Research Paper
Year: 2022 | Month: December | Volume: 9 | Issue: 12 | Pages: 159-171
DOI: https://doi.org/10.52403/ijrr.20221217
Factors Affecting Earning Response Coefficient with Profitability as A Moderating Variable in Mining Companies Listed on The Indonesia Stock Exchange for the 2018-2020 Period
Syarifuddin HZ Nasution1, Azhar Maksum2, Parapat Gultom3
1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia
Corresponding Author: Syarifuddin HZ Nasution
ABSTRACT
This study aims to determine the effect of capital structure, firm size, earnings persistence, and growth opportunities on the earnings response coefficient with profitability as a moderating variable in mining companies listed on the Indonesia Stock Exchange for the 2018-2020 period. The population used in this study was 52 mining companies listed on the Indonesia Stock Exchange. The sampling method is to use purposive sampling. Based on the criteria that have been made, the number of samples is 37 companies, so a total of 111 research observations are obtained. Data processing was carried out using the EViews statistical program.
The results of this study indicate that: (1) capital structure has a negative and significant effect on the earnings response coefficient, (2) firm size has a positive and significant effect on the earnings response coefficient, (3) earnings persistence has a positive and significant effect on the earnings response coefficient, (4 ) growth opportunities have a positive and significant effect on the earning response coefficient, (5) profitability can moderate the effect of capital structure, firm size, and growth opportunities on the earning response coefficient, (6) profitability is not able to moderate the effect of earnings persistence on the earning response coefficient.
Keywords: Capital Structure, Firm Size, Profit Persistence, Growth Opportunities, Profitability, Earning Response Coefficient.
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