The Effect of Size, Leverage to Earnings Response Coefficient (ERC) with Earnings Persistence as An Intervening Variable

The purpose of this study is to obtain empirical evidence about the effect of size and leverage on the earnings response coefficient (ERC) with earnings persistence as an intervening variable in manufacturing companies listed on the Indonesia Stock Exchange (IDX). This research uses path analysis. This research uses purposive sampling method in selecting samples from manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2010 to 2014. The results of the study indicate that size affects earnings persistence. Leverage does not affect earnings persistence. Size affects the earnings response coefficient (ERC). Leverage does not affect the earnings response coefficient (ERC). And the persistence of earnings does not affect the earnings response coefficient (ERC). The results also showed that the effect of Size and leverage on earnings response coefficient (ERC) through earnings persistence produced a very weak effect. The author's suggestion is that further research can extend the observation period so that better results are expected. In completing research the research time can be further extended so as to reduce errors in taking and processing data. Keywords: size,persistence earnings, leverage, earnings response coefficient (ERC) DOI: 10.7176/RJFA/11-8-07 Publication date: April 30th 202