<![CDATA[This study examines investor reactions to earnings announcements by analyzing the influence of company size, leverage, and inter-period tax allocation on the Earnings Response Coefficient (ERC) in manufacturing firms within Indonesia’s food and beverage sub-sector. The research is motivated by the importance of understanding factors that affect market responses to accounting earnings, particularly in emerging markets where information asymmetry and differences in accounting practices may shape investor perceptions. The primary objective of this study is to determine whether firm characteristics and inter-period tax allocation influence ERC. A quantitative research approach was employed using panel data obtained from companies listed on the Indonesia Stock Exchange during the 2021–2024 period. The data were analyzed using panel least squares regression. The findings reveal that company size, leverage, and inter-period tax allocation do not have a statistically significant effect on ERC. In addition, inter-period tax allocation does not moderate the relationship between firm characteristics and investor responses to earnings announcements. These results imply that investors may place greater emphasis on earnings quality, transparency, and disclosure credibility rather than on conventional firm attributes or tax-related accounting adjustments. The study contributes to the literature by providing empirical evidence regarding the limited role of firm characteristics and tax allocation in explaining earnings informativeness within emerging capital markets.]]>
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