple regressions. The result of the research showed that: the influence of earnings management on earnings quality was negative, sig 0.049. It means that the lower earnings management will be followed by higher earnings quality. This study supported the result of Fetham and Pae (2000), Nelson et al. (2000), Scott (2000), Lobo and Zhou (2001), also Teixeira (2002), Pudjiastuti (2006). 

scholarly journals Pengaruh Opini Audit Terhadap Earnings Response Coefficient

2011 ◽  
Vol 3 (2) ◽  
pp. 64-83
Author(s):  
Maria Stefani Osesoga ◽  
Jimmy Ardianto
Keyword(s):  
Investment Decision ◽  
Annual Reports ◽  
Normal Probability Plot ◽  
Audit Opinion ◽  
Earnings Response Coefficient ◽  
Earnings Information ◽  
Normality Test ◽  
Response Coefficient ◽  
Normal Probability ◽  
Earnings Response

The users of financial statements require quality and relevant earnings information to be used in decision-making process. The purpose of this study is to determine the significant effect of audit opinion information that contained in the companies' annual report against the quality and relevance earnings information, which measured by Earning Response Coefficient or ERC. This research used control variables, which are beta, leverage, and PBV. The tests conducted in this study were normality test using normal probability plot, the autocorrelation test using Durbin-Watson, multicollinearity test using the value of tolerance and VIF, and heteroscedasticity test using the scatter plot graphic. The hypotheses were tested by using multiple regressions.  The results of the study showed that PBV had significant impact on ERC, and indicated that investors had not appreciated the audit opinion information disclosed by the companies in their annual reports for their investment decision. Keywords: Audit Opinion, Beta, Earnings Response Coefficient, Leverage, Price to Book Value.

The influence of some factors about the earnings response coefficient (ERC) from the perspective earnings management (GR)

2018 ◽  
Vol 16 (2) ◽  
Author(s):  
Nathan Vasconcellos de A. R. Machado ◽  
Valéria Gama Fully Bressan ◽  
Wagner Moura Lamounier ◽  
Luís Carlos Barbosa dos Santos
Keyword(s):  
Earnings Management ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

scholarly journals Is the Decline in the Information Content of Earnings Following Restatements Short-Lived?

2013 ◽  
Vol 89 (1) ◽  
pp. 177-207 ◽  
Author(s):  
Xia Chen ◽  
Qiang Cheng ◽  
Alvis K. Lo
Keyword(s):  
Information Content ◽  
Data Availability ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Long Run ◽  
Earnings Response

ABSTRACT Prior research finds that the decline in the information content of earnings after restatement announcements is short-lived and the earnings response coefficient (ERC) bounces back after three quarters. We re-examine this issue using a more recent and comprehensive sample of restatements. We find that material restatement firms experience a significant decrease in the ERC over a prolonged period—close to three years after restatement announcements. In contrast, other restatement firms experience a decline in the ERC for only one quarter. We further find that among material restatement firms, those that are subject to more credibility concerns and those that do not take prompt actions to improve reporting credibility experience a longer drop in the ERC. Last, reconciling with prior research, we find that using a more powerful proxy for material restatements and imposing less restrictive sampling requirements help to increase the power of the tests to detect the long-run drop in the ERC. Data Availability: The data are available from the sources indicated in the text.

scholarly journals Pengaruh Kinerja Keuangan Bank Terhadap Koefisien Respon Laba Melalui Investment Opportunity Set (Studi Kasus pada Bank Umum yang Terdaftar di Bursa Efek Indonesia Periode Tahun 2011-2016)

2020 ◽  
Vol 5 (1) ◽  
pp. 27
Author(s):  
Atti Rasnawati
Keyword(s):  
Financial Performance ◽  
Investment Opportunity ◽  
Earnings Response Coefficient ◽  
Economic Decisions ◽  
Good Corporate Governance ◽  
Response Coefficient ◽  
Investment Opportunity Set ◽  
Earnings Response ◽  
Measure Of Performance

This research raises the issue of banking performance including Risk Profile, Good Corporate Governance, Earning and Capital (RBBR or RGEC). Profit achieved by a company is a measure of performance and is considered by investors or creditors in making decisions to make investments or to provide additional credit. The low quality of earnings will make the decision making mistakes of the users such as investors and creditors, so that the value of the company will decrease. Earnings quality will be measured by using earnings response coefficient. Low The earnings response coefficient shows that earnings are less informative or in other words less qualified for investors to make economic decisions. The purpose of this study was to examine and determine the EFFECT of the Bank's Financial Performance on the Coefficient of Earnings Response through the Investment Opportunity Set. The analysis tools used include CAR, NPL, LDR, NIM, and GCG for bank financial performance. Then MBVE for investment opportunity set and for KRL using CAR, EU and RT. The results of this study indicate that the bank's financial performance has a positive and insignificant effect on the earnings response coefficient and earnings response coefficient can be explained by the bank's financial performance of 28.5% and the remaining 71.5% is explained by other variables outside the financial performance of the bank under study. Then the bank's financial performance has a negative and significant effect on the investment opportunity set and the earnings response coefficient can be explained by the bank's financial performance of 10.1% and the remaining 89.9% is explained by other variables outside the financial performance of the bank under study. Furthermore, the investment opportunity set has a positive and significant effect on the earnings response coefficient and the earnings response coefficient can be explained by an investment opportunity set of 26.4% and the remaining 73.6% is explained by other variables outside the financial performance of the bank under study.

scholarly journals PENGARUH UKURAN PERUSAHAAN, LEVERAGE, RISIKO SISTEMATIK, DAN INVESTMENT OPPORTUNITY SET TERHADAP EARNINGS RESPONSE COEFFICIENT PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PADA TAHUN 2012-2014

2018 ◽  
Vol 20 (3) ◽  
pp. 463
Author(s):  
Ivan Kurnia, Sufiyati
Keyword(s):  
Firm Size ◽  
Sampling Method ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Manufacturing Companies ◽  
Investment Opportunity ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Investment Opportunity Set ◽  
Earnings Response

The purpose of this research is to gain empirical evidence about the influence of firm size, leverage, systematic risk, and investment opportunity set on earnings response coefficient on manufacturing companies listed in Indonesia Stock Exchange for 2012-2014. Samples selected by using purposive sampling method. This research used a sample of one hundred fourty one manufacturing companies. The result of this research indicate that only systematic risk have an influence on earnings response coefficient while firm size, leverage, and investment opportunity set has not an influence on earnings response coefficient. For a better results, further research may add another variable that influence on earnings response coefficient.

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