EARNING RESPONCE ANALYSIS OF COMPANIES IN THE INDONESIA STOCK EXCHANGE REVIEWING FROM COMPANY SIZE AND INCOME SMOOTHING

Authors

  • Fitri Dwi Jayanti Universitas Ngudi Waluyo, Indonesia
  • Arda Raditya Tantra
  • Bambang Ahmad Indarto

DOI:

https://doi.org/10.29040/ijebar.v7i1.8044

Abstract

The capital market is a meeting place for investors as owners of funds with issuers as companies seeking funds. Issuers offer shares to investors to meet the company's funding needs. Varied stock prices provide investors with a choice to invest their capital. Investors seek profits by investing their funds in issuers, so that the issuers provide returns to investors. In making a decision to invest, an investor needs a financial report to find out information and be taken into consideration if investors want to invest. The financial report itself is a tool to obtain financial information and the performance of a company. The approach used in this research is a quantitative approach. The sampling technique used in this study is a non-probability technique. The test results show that size has no significant effect on earning response. This negative relationship is because the amount of information available throughout the year on large companies will cause investors to react less when the earnings announcements are announced. The test results for the income smoothing variable are known that the regression coefficient is positive at 2.242. The t-statistical test for the Income Management variable obtained the t-count value of 2.242, which is greater than the t-table value of 1.668. The significance value obtained is 0.029, which is smaller than the predetermined significance value of 0.05. This shows that income smoothing has an effect on the market reaction of the company.

References

Alwiyah, & Solihin, C. (2015). Pengaruh Income Smoothing terhadap Earning Response pada Perusahaan Manufaktur yang Listing Di BEI.

Atmaja, lukss setia. (2009). Statistika. Andi Offset.

Edwantiar, G. P. (2016). Reaksi Pasar Sebelum Dan Sesudah Penerapan Konvergensi PSAK Pada Perusahaan Di Bursa Efek Indonesia.

Fauzan, M., & Purwanto, A. (2017). Pengaruh Pengungkapan CSR, Timeliness, Profitabilitas, Pertumbuhan Perusahaan dan Resiko Sistematik Terhadap Earning Response Coefficient (ERC)(Studi Empiris Pada Perusahaan Manufaktur, Properti dan Pertambangan yang Terlisting di Bursa Efek Indonesia (BE. Diponegoro Journal Of Accounting, 6(1).

Herdirinandasari, Sherla Sherlia, and N. F. A. (2016). Pengaruh Ukuran Perusahaan, Profitabilitas, Dan Voluntary Disclousure Terhadap Earning Response Coefficient (ERC). Jurnal Ilmu Dan Riset Akuntansi (JIRA), 5(11).

Indriantoro, N. dan B. S. (1999). Metodologi Penelitian Bisnis Untuk Akuntansi dan Manajemen. BPFE UGM.

Kasmir. (2017). Analisis Laporan Keuangan (1st ed.). PT. Rajagrafindo Persada.

Sanjaya, W., & Suryadi, L. (2018). Faktor-Faktor Yang Mempengaruhi Income Smoothing Pada Perusahaan Manufaktur Periode 2014-2016. Jurnal Ekonomi, 23(3).

Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif dan R&B. Alfabeta.

Downloads

Additional Files

Published

2023-03-21

How to Cite

Jayanti, F. D., Tantra, A. R., & Indarto, B. A. (2023). EARNING RESPONCE ANALYSIS OF COMPANIES IN THE INDONESIA STOCK EXCHANGE REVIEWING FROM COMPANY SIZE AND INCOME SMOOTHING. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(1). https://doi.org/10.29040/ijebar.v7i1.8044

Issue

Vol. 7 No. 1 (2023): IJEBAR, VOL. 07 ISSUE 01, MARCH 2023

Section

Articles

Citation Check

License

Authors who publish with IJEBAR agree to the following terms: Authors retain copyright and grant the IJEBAR right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in IJEBAR. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in IJEBAR. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).