LEVERAGE, PERSISTENSI LABA DAN SISTEMATIK RISK, TERHADAP EARNINGS RESPONSE COEFFICIENT PADA ENTITAS INDUSTRI

Abstract

Investors use financial statement information in their investment decisions. Earnings is usually the main consideration of investors in making decision. However, the increase in earnings is not always followed by positive stock price changes. It shows that in economic decision-making the investors not only need information about the company's financial condition, i.e profit, but also other information. Therefore, investors need useful tool to predict the up or rise of stock price namely earnings response coefficient which shows market reaction on earnings information published by company. If the investor perceived the information content of the announced profits as good quality then the investors will react positively to earnings anouncement.Therefore purpose of this study is to examine the effect of systematic risk, leverage and earnings persistence on earnings response coefficient at manufacturing companies listed on the Stock Exchange. The population in this study are all manufacturing companies listed on the IDX in 2015. The sample of this study is determined by the method of purposive sampling and this study obtained 56 sample companies. The study usesecondary data which is obtained from www.idx.co.id. The results of this study based on multiple regression analysis indicate that systematic risk, leverage and profit persistence have no effect on earnings response coefficient.