Earnings Persistence Research Articles

The persistence of tax avoidance and its effect on the persistence of earnings

The persistence of tax avoidance and its effect on the persistence of earnings

ANALISIS PERSISTENSI LABA PERSPEKTIF ARUS KAS OPERASI DAN TINGKAT HUTANG PADA PERUSAHAAN SEKTOR KEUANGAN DI INDONESIA

Various ways are used to increase profits, because the company realizes that there are many things that can be done with profits, including the existence of the business in the future. Several financial instruments, which are considered to determine the persistence of earnings are operating cash flows and debt levels. The two instruments describe the current and future earnings conditions, so they need to be taken seriously. Therefore, this research was conducted, to try to estimate the possibility of increasing earnings persistence based on cash flow and debt instruments. In carrying out scientific evidence, this research determines quantitative as the fundamental analysis, using the causal method, so that the estimated value is obtained. The research data is secondary, obtained from the financial statements of 17 financial sub-sector companies listed on the Indonesian stock exchange. The financial report data used were 102 (2015-2020 period), based on the determination of a number of criteria (purposive), then analyzed using panel data regression statistics. The results showed that earnings persistence would increase maximally in the simultaneous model, amounting to 27.61%. This means that optimizing operating cash flow and controlling debt are options for companies to increase earnings persistence, which in turn can increase the value of the company in the future.

Promotional Pricing, Earnings Persistence, and Market Outcomes: Do Analysts and Investors 'Discount' Performance Backed by Coupons?

Promotional Pricing, Earnings Persistence, and Market Outcomes: Do Analysts and Investors 'Discount' Performance Backed by Coupons?

Intergenerational Earnings Persistence and the Provision of Public Goods: Evidence from Chile’s Constitutional Process

Intergenerational Earnings Persistence and the Provision of Public Goods: Evidence from Chile’s Constitutional Process

Effect on the Form and Volume of CSR Disclosure on Earnings Persistence of Public Enterprises

[연구목적] 본 연구는 공익성과 사회공헌성의 성격이 강한 공기업의 CSR공시가 공기업의 이익지속성에 미치는 영향을 살펴보기 위해, CSR공시 여부 및 CSR공시 형태, CSR공시량(양적수준 및 빈도)에 따라 이익지속성에 미치는 영향을 분석하였다. [연구방법] CSR공시 여부는 CSR정보 공시를 최소한 한 가지 형태 이상의 공시를 하는 경우, CSR공시 형태는 CSR보고서 발간과 CSR게시판 게시물 게재를 이용하였고, CSR공시량은 연간 CSR보고서 페이지 수, 연간 CSR게시판 게시물 게재 빈도 수를 이용하여 당기의 이익과 곱하여 Sloan(1996)의 연구모형을 이용해 CSR공시여부와 CSR공시 형태 및 공시량이 차기 년도의 이익지속성에 미치는 영향을 살펴보았다. [연구결과] 공기업의 CSR공시는 이익지속성에 유의한 양(+)의 영향을 미치는 것으로 나타났으며, 이러한 영향은 CSR공시의 형태에 따라 다르게 나타났는데, CSR보고서 발간 형태의 공시가 공기업의 이익지속성에 유의한 영향을 미치지 못하는 반면, CSR게시판 게시물 게재는 이익지속성에는 유의한 양(+) 영향을 미치는 것으로 나타났다. 또한, CSR보고서 발간 페이지수로 측정한 CSR공시의 양적 수준은 이익지속성에 영향이 미미하였지만, CSR게시판 게시물게재 빈도 수로 측정한 CSR공시의 빈도 수준은 이익지속성에 유의한 양(+)의 효과가 나타났다. [연구의 시사점] 공기업의 CSR공시는 궁극적으로 기업의 이익지속성을 높이며, 이러한 높은 이익지속성은 CSR공시의 형태에 따라 다르게 나타남을 보여준다. 또한, CSR공시 형태에 따라 CSR공시량의 증가가 이익지속성을 높이는데 차별적인 영향을 미치는 것을 알 수 있다. 공기업의 CSR공시 형태에 따라 이익지속성에 차별적인 영향이 나타나는 것은 CSR게시판 게시물 게재 공시의 CSR본연의 강한 공익적이고 사회공헌적 성격에 기인한 것으로 보인다.

Analisis Faktor Penentu Terjadinya Persistensi Laba pada Perusahaan Manufaktur di BEI

This study aims to analyze the factors that determine Earning Persistence. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2019 period. The sampling method used in this study is a purposive sampling method where according to the established criteria, 53 companies are obtained and the data used is secondary data. The analytical technique used in this study is multiple linear regression analysis using the Statistical Product and Service Solutions (SPSS) v.20.0 program. The results showed that Audit Fee and Cash Flow Volatility had a positive and significant effect on Earnings Persistence, Sales Volatility had a negative and significant effect on Earnings Persistence, Debt Level and Operating Cycle had no effect on Earning Persistence.

DETERMINAN PERSISTENSI LABA PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

The purpose of this study is to analyze the effect of cash flow volatility, sales volatility, debt level and firm size on earnings persistence. The population of this study are manufacturing companies listed at Indonesia Stock Exchange for the 2017-2020 period. The sampling method used in this research is purposive sampling technique. The number of sample were 34 companies. The analysis technique used in this research is panel data regression with EViews 9 software. The results of the study using the random effects model show that cash flow volatility and sales volatility have no significant effect on earnings persistence. The level of debt has a significant negative effect on earnings persistence, while firm size has a significant positive effect on earnings persistence.

ASPEK STRUKTUR KEPEMILIKAN PADA NILAI PERUSAHAAN : PERAN MEDIASI KUALITAS LABA

The goal of this research is to find evidence that managerial and institutional ownership affect earnings quality, and that earnings quality mediates the effect of managerial and institutional ownership on firm value. Firm value is measured using Tobin's Q, earnings quality uses earnings persistence, managerial ownership uses INSDR and institutional ownership uses the percentage of share ownership divided by the company's total shares. This research was conducted on manufacturing companies from 2013 to 2017 and the sample used was 48 companies with a total of 240 observations. Path analysis was the analytical method used in this study. From these tests it is known that managerial ownership has a negative effect on earnings quality; institutional ownership has a positive effect on earnings quality; managerial ownership has no effect on firm value, institutional ownership has no effect on firm value. Earnings quality is not able to mediate the effect of managerial ownership on firm value, and conversely earnings quality is able to mediate the effect of institutional ownership on firm value

Faktor-Faktor yang Mempengaruhi Persistensi Laba (Studi Kasus Pada Perusahaan Perbankan dan Jasa Keuangan yang Terdaftar di Bursa Efek Indonesia)

This study aims to examine the factors that influence earnings persistence on banking and financial service companies listed on the Indonesia Stock Exchange (IDX) period 2014-2018. This research uses quantitative methods with purposive sampling. There are 33 sample companies with a total of 165 observations. Data analysis in this study uses the classic assumption test and hypothesis testing using multiple linear regression methods. The results showed that temporary differences had a positive and significant effect on earnings persistence. Permanent differences have a negative and significant effect on earnings persistence. Operating cash flow has a positive and significant effect on earnings persistence. While the independent variable is able to explain the dependent variable 54.7%, while the rest is explained by other variables outside this research variable

The effects of state ownership and tax rate cuts on accounting conservatism: evidence from Vietnam

PurposeThe purpose of this paper is to examine the joint effects of state ownership and tax rate cuts on accounting conservatism, considering the different levels of foreign ownership in the context of Vietnam.Design/methodology/approachThe paper uses ordinary least squares regressions and a data set of 405 firms covering the period 2007 to 2019. The manuscript uses three measures of accounting conservatism: Basu’s 1997 timeliness of earnings, Basu’s 1997 earnings persistence and the book-to-market ratio.FindingsState-owned enterprises (SOEs) adopt less accounting conservatism than non-SOEs; however, the result is only robust in firms with foreign ownership being lower than the foreign ownership median. Firms increase accounting conservatism in the year immediately prior to the year that the tax rate cuts become effective. An SOE possesses an unusual conflict both as a taxpayer and in having its controlling interest held by the government, which is both a tax creator and a tax collector. Interestingly, the increase in accounting conservatism prior to the year of the tax rate cuts is more pronounced for non-SOEs than SOEs.Practical implicationsThis research is beneficial to investors and policymakers where the government is both the taxpayer and tax collector and in emerging markets where foreign investment is local firms’ important financing.Originality/valueTo the best knowledge, this study is the first in examining the joint effects of state control and tax rate cuts on accounting conservatism.

Pengaruh Akrual, Arus Kas Operasi, Leverage, Dan Ukuran Perusahaan Terhadap Persistensi Laba

The purpose of this research is to examine the effect of accruals, operating flow, leverage, and company size on earnings persistence of manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. The sample used in this research were 59 companies. The research used purposive sampling method and data processing techniques using multiple regression analysis what helped by the EViews program version 10. The results showed that the accrual variable has a negative and significant effect on earnings persistence, the operating cash flow variable has a negative and insignificant towards earnings persistence, the leverage variable has a negative and insignificant effect on earnings earnings persistence, and firm size variable has a negative and significant effect on earnings persistence.

Pengaruh Profitability, Firm Size, Dan Earnings Persistence Terhadap Earnings Response Coefficient

The purpose of this research is obtain empirical evidence about effect of profitability, firm size, dan earnings persistence on earnings response coefficient in manufacturing companies listed on Indonesia Stock Exchange (IDX) for the 2017-2019 period. This research used 69 samples and 207 data from manufacturing companies selected by purposive sampling method. The data in this research were inputted and calculated using the Microsoft Excel program and process using the Eviews 11 program. The result of this research indicated that earnings persistence has a positive and significant effect on earnings response coefficient while profitability and firm size have no significant effect on earnings response coefficient. The implication of this study is persistence profit will make investors more interested in investing.

THE EFFECT OF LEVERAGE, FIRM SIZE, EARNING GROWTH, AND EARNING PERSISTENCE ON EARNING RESPONSE COEFFICIENT

This study aims to investigate the effect of leverage, firm size, earnings growth, and earning persistence on earnings response coefficient. The population used in this study are all manufacturing companies listed in Indonesia Stock Exchange from 2015 until 2019 and had positive earnings before tax. Consequently, the samples in this research are 68 manufacturing companies so that the observations are 340. For examining data, this research uses a panel data regression model. After running the chow test and Lagrange multiplier test, the most suitable method for the regression model is the common effect model. This research shows that leverage and firm size do not influence earning response coefficient. Meanwhile, earnings growth and earnings persistence have a positive effect on the earnings response coefficient.
 Keywords: Earning growth; earning persistence; earning response coefficient; firm size; leverage

PENGARUH ARUS KAS OPERASI, SIKLUS OPERASI, EFEKTIFITAS DEWAN KOMISARIS, DAN EFEKTIFITAS KOMITE AUDIT TERHADAP PERSISTENSI LABA (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2018)

Purpose : This study aims to give empirical evidence on the operating cash flow, operasting cycle, effectiveness of the board of commissioners and effectiveness of audit committee on earnings persistance. The sample used in the study was manufacture companies listed on the Indonesia Stock Exchange in 2014-2018 with a total sample of 400 observations.Research methodology : This study was tested using multiple regression analysis with the SPSS version 24 program. The sample used in this study was a manufacturing company listed on the Indonesia Stock Exchange in 2014-2018. The sample in this study was selected using the purposive sampling method with a total sample of 400 observations.Result : The results of the study indicate that operating cash flow and the effectiveness of the board of commissioners have a positive effect on earnings persistence, but for operating cycle variables and audit committee effectiveness have no effect on earnings persistence.Limitations : The limitation of this research is that some of the sample companies' financial and annual reports cannot be accessed, so that in terms of the number of samples, the number of samples is reduced and the results of the research may be less than optimal.Contribution : The implication of this research is to provide theoretical information about agency theory in which there is an agency conflict that can cause a decrease in earnings persistence so that monitoring costs are needed to minimize agency conflict. For manufacturing companies and for further research, this research is expected to provide additional information and understanding of what can encourage an increase in earnings persistence.

Managerial ability, earnings quality and ISIS: evidence from Iraq

PurposeThis study investigates the association between managerial ability and earnings quality in firms listed on the Iraq Stock Exchange and how the emergence of the Islamic State of Iraq and Syria (ISIS) influences the association.Design/methodology/approachThis study uses a sample of firms listed on the Iraq Stock Exchange over the period 2012–2018. Managerial ability is quantified using data envelopment analysis, and earnings quality is measured by earnings restatement, earnings persistence, accruals quality and earnings response coefficient. Panel regression analysis is used to examine the research hypotheses.FindingsThe findings indicate that managerial ability positively affects earnings quality of Iraqi firms and that ISIS weakens the relationship between managerial ability and earnings quality. These findings are robust to the alternative measures of managerial ability, as well as to various approaches used to address endogeneity including propensity-score matching and a difference-in-differences analysis.Originality/valueThis study provides insight into the impact of managerial ability on earnings quality in an under-studied emerging market. Furthermore, this study broadens the existing literature about the financial consequences of a modern terrorist group, ISIS.

Impact of Leverage and Firm Size on Earnings Persistence with Managerial Ownership as Moderating Variables

This study aims to examine and analyze the effect of leverage and firm size on earnings persistence with managerial ownership as a moderating variable. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange in 2016-2019. The sample selection method used purposive sampling criteria, while the data analysis methods used in this study were multiple regression analysis and moderated regression analysis. Before analysing the data, first perform the classical assumption test, after the data is declared to meet the test criteria, then a hypothesis test is carried out consisting of multiple regression analysis, coefficient of determination test (R-squares), simultaneous significance test (F-test), significance test partial test (t-test) and moderated regression analysis (MRA). The results showed that leverage had a positive effect on earnings persistence, and firm size had no effect on earnings persistence, while managerial ownership was unable to moderate the effect of leverage and firm size on earnings persistence.

감사위원회의 전문성이 회계 정보성에 미치는 영향

본 연구는 감사위원회의 회계·재무 전문성과 전문성의 세부 유형이 회계정보의 정보성(informativeness)에 미치는 영향을 분석한다. 미래 이익이 현재 주가에 반영되는 정도인 미래이익반응계수(future earnings response coefficient, FERC)를 회계 정보성의 측정치로 이용하여 실증분석을 수행한 결과, 감사위원 중 회계·재무 전문가의 비율이 증가할수록 FERC가 높게 나타났다. 즉, 감사위원회의 회계·재무 전문성은 회계 정보성에 긍정적인 영향을 미친다는 결과이다. 회계·재무 전문성의 세부 유형을 상법에서 정의하고 있는 바와 같이 네 가지 유형으로 분석한 결과, 공인회계사 출신 감사위원(①유형)과 금융회사·정부기관 등에서 회계·재무 분야 업무 또는 감독 분야에 근무한 감사위원(④유형)이 회계정보성에 긍정적인 영향을 미치는 것으로 나타났다. 또한, 다른 형태의 전문성을 가진 감사위원들 간의 상호 보완적인 역할이 회계 정보성에 영향을 미친다는 결과를 발견하였는데, 이는 감사위원회 세부 유형의 구성형태(mix)에 따라 회계 정보성에 미치는 영향이 다르다고 해석할 수 있다. 이익의 지속성(earnings persistence)을 이용하여 회계 정보성을 측정하여 분석한 결과도 FERC 모형을 이용한 결과와 대체로 비슷하였다. 본 연구는 감사위원회의 회계·재무 전문성과 그 세부 유형이 회계 정보성에 미치는 영향을 종합적으로 연구함으로써 관련 연구와 실무에 공헌한다.

Earnings Quality: Impact of Income Smoothing, Earnings Persistence, Book Tax Difference with Good Corporate Governance as Moderation

This study has a purpose to determine the effect of Income Smoothing, Earnings Persistence, Book Tax Difference on Earnings Quality and moderating effect of Good Corporate Governance. Using 98 sample data from manufacturing entities on the Indonesia Stock Exchange in 2015-2020, a negative effect of earnings persistence on earnings quality, and a positive effect of differential book tax on earnings quality found in this study, while income smoothing does not. In addition, it was found that good corporate governance by institutional ownership as a proxy strengthens the effect of income smoothing on earnings quality and weakens the effect of book-tax differences on earnings quality. This finding can be used by investors in assessing the quality of earnings from financial information issued by issuers so that future earnings prediction analysis can be measured properly so that the desired return target is achieved.

Effect of Debt Level, Operating Cash Flow, Sales Volatility and Managerial Ownership on Earning Persistence

This study aims to examine the variables of debt level, operating cash flow, sales volatility and managerial ownership on earnings persistence in Property & Real Estate Sector Companies listed on the Indonesia Stock Exchange in 2017-2020. The research method used in this study is the method quantitative research. The sample was taken using a purposive sampling technique where the population was 63 companies and a sample that met the specified criteria was 11 companies listed on the Indonesia Stock Exchange in 2017-2020. The statistical analysis used in this study was multiple linear regression analysis. The results of this study indicate that debt level has no significant effect on earnings persistence in Property & Real Estate Sector Companies on the Indonesia Stock Exchange in 2017-2020. Operating cash flow has a positive and significant effect on earnings persistence in Property & Real Estate Sector Companies on the Indonesia Stock Exchange in 2017-2020. Sales volatility has a negative and significant effect on earnings persistence in Property & Real Estate Sector Companies on the Indonesia Stock Exchange in 2017-2020. Managerial ownership has no significant effect on earnings persistence in Property & Real Estate Sector Companies on the Indonesia Stock Exchange in 2017-2020. Keywords: Debt Level, Operating Cash Flow, Sales Volatility, Managerial Ownership, Earnings Persistence.

Factors affecting earnings persistence: Research in emerging markets

The paper examines the influence of business characteristics on earnings persistence in Vietnam because earnings persistence is also one of the earnings quality assessment factors that attract the attention of investors and financial analysts. The study used regression methods of OLS, REM, FEM, and GLS, and research data at enterprises listed on the stock market in Vietnam from 2010 to 2018, with 3677 observations. The results have identified factors such as firm size, revenue growth rate, accruals and dividend policy that positively affect earnings persistence while the financial structure has the opposite effect on the persistence of earnings. Besides, the liquidity only has an unclear influence on the persistence of earnings. The results of this study help businesses identify, improve earnings persistence and transparency of financial statements, accurately reflect business reality, and build the trust of shareholders.