The Effect of Earning Persistence, Company Size, and Capital Structure on the Earning Response Coefficient

Mohamad Zulman Hakim (Faculty of Economics and Business, University of Muhammadiyah Tangerang, Indonesia)
Virania Aulia (Faculty of Economics and Business, University of Muhammadiyah Tangerang)
Hamdani Hamdani (Faculty of Economics and Business, University of Muhammadiyah Tangerang, Indonesia)
Imam Hidayat (Faculty of Economics and Business, University of Muhammadiyah Tangerang, Indonesia)
Dirvi Surya Abbas (Faculty of Economics and Business, University of Muhammadiyah Tangerang, Indonesia)
Januar Eky Pambudi (Faculty of Economics and Business, University of Muhammadiyah Tangerang, Indonesia)

International Journal of Economics, Business and Innovation Research
Vol. 1 No. 01 (2022): November, International Journal of Economics, Business and Innovation Research

The purpose of this study is to determine the effect of earnings persistence, company size, and capital structure on the Earning Response Coefficient in property and real estate sector companies listed on the IDX in 2019 – 2021. In several previous studies regarding the Earning Response Coefficient, it has several limitations, such as a lack of independent variables, using the same independent variables, and so on. So this study uses other variables such as earnings persistence, company size, and capital structure. Sampling in this study using purposive sampling method, which can produce a sample of 17 companies of 82 companies obtained from the results of eliminating the sample criteria. Methods of data analysis using Panel Data Regression Analysis. The results of this study indicate that earnings persistence and firm size have no effect on the Earning Response Coefficient. While the capital structure has a positive influence on the Earning Response Coefficient.