This research aims to analyze the impact of profit persistence, business risk, and the form of capital on the earning return coefficient. This research attempted to quote inferior information from the Indonesian Stock Exchange for the 2014-2020 period. The population in this research is the industrial zone listed on the Indonesian Stock Exchange throughout the 2016-2020 period. The research population is 56 industries. The sample collection method used was purposive sampling. The research sample consisted of 40 industries. The analysis used in this research uses multiple linear regression using SPSS. The research results prove that profit persistence and business risk have no effect on ERC, on the contrary, DER has an effect on ERC. The GCG variable weakens the relationship between profit persistence and business risk on ERC, but GCG strengthens the influence of DER on ERC.

The Effect of Profit Persistency, Business Risk and Capital Structure on Earnings Return Coefficient with Good Corporate Governance as Moderating Variable

An independent institution gives appreciation to companies in Indonesia that have published their sustainability reports by ranking their sustainability reports in the Asia Sustainability Reporting Rating. This institution plays a role in facilitating and encouraging companies, organizations and other entities in Indonesia to adopt good sustainability reporting practices. This ranking factor is predicted to influence the movement of abnormal returns so that it can influence value relevance through the earnings response coefficient. The aim of this study is to reveal the relevance of value in order to obtain empirical evidence regarding the influence of sustainability reports, sustainable report ratings and earnings persistence on the earnings response coefficient. The research sample was 130 companies in Indonesia that were included in the Asia Sustainability Reporting Ranking for the period 2019 to 2022. This paper uses a quantitative multiple linear regression method to test the hypothesis. The research results show that consistent profits can be predicted from the past and make a positive contribution to future earnings response. A company transparently discloses its performance in the sustainability aspect, thereby making the profit response more positive. Companies with high sustainability ratings tend to get a more positive profit response from the market and stakeholders. This study suggests that management and company owners in Indonesia are aware of the need to pay attention to long-term sustainability through the publication of sustainability reports to become a company’s commitment to implementing sustainability and minimizing risks arising from the company’s economic, social and environmental activities.
AcknowledgmentsThe authors would like to thank the Directorate of Research, Community Service and Publications (DPPMP) of Stikubank University for supporting the funding of this research. Thanks also to fellow FEB lecturers who have helped provide the facilities needed for this research.

A literacy of the relevance of Asian value sustainability reporting in Indonesia

This study aims to determine the effect of profitability, leverage, company size and growth opportunities on the earning response coefficient of mining companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021. The data used in this research is secondary data. The population in this study are all mining companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021. The sampling technique used purposive sampling technique which was selected based on predetermined criteria, so that a sample of 55 data was obtained. The method used in this research is multiple linear regression analysis. This study uses a tool that is IBM SPSS Statistics 20 software program. The results of this study indicate that profitability has a significant positive effect on the earning response coefficient, leverage has a significant negative effect on the earning response coefficient, company size and growth opportunities have no effect on the earning response coefficient.

Dampak Profitabilitas, Leverage, Ukuran Perusahaan Dan Kesempatan Bertumbuh Terhadap Earning Response Coefficient

This study managed to investigate the effect of earnings persistence and leverage on the Earnings Response Coefficient (ERC) in companies listed on the Indonesia Stock Exchange. Based on the annual report data of 265 companies from 2011 to 2021, we show that earnings persistence has a significant and positive impact on ERC, while leverage has a limited impact on ERC. Further findings demonstrate that higher investor sentiment could lead to a larger impact of earnings persistence on ERC. These results imply that, as high earning quality Attracts high investor sentiment in the trading stock, great news can be processed into the price quickly and the price rises in a short period, while bad news could also lead to immediate price corrections with investors’ attention. Thus, we find that a positive relationship between ROE and ERC, and investor sentiment helps strengthen the relationship. Our study adds the studies on price resilience and expands the understanding of the Indonesia Stock Exchange’s features.

The Effect of Earnings Persistence and Capital Structure on Earnings Response Coefficient in Indonesia Stock Exchange

The purpose of this study is to examine the impact of Corporate Social Responsibility (CSR) on company value, with profitability as a moderating variable, for manufacturing sector firms listed on the Indonesia Stock Exchange during the period 2015-2019. This study employs quantitative methodologies, such as testing numerical data and statistical tests. The population of this study consists of all Indonesia Stock Exchange-listed manufacturing firms (IDX). This study uses a strategy of purposive sampling based on specific criteria to acquire representative data from 26 companies. Through the website www.idx.co.id, secondary company data in the form of financial reports and annual reports of manufacturing businesses listed on the Indonesia Stock Exchange are collected. The results of previous study indicate that CSR has a positive and considerable impact on the value of a company. Profitability has a favorable and substantial effect on the value of a company. Profitability can moderate the correlation between CSR and enterprise value. This demonstrates that the degree of company earnings can improve the link between corporate social responsibility and firm value.

Assessing Companies Through CSR and Profitability in Manufacturing Sector Companies in Indonesia

The purpose of this study was to obtain empirical evidence about the effect of Corporate Social Responsibility (CSR) Disclosure, Profitability, Leverage, and Sales Growth on Earning Response Coefficient (ERC) among manufacturing companies that listed on Indonesia Stock Exchange (IDX) during the years of 2015-2017. This study used purposive sampling method to collect data consisting of 52 companies listed on IDX during the period. Data was obtained from the annual report and financial statements which had been audited and ended on December 31, 2015-2017. The results of this study showed that (1) CSR disclosure had positive and significant effect on ERC, (2) Profitability, Sales Growth, Earning Persistence, Firm Size and Leverage had no significant effect on ERC, and (3) Profitability strengthened the effect of Corporate Social Responsibility Disclosure, Sales Growth, Earning Persistence, Firm Size and Leverage on Earning Response Coefficient.

Factors Affecting Earning Response Coefficient With Profitability as Moderating Variable in Manufacturing Companies

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Factors Affecting Earning Response Coefficient With Profitability as Moderating Variable in Manufacturing Companies