Earnings response coefficient as a determinant of dividend policy: Testing free cash flow theory on non-financial dividend paying firms in the Pakistan Stock Exchange

Hamid Ullah; Anjum Ihsan

doi:10.54784/1990-6587.1024

MODERASI FREE CASH FLOW TERHADAP FAKTOR-FAKTOR YANG MEMENGARUHI EARNINGS RESPONSE COEFFICIENT

Jurnal Akuntansi ◽

10.46806/ja.v8i2.617 ◽

2020 ◽

Vol 8 (2) ◽

Author(s):

Filbert Nathaniel ◽

Rizka Indri Arfianti

Keyword(s):

Cash Flow ◽

Structural Equation ◽

Market Reaction ◽

Sampling Technique ◽

Equation Model ◽

Free Cash Flow ◽

Earnings Persistence ◽

Earnings Response Coefficient ◽

Response Coefficient ◽

Earnings Response

Financial statements are the information used by investors and stakeholders for consideration of decision making. One of the important information is earnings. Quality earnings information can be relied on by users to predict the company's performance in the future. Earnings response coefficient (ERC) is a variable that measures the level of market reaction to the publication of earnings. Increasingly high market reaction means the earnings are qualified. But many other pieces of information that affect ERC, the increase in earnings is not always followed by an increase in market reaction. In this research, the other pieces of information are leverage, earnings persistence, size, and growth with free cash flow (FCF) as a moderating size and growth. The Sample of this research is 31 LQ45 companies which are listed in the IDX period 2015-2017. Sampling techniques to be used are the Non-Probability Sampling technique with Judgement Sampling Method. The data analysis method which is used in this research is the Structural Equation Model in WarpPls 5.0. The results' inner model and overall fittest are fulfilled. The conclusion showed that the leverage, size, and growth hasn’t affected the ERC, and free cash flow is not able to strengthen influence growth on ERC. However, earnings persistence has affected positively on ERC and free cash flow can strengthen influence size on ERC.Keywords: Earnings Response Coefficient, Leverage, Earnings Persistence, Size, Growth, Free Cash Flow

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PENGARUH KONSERVATISMA AKUNTANSI TERHADAP EARNINGS RESPONSE COEFFICIENT (ERC) DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI

Jurnal Kajian Akuntansi dan Auditing ◽

10.37301/jkaa.v0i0.6485 ◽

2008 ◽

Author(s):

Olliza Mayesti ◽

Resti Yulistia Muslim

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Negative Influence ◽

Accounting Conservatism ◽

Managerial Ownership ◽

Net Income ◽

Manufacturing Companies ◽

Earnings Response Coefficient ◽

Response Coefficient ◽

Earnings Response

The objective of this study is to examine whether corporate governance influence the relation between accounting conservatism and Earnings Response Coefficient (ERC). The accounting conservatism proxy used in this research is accruals obtained from differences between net income and cash flow. Sample consists of 31 manufacturing companies that listed in Indonesian Stock Exchange since 20032006. Hypotheses are examined by using multiple regressions. The result shows that there is a negative influence of accounting conservatism to Earnings Response Coefficient. Managerial ownership as a moderating variable did not affect the relation between accounting conservatism and Earnings Response Coefficient, but independent board of commissioner composition as a moderating variable affected the relation between accounting conservatism and Earnings Response Coefficient.

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PENGARUH EARNINGS MANAGEMENT TERHADAP EARNINGS QUALITY

Jurnal Kajian Akuntansi dan Auditing ◽

10.37301/jkaa.v0i0.5078 ◽

2010 ◽

Author(s):

Pupun Tri Wahyuni ◽

Resti Yulistia Muslim

Keyword(s):

Earnings Management ◽

Sampling Method ◽

Stock Exchange ◽

Earnings Quality ◽

Manufacturing Companies ◽

Financial Report ◽

Earnings Response Coefficient ◽

Discretionary Accrual ◽

Response Coefficient ◽

Earnings Response

This research objective is to axamine empirically the influence of earnings management on earnings quality. The study motivated by the controversy of previous study about earnings management and earnings quality. Earnings management was measured by Discretionary Accrual and earnings quality was measured by Earnings Response Coefficient (ERC). The units were 128 (16x8) Quartal financial report in manufacturing companies listed in the Jakarta Stock Exchange, started from the year 2005 up to 2006. The data was collected using purposive sampling method. Statistical method used to test the hypotheses was multiple regressions. The result of the research showed that: the influence of earnings management on earnings quality was negative, sig 0.049. It means that the lower earnings management will be followed by higher earnings quality. This study supported the result of Fetham and Pae (2000), Nelson et al. (2000), Scott (2000), Lobo and Zhou (2001), also Teixeira (2002), Pudjiastuti (2006).

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Ukuran Perusahaan Memoderasi Pengaruh Free Cash Flow dan Leverage Terhadap Kebijakan Dividen

E-Jurnal Akuntansi ◽

10.24843/eja.2019.v26.i01.p18 ◽

2019 ◽

pp. 484

Author(s):

I Kadek Edi Rian Trisna ◽

Gayatri Gayatri

Keyword(s):

Cash Flow ◽

Firm Size ◽

Dividend Policy ◽

Stock Exchange ◽

Free Cash Flow ◽

Cash Dividend ◽

Optimal Dividend ◽

Current Growth ◽

Optimal Dividend Policy ◽

A Company

Determining the optimal cash dividend policy a company should consider several factors. An optimal dividend policy is required because it can create a balance between dividends and current growth in the next period. The purpose of this study is to obtain empirical evidence on the effect of free cash flow and leverage on dividend policy and firm size capability in moderating the effect of free cash flow and leverage against dividend policy. Companies going public listed on the Indonesia Stock Exchange (BEI) year 2013-2017 is the location of research with purposive sampling as a method of determining the sample. Companies that meet the criteria are 10 companies with a total of 39 observations. Moderated Regression Analysis (MRA) was used to test in this research. The result showed that free cash flow had positive and leverage effect negatively on dividend policy. The study also found that firm size is able to strengthen the effect of free cash flow on dividend policy and weaken the influence of leverage on dividend policy. Keywords: dividend policy, free cash flow, leverage, company size..

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PENGARUH UKURAN PERUSAHAAN, LEVERAGE, RISIKO SISTEMATIK, DAN INVESTMENT OPPORTUNITY SET TERHADAP EARNINGS RESPONSE COEFFICIENT PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PADA TAHUN 2012-2014

Jurnal Ekonomi ◽

10.24912/je.v20i3.406 ◽

2018 ◽

Vol 20 (3) ◽

pp. 463

Author(s):

Ivan Kurnia, Sufiyati

Keyword(s):

Firm Size ◽

Sampling Method ◽

Stock Exchange ◽

Systematic Risk ◽

Manufacturing Companies ◽

Investment Opportunity ◽

Earnings Response Coefficient ◽

Response Coefficient ◽

Investment Opportunity Set ◽

Earnings Response

The purpose of this research is to gain empirical evidence about the influence of firm size, leverage, systematic risk, and investment opportunity set on earnings response coefficient on manufacturing companies listed in Indonesia Stock Exchange for 2012-2014. Samples selected by using purposive sampling method. This research used a sample of one hundred fourty one manufacturing companies. The result of this research indicate that only systematic risk have an influence on earnings response coefficient while firm size, leverage, and investment opportunity set has not an influence on earnings response coefficient. For a better results, further research may add another variable that influence on earnings response coefficient.

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HUBUNGAN INFORMASI PELAPORAN EARNINGS AKUNTANSI TERHADAP PERGERAKAN RETURNS SAHAM PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK JAKARTA

Media Riset Akuntansi Auditing & Informasi ◽

10.25105/mraai.v8i2.977 ◽

2008 ◽

Vol 8 (2) ◽

pp. 133

Author(s):

Rosna K. Haraharap ◽

Arga Fitria

Keyword(s):

Random Sampling ◽

Stock Return ◽

Stock Exchange ◽

Lower Sensitivity ◽

Earnings Response Coefficient ◽

Response Coefficient ◽

Sensitivity Level ◽

Earnings Response ◽

Negative Earnings

The purpose of this research is to know whether the negative earnings stock have lower sensitivity level or lower Earnings Response Coefficient (ERC) to stock return than the positive earnings stock and this research also aim to know whetherthe negative earnings stock will have weaker level strength of correlation (R2) to stock return than the positive earnings stock. The samples are 25 fisted manufactured company at Jakarta Stock Exchange during 2000-2004 which selected using purposive non random sampling. Data analyze method used is linier regression. The result of this research is that the negative earnings stock will have the lower level sensitivity or lower Earnings Response Coefficient (ERC) to stock return, compared to the level sensitivity (ERC) of positive earnings stock This research also finds that the negative earnings stock will have weaker level strength of correlation (R2) to stock return, compared to the level strength of correlation (R2) of positive earnings stock.Keywords: Negative earnings, Positive earnings, Stock return, Earnings response coefficient, Return-earnings association

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Refleksi Perataan Laba terhadap Respon Pasar

Journal of Research and Applications Accounting and Management ◽

10.18382/jraam.v2i2.180 ◽

2017 ◽

Vol 2 (2) ◽

pp. 129

Author(s):

Ratna Wijayanti Daniar Paramita

Keyword(s):

Voluntary Disclosure ◽

Stock Exchange ◽

Secondary Data ◽

Income Smoothing ◽

Market Response ◽

Manufacturing Companies ◽

Earnings Response Coefficient ◽

Earnings Information ◽

Response Coefficient ◽

Earnings Response

AbstractThe purpose of this study is to obtain empirical evidence, examine and explain the effect of companies that implement income smoothing towards the market response, with voluntary disclosure as moderating variables. This study uses the secondary data of 143 manufacturing companies that go public in BEI (Indonesian Stock Exchange) during 2011-2015. This research variables include income smoothing as an independent variable, the market response is proxies by Earnings Response Coefficient (ERC) as the dependent variable and voluntary disclosure is moderating variable. The data analysis methods is regression with single moderating variable. The study finds that income smoothing affects the market response both individually and partially. The results also reveal that earnings information delivered on the date of the announcement was responded positively by investors. However, the presentation of the full report in the form of voluntary disclosure actually reduces the market response to earnings at the date of announcement.AbstrakTujuan penelitian ini adalah untuk memperoleh bukti empirik, menguji dan menjelaskan pengaruh perusahaan yang melakukan income smoothing terhadap respon pasar dengan voluntary disclosure sebagai variabel pemoderasi pada perusahaan manufaktur yang go public di BEI tahun 2011-2015 sebanyak 143 perusahaan. Variable penelitian ini income smoothing sebagai variabel bebas, respon pasar diproksikan dengan Earnings Response Coefficient (ERC) sebagai variabel terikat dan voluntary disclosure adalah variabel moderasi. Metode analisis data menggunakan regresi dengan variabel moderasi tunggal. Income smoothing secara individu dan parsial berpengaruh terhadap respon pasar. Laba yang disampaikan pada tanggal pengumuman direspon positif oleh investor. Namun demikian penyajian laporan secara lengkap dalam bentuk voluntary disclosure justru mengurangi respon pasar terhadap laba pada tanggal pengumuman.

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PENGARUH FREE CASH FLOW, INVESTMENT OPPORTUNITY SET, MANAGERIAL OWNERSHIP TERHADAP DIVIDEN POLICY MELALUI DEBT POLICY SEBAGAI PEMEDIASI

WIDYA MANAJEMEN ◽

10.32795/widyamanajemen.v1i2.355 ◽

2019 ◽

Vol 1 (2) ◽

pp. 40-59

Author(s):

Luh Nik Oktarini ◽

Putu Atim Purwaningrat

Keyword(s):

Data Analysis ◽

Cash Flow ◽

Dividend Policy ◽

Stock Exchange ◽

Free Cash Flow ◽

Managerial Ownership ◽

Investment Opportunity ◽

Investment Opportunity Set ◽

Debt Policy ◽

Program Version

The purpose of this study was to determine the effect of free cash flow to debt policy to determine the influence of investment opportunity set against debt policy to determine the effect of managerial ownership on debt policy to determine the effect of free cash flow to the dividend policy to determine the effect of managerial ownership to dividend policy. This research was conducted on manufaktur companies listed in Indonesia Stock Exchange 2011-2015 period. Methods of data collection is done by using the method of documentation. Data analysis with path analysis with AMOS program version 20. The results showed the effect of variable free cash flow to debt policy is significant, effect of variable investment opportunity set against debt policy is significant, the effect of managerial ownership variable against debt policy is not significantly, the effect of variable free cash flow toward dividend policy is not significant, the effect of managerial ownership variable to dividend policy is a significant and indirect influence of the variable investment opportunity set against the dividend policy through debt policy is significant.

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LEVERAGE, PERSISTENSI LABA DAN SISTEMATIK RISK, TERHADAP EARNINGS RESPONSE COEFFICIENT PADA ENTITAS INDUSTRI

JMM UNRAM - MASTER OF MANAGEMENT JOURNAL ◽

10.29303/jmm.v7i2.286 ◽

2018 ◽

Vol 7 (2) ◽

Author(s):

Lalu Takdir Jumaidi ◽

Rijal Rijal

Keyword(s):

Stock Price ◽

Stock Exchange ◽

Systematic Risk ◽

Manufacturing Companies ◽

Earnings Response Coefficient ◽

Earnings Information ◽

Response Coefficient ◽

Economic Decision Making ◽

Other Information ◽

Earnings Response

Investors use financial statement information in their investment decisions. Earnings is usually the main consideration of investors in making decision. However, the increase in earnings is not always followed by positive stock price changes. It shows that in economic decision-making the investors not only need information about the company's financial condition, i.e profit, but also other information. Therefore, investors need useful tool to predict the up or rise of stock price namely earnings response coefficient which shows market reaction on earnings information published by company. If the investor perceived the information content of the announced profits as good quality then the investors will react positively to earnings anouncement.Therefore purpose of this study is to examine the effect of systematic risk, leverage and earnings persistence on earnings response coefficient at manufacturing companies listed on the Stock Exchange. The population in this study are all manufacturing companies listed on the IDX in 2015. The sample of this study is determined by the method of purposive sampling and this study obtained 56 sample companies. The study usesecondary data which is obtained from www.idx.co.id. The results of this study based on multiple regression analysis indicate that systematic risk, leverage and profit persistence have no effect on earnings response coefficient.

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Pengaruh Struktur Kepemilikan, Free Cash Flow terhadap Kebijakan Dividen pada Perusahaan Asuransi yang Terdaftar di BEI Tahun 2013-2017

Jurnal Ekonomi Akuntansi dan Manajemen ◽

10.19184/jeam.v17i2.9513 ◽

2018 ◽

Vol 17 (2) ◽

pp. 94

Author(s):

Deaninda Sekar Pembayun ◽

Subarjo Subarjo

Keyword(s):

Cash Flow ◽

Ownership Structure ◽

Dividend Policy ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Institutional Ownership ◽

Free Cash Flow ◽

Managerial Ownership ◽

Insurance Company ◽

Beta Coefficient

This study aims to find out the Effect of Managerial Ownership Structure (MNJR), Institutional Ownership Structure (INST), Free cash flow (FCF), and the Ownership Structure on Dividend Policy of Insurance Company Registered on the Indonesia Stock Exchange 2013-2017. The population in this study amounted to 55 insurance companies listed on the Indonesia Stock Exchange in 2013-2017. The samples taken were 11 companies with purposive sampling techniques. Hypothesis testing is carried out using multiple linear regression analysis. The results of the study showed that (1) Managerial Ownership Structure does not affect the Dividend Policy as evidenced by the beta coefficient (B) of 0,000, t = -0,064 <t = 2,008, significance probability of 0,0950> 0,05 (2) ownership structure Institutional effect on Dividend Policy is proven by beta coefficient (B) of 0.020, t = 3.053> t = 2.008 and significance probability value of 0.004 <0.05 (3) Free cash flow does not affect Dividend Policy as evidenced by beta coefficient (B) 0,001, t = 1,904 <t = 2,008 and significance probability value of 0,063> 0,05 (4) probability Managerial Ownership Structure, Institutional Ownership Structure, Simultaneous Cash Flow affect the Dividend Policy as evidenced by the value F = 5,031> F = 4,238 , the significance probability value is 0.009 <0.05. Keywords: Managerial Ownership, Institutional Ownership, Free cash flow and Dividend Policy.

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