Sales Volatility, Operating Cash Flow Volatility, Debt, and Firm Size on Future Earnings Persistence

Abstract

This study aims to find out the impact of sales volatility, operating cash flow volatility, debt, and firm size on earnings persistence in agricultural sector companies listed on the Indonesia Stock Exchange for the period 2009-2022. The sample in this study is 14 companies using the purposive sampling method. This type of research is quantitative research. The analytical tool used was SPSS with multiple linear regression testing. The results of the tests carried out are that sales volatility has a negative and insignificant effect on future earnings persistence, conversely, the volatility of operating cash flows and debt has a positive but not significant impact on future earnings persistence, but firm size have positive effect on future earnings persistence in agricultural sector companies listed on the Indonesia Stock Exchange for the 2009-2022 period. Suggestions can be submitted to management to monitor the company's sales value so that there are no significant changes in a very short period of time, and avoid recording errors or manipulation of the company's sales value.