THE EFFECT OF RISK, GROWTH, FIRM SIZE, CAPITAL STRUCTURE, AND EARNING PERSISTENCE ON EARNINGS RESPONSE COEFFICIENT
Zahroh Naimah; Arsiduiyana Talitha Rahma

Faculty of Economic and Bussines, Universitas Airlangga, Surabaya, Indonesia

Abstract

This study aims to obtain empirical evidence of the relationship of risk, growth, firm size, capital structure, and earnings persistence to earnings response coefficient. This research used datas of all manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2014 and 2015. Hypothesis testing in this research using multiple linear regression model. The results of this study found that the risk associated negatively and significant on earnings response coefficient, growth is associated negatively but not significant to earnings response coefficient, firm size associated negatively and significant to earnings response coefficient, capital structure associated positive but not significant to earnings response coefficient, and earnings persistence associated positively and significant to earnings response coefficient.

Keywords: risk, growth, firm size, capital structure, earning persistence, earnings response coefficient

Topic: Financial Management and Accounting