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Journal articles on the topic 'Earnings persistence'
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1
Malau, Melinda. "THE EFFECT OF EARNINGS PERSISTENCE AND EARNINGS TRANSPARENCY ON COMPANY PERFORMANCE WITH CORPORATE GOVERNANCE AS MODERATING VARIABLE (Empirical Study in Manufacturing Company that Listed in Indonesia Stock Exchange in 2014-2016)." EAJ (ECONOMICS AND ACCOUNTING JOURNAL) 2, no. 2 (August 12, 2019): 86. http://dx.doi.org/10.32493/eaj.v2i2.y2019.p86-94.
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ABSTRACTEarnings persistence and earnings transparency are an important factors in company performance. The quality of financial statement will differentiate performance between one company to another. The research purposed to analyze the effect of earnings persistence and earnings transparency on the company performance. In addition, the research purposed to analyze corporate governance as a moderating variable can strengthens the effect between earnings persistence and earnings transparency on company performance. This research using sample of 363 firms-year in 2014-2016 and applying panel data analysis. The results show that earnings persistence variable has a positive significant effect on the company performance. Earning transparency also has a positive significant effect on company performance. For corporate governance as a moderation variable strengthens the effect between earnings persistence and earning transparency to the company performance. Size and age also have a positive significant effect on company performance. Keywords: earnings persistence; earnings transparency; company performance; corporate governance.
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Kusumawati, Synthia Madya, and Hyashinta Dyah P. "EARNING PERSISTENCE ON FIRM TAX DIFFERENCES AND FAMILY OWNERSHIP." Ultimaccounting : Jurnal Ilmu Akuntansi 12, no. 1 (June 19, 2020): 103–15. http://dx.doi.org/10.31937/akuntansi.v12i1.1577.
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Abstract- Prior research find evidence consistent with the hypothesis that future earnings influenced by difference between accounting and fiscal earnings (book tax differences). Many investors forming expectations of future earnings information derived from the difference between fiscal and commercial earnings, there were some investors would satisfied to see small differences between fiscal and commercial earnings, otherwise have the opposite view. This study aim to investigate how book-tax difference and family ownership play a role in the persistence of earnings. The authors using a sample 692 firm years of Indonesian listed companies within 2011-2016, they estimate cross-sectional regressions of the proxy for book-tax differences and family ownership on earning persistence. The study found that current pre-tax earnings can predict future earnings and also firm years with large book-tax difference have less earnings persistence than firm years with small book tax difference. Further, this study found no evidence that family ownership have significant role in persistence of earnings.
Keywords: Earning Persistence, Future earnings, Pre-tax earnings, Book tax difference, Family Ownership.
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Sarah, Varadika, Ahmad Jibrail, and Sudrajat Martadinata. "PENGARUH ARUS KAS KEGIATAN OPERASI, SIKLUS OPERASI, UKURAN PERUSAHAAN DAN TINGKAT HUTANG TERHADAP PERSISTENSI LABA (STUDI EMPIRIS PADA PERUSAHAAN JASA SUB SEKTOR KONSTRUKSI DAN BANGUNAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2016)." Jurnal TAMBORA 3, no. 1 (February 21, 2019): 45–54. http://dx.doi.org/10.36761/jt.v3i1.184.
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Earnings Persistence is earning can reflect the earnimg priod next. In fact there are still companies that do not guarantee a persistent of earning. This study wished to examine ehe effect of operating cash flows, operating cycle, firm size, and the lever of debt both individually and simultaneously to earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016. The sampling technique using purposive sampling so than 9 sample companies were obtained. Data were analized using panel data with multiple regression then tested with the help of STATA 11 softwere.The result of this study are: operating cash flow, operating cycle, firm size there is not significant effect on earning persistence. While the level of debt has significant effect on earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016
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Irawan, Ferry, and Lili Talpia. "THE EFFECT OF LEVERAGE, FIRM SIZE, EARNING GROWTH, AND EARNING PERSISTENCE ON EARNING RESPONSE COEFFICIENT." Bina Ekonomi 25, no. 1 (October 26, 2021): 41–56. http://dx.doi.org/10.26593/be.v25i1.5124.41-56.
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This study aims to investigate the effect of leverage, firm size, earnings growth, and earning persistence on earnings response coefficient. The population used in this study are all manufacturing companies listed in Indonesia Stock Exchange from 2015 until 2019 and had positive earnings before tax. Consequently, the samples in this research are 68 manufacturing companies so that the observations are 340. For examining data, this research uses a panel data regression model. After running the chow test and Lagrange multiplier test, the most suitable method for the regression model is the common effect model. This research shows that leverage and firm size do not influence earning response coefficient. Meanwhile, earnings growth and earnings persistence have a positive effect on the earnings response coefficient.
Keywords: Earning growth; earning persistence; earning response coefficient; firm size; leverage
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Halim, Hansen, and Stevanus Pangestu. "Manajemen Laba pada Periode Initial Public Offering dan Dampaknya pada Persistensi Laba." E-Jurnal Akuntansi 30, no. 11 (November 28, 2020): 2922. http://dx.doi.org/10.24843/eja.2020.v30.i11.p16.
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The paper examinse whether Indonesian corporations manage their earnings through real activities and accrual accounting during their initial public offerings. We also investigate the effect of this IPO earnings management on earnings persistence in the subsequent period. Seventy-three non-financial IPOs during 2014-2017 were taken as research sample. Afer a series of statistical analyses, we find that companies that went public committed both real and accrual earnings management to inflate income figures in their IPO year. Furthermore, we also find that accrual earnings management negatively affects earning persistence, whereas real earnings management positively affects earnings persistence.
Keywords: IPO; Earnings Management; Earnings Persistence, Go Public.
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Nahak, Kunigunda Hoar Tae, Ni Nengah Seri Ekayani, and Ni Putu Riasning. "Pengaruh Volatilitas Arus Kas, Volatilitas Penjualan, Tingkat Hutang dan Ukuran Perusahaan Terhadap Persistensi Laba pada Perusahaan Pertambangan Batu Bara yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2014-2018." Jurnal Riset Akuntansi Warmadewa 2, no. 2 (May 25, 2021): 92–97. http://dx.doi.org/10.22225/jraw.2.2.3360.92-97.
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“Earning persistence is a component of earning quality. This study aims to determine whether the cash flow volatility, sales volatility, debt levels and company size affect the persistence of earnings. Sampling method is purposive sampling. The population in this study consisted of 24 coal mining companies listed in the Indonesia Stock Exchange and the observation period starts from 2014-2018. The number of samples that meet the sample criteria is 10 coal companies with 50 observational data. Data analysis method used is multiple linear regression. Based on the results af analysis and testing, it is found that cash flow volatility has a significant effect on earnings persistence. While sales volatility has a negative and significant effect on earnings persistence, the level of debt has a positive and significant effect on earnings persistence, and firm size has on effect on earnings persistence.
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Syanthi, Nila Trisna Trisna, Made Sudarma, and Erwin Saraswati. "DAMPAK MANAJEMEN LABA TERHADAP PERENCANAAN PAJAK DAN PERSISTENSI LABA." EKUITAS (Jurnal Ekonomi dan Keuangan) 17, no. 2 (February 7, 2017): 192. http://dx.doi.org/10.24034/j25485024.y2013.v17.i2.2248.
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This study aims to examine the effect of earnings management on tax planning and earnings persistence using firm size as a control variable. The analytical method used is panel data regression using secondary data from the Indonesia Stock Exchange. The sample consists of 40 manufacturing firms in period of 2006-2010. The test results found that both real earnings management and accrual earnings management increase earnings persistence, while tax planning does not affect earnings persistence. Firms do real earnings management through the manipulation of sales and reduction of discretionary expenses to influence earnings persistence, while overproduction does not affect earnings persistence. In addition, the firms do not perform earnings management in tax planning. The firms that perform earnings management would have more persistent earnings than firms that do not perform earnings management. The larger the firm size, the more persistent the earnings. This study supports the agency theory which explains that earnings management is done by signaling motivation.
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Frankel, Richard, and Lubomir Litov. "Earnings persistence." Journal of Accounting and Economics 47, no. 1-2 (March 2009): 182–90. http://dx.doi.org/10.1016/j.jacceco.2008.11.008.
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HZ Nasution, Syarifuddin, Azhar Maksum, and Parapat Gultom. "Factors Affecting Earning Response Coefficient with Profitability as a Moderating Variable in Mining Companies Listed on The Indonesia Stock Exchange for the 2018-2020 Period." International Journal of Research and Review 9, no. 12 (December 8, 2022): 159–71. http://dx.doi.org/10.52403/ijrr.20221217.
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This study aims to determine the effect of capital structure, firm size, earnings persistence, and growth opportunities on the earnings response coefficient with profitability as a moderating variable in mining companies listed on the Indonesia Stock Exchange for the 2018-2020 period. The population used in this study was 52 mining companies listed on the Indonesia Stock Exchange. The sampling method is to use purposive sampling. Based on the criteria that have been made, the number of samples is 37 companies, so a total of 111 research observations are obtained. Data processing was carried out using the EViews statistical program. The results of this study indicate that: (1) capital structure has a negative and significant effect on the earnings response coefficient, (2) firm size has a positive and significant effect on the earnings response coefficient, (3) earnings persistence has a positive and significant effect on the earnings response coefficient, (4 ) growth opportunities have a positive and significant effect on the earning response coefficient, (5) profitability can moderate the effect of capital structure, firm size, and growth opportunities on the earning response coefficient, (6) profitability is not able to moderate the effect of earnings persistence on the earning response coefficient. Keywords: Capital Structure, Firm Size, Profit Persistence, Growth Opportunities, Profitability, Earning Response Coefficient.
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Merkusiwati, Ni Ketut Lely Aryani, and I. Gusti Ayu Eka Damayanthi. "Earnings Management and Different Tax Book To Explain Earnings Persistency." E-Jurnal Akuntansi 30, no. 1 (January 14, 2020): 202. http://dx.doi.org/10.24843/eja.2020.v30.i01.p15.
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The study aims to test the direct and indirect effects of earnings management on earnings persistence through different tax books. Opportunistic earnings management results can reduce persistence of accruals. A decrease in accrual persistence will reduce earnings persistence. Different book tax variable was added as an alternative explanation. Earnings management can increase the book tax different reported by the company. A high tax different book can also reduce earnings persistence. A high tax different book is a signal of poor earnings quality. The population of this study is companies listed on the Indonesia Stock Exchange. The sample of this research is manufacturing companies listed on the Indonesia Stock Exchange in 2012-2018. Data analysis methods used in this study were descriptive statistics and path analysis. The path analysis results prove that there is an indirect effect of earnings management on earnings persistence through different tax books. The results of the study prove that there is no direct influence of earnings management on earnings persistence.Keywords: Book Tax Different; Earnings Management; Earnings Persistency.
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Halimatus Sa'diyah, Sukma, and Dwi Suhartini. "The The Effect of Book-Tax Differences and Operating Cash Flow on Earnings Persistence with Good Corporate Governance as Moderating Variable." Kompak :Jurnal Ilmiah Komputerisasi Akuntansi 15, no. 1 (June 24, 2022): 74–88. http://dx.doi.org/10.51903/kompak.v15i1.608.
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Persistent earning show that the company is able to maintain sustainable profits. With this in mind, this study was conducted to examine and analyze the effect of Permanent Differences, Temporary Differences, and Operating Cash Flows on Profit Persistence moderated by Good Corporate Governance in food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2015-2019. This study uses secondary data and analyzed using Structural Equation Model based on Partial Least Square. The results of the study show that only temporary differences have a significant effect on earnings persistence and Good Corporate Governance can weaken the relationship between temporary differences and earnings persistence.
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Yang, Simon. "A Reexamination of Earnings Persistence on the Incremental Value Relevance of Earnings Levels and Earnings Changes." International Journal of Accounting and Financial Reporting 8, no. 2 (June 10, 2018): 126. http://dx.doi.org/10.5296/ijafr.v8i2.13160.
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This study reexaminesthe role of earnings persistence as to understand the incremental value relevance of earnings levels and earnings changes in explaining stock returns in the stock market of U.S. The results show that earnings levels and earnings changes together provide the higher value relevant information than each earnings variable alone in explaining stock returns. An increase in earnings persistence, approximated by different time-serial and firm-specific measures, puts more (less) value relevant weight on earning changes (levels). However, the complementary value relevance between earnings levels and earnings changes is somehow weak, implying that a possibly deteriorating valuation role for earnings levels and earnings changes may occur in the recent years for the U.S. stock market.
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Aini, Amira Qurrata, and Zuraida Zuraida. "PENGARUH ARUS KAS OPERASI, TINGKAT UTANG, DAN OPINI AUDIT TERHADAP PERSISTENSI LABA PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BEI PERIODE 2013-2016." Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi 5, no. 2 (July 27, 2020): 182–92. http://dx.doi.org/10.24815/jimeka.v5i2.15552.
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The study aims to determine the effect of operating cash flow, leverage, and audit opinions on earnings persistence. The population of this study is mining companies listed in Indonesian Stock Exchange in 2013-2016. The sample selected by purposive sampling method. The data used in this research is secondary data in the form of financial statement companies. Data analysis was performed using multiple linear regression statistical analysis. The results of this research show that operating cash flow, leverage, and audit opinions simultaneously influence earnings persistence. Partially operating cash flow and leverage significantly influence earnings persistence, whereas, audit opinions do not influence earning persistence.
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Afdil Malik Ibrohim, Darmansyah, and Muhammad Yusuf. "Persistensi Laba Dimediasi Corporate Social Responsibility Pada Perusahaan Manufaktur Sektor Insustri Konsumsi Makanan Dan Minuman Di Bursa Efek Indonesia." Jurnal Riset Akuntansi & Perpajakan (JRAP) 6, no. 02 (December 31, 2019): 91–110. http://dx.doi.org/10.35838/jrap.2019.006.02.20.
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This research is aimed to examine andfind out empirical evidence o f the influence o f Cash Flow Volatility, Sales Volatility, Leverage, Firm size, Corporate Social Responsibility (CSR) on earnings persistence and the influence o f Cash Flow Volatility, Sales Volatility, Leverage, Firm size on earnings persistence when mediated by Corporate Social Responsibility (CSR) in manufacturing companies consumer goods industry sectors food and beverages listed on the Indonesia Stock Exchange period 2011-2015. The sampling method used is purposive sampling, of the population of in manufacturing companies consumer goods industry sectors food and beverages that exist, would have taken some samples were selected based on certain criteria. Data were tested by means of the classic assumption by using multiple regression analysis techniques (multiple regression) using SPSS 22 for windows. The results show that Cash Flow Volatility, Sales Volatility, Firm size, Corporate Social Responsibility (CSR) partially have no influence significant on Earning persistence. Leverage has significant effect to earnings persistence. Cash Flow Volatility on earnings persistence when mediated by Corporate Social Responsibility (CSR) have significant effect. Sales Volatility, Firm size, Leverage on earnings persistence when mediated by Corporate Social Responsibility (CSR) have not significant effect. The tests are based on a confidence level of 95%, and an error rate of 5%.
ABSTRAK
Penelitian ini bertujuan untuk menguji dan mengisi bukti empiris pengaruh Volatilitas Arus Kas, Volatilitas Penjualan, Leverage, Ukuran Perusahaan, Tanggung Jawab Sosial Perusahaan (CSR) terhadap persistensi laba dan pengaruh Volatilitas Arus Kas, Volatilitas Penjualan, Leverage, Perusahaan ukuran pada persistensi pendapatan ketika dimediasi oleh Corporate Social Responsibility (CSR) di perusahaan manufaktur sektor industri barang konsumsi makanan dan minuman yang terdaftar di Bursa Efek Indonesia periode 2011-2015. Metode pengambilan sampel yang digunakan adalah purposive sampling, dari populasi perusahaan manufaktur sektor industri barang konsumsi makanan dan minuman yang ada, pasti diambil beberapa sampel yang dipilih berdasarkan kriteria tertentu. Data diuji dengan menggunakan asumsi klasik dengan menggunakan teknik analisis regresi berganda (multiple regression) menggunakan SPSS 22 for windows. Hasil penelitian menunjukkan bahwa Volatilitas Arus Kas, Volatilitas Penjualan, ukuran Perusahaan, Corporate Social Responsibility (CSR) secara parsial tidak memiliki pengaruh yang signifikan terhadap Earning Persistence. Leverage berpengaruh signifikan terhadap persistensi laba. Volatilitas Arus Kas terhadap persistensi laba ketika dimediasi oleh Corporate Social Responsibility (CSR) memiliki pengaruh yang signifikan. Volatilitas Penjualan, ukuran Perusahaan, Leverage pada persistensi laba ketika dimediasi oleh Corporate Social Responsibility (CSR) tidak memiliki pengaruh yang signifikan. Tes didasarkan pada tingkat kepercayaan 95%, dan tingkat kesalahan 5%.
JEL Classification: Q56, M41
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Afdil Malik Ibrohim, Darmansyah, and Muhammad Yusuf. "Persistensi Laba Dimediasi Corporate Social Responsibility Pada Perusahaan Manufaktur Sektor Insustri Konsumsi Makanan Dan Minuman Di Bursa Efek Indonesia." Jurnal Riset Akuntansi & Perpajakan (JRAP) 6, no. 02 (December 31, 2019): 91–110. http://dx.doi.org/10.35838/jrap.v6i02.1248.
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ABSTRACT
This research is aimed to examine andfind out empirical evidence o f the influence o f Cash Flow Volatility, Sales Volatility, Leverage, Firm size, Corporate Social Responsibility (CSR) on earnings persistence and the influence o f Cash Flow Volatility, Sales Volatility, Leverage, Firm size on earnings persistence when mediated by Corporate Social Responsibility (CSR) in manufacturing companies consumer goods industry sectors food and beverages listed on the Indonesia Stock Exchange period 2011-2015. The sampling method used is purposive sampling, of the population of in manufacturing companies consumer goods industry sectors food and beverages that exist, would have taken some samples were selected based on certain criteria. Data were tested by means of the classic assumption by using multiple regression analysis techniques (multiple regression) using SPSS 22 for windows. The results show that Cash Flow Volatility, Sales Volatility, Firm size, Corporate Social Responsibility (CSR) partially have no influence significant on Earning persistence. Leverage has significant effect to earnings persistence. Cash Flow Volatility on earnings persistence when mediated by Corporate Social Responsibility (CSR) have significant effect. Sales Volatility, Firm size, Leverage on earnings persistence when mediated by Corporate Social Responsibility (CSR) have not significant effect. The tests are based on a confidence level of 95%, and an error rate of 5%.
ABSTRAK
Penelitian ini bertujuan untuk menguji dan mengisi bukti empiris pengaruh Volatilitas Arus Kas, Volatilitas Penjualan, Leverage, Ukuran Perusahaan, Tanggung Jawab Sosial Perusahaan (CSR) terhadap persistensi laba dan pengaruh Volatilitas Arus Kas, Volatilitas Penjualan, Leverage, Perusahaan ukuran pada persistensi pendapatan ketika dimediasi oleh Corporate Social Responsibility (CSR) di perusahaan manufaktur sektor industri barang konsumsi makanan dan minuman yang terdaftar di Bursa Efek Indonesia periode 2011-2015. Metode pengambilan sampel yang digunakan adalah purposive sampling, dari populasi perusahaan manufaktur sektor industri barang konsumsi makanan dan minuman yang ada, pasti diambil beberapa sampel yang dipilih berdasarkan kriteria tertentu. Data diuji dengan menggunakan asumsi klasik dengan menggunakan teknik analisis regresi berganda (multiple regression) menggunakan SPSS 22 for windows. Hasil penelitian menunjukkan bahwa Volatilitas Arus Kas, Volatilitas Penjualan, ukuran Perusahaan, Corporate Social Responsibility (CSR) secara parsial tidak memiliki pengaruh yang signifikan terhadap Earning Persistence. Leverage berpengaruh signifikan terhadap persistensi laba. Volatilitas Arus Kas terhadap persistensi laba ketika dimediasi oleh Corporate Social Responsibility (CSR) memiliki pengaruh yang signifikan. Volatilitas Penjualan, ukuran Perusahaan, Leverage pada persistensi laba ketika dimediasi oleh Corporate Social Responsibility (CSR) tidak memiliki pengaruh yang signifikan. Tes didasarkan pada tingkat kepercayaan 95%, dan tingkat kesalahan 5%.
JEL Classification: Q56, M41
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Kimouche, Bilal. "Persistence and Predictive Ability of Earnings: Evidence from France and the UK." Economics and Business 35, no. 1 (January 1, 2021): 190–200. http://dx.doi.org/10.2478/eb-2021-0013.
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Abstract The persistence and predictive ability are extensively requested as desirable attributes of earnings quality in the literature. The paper aims at investigating the persistence and predictive ability of earnings in French and UK companies. The study included a panel data of 1035 firm-year observations for 115 French listed companies from the CAC All-Tradable and 900 firm-year observations for 100 UK listed companies from the FTSE All-Share, during the period of 2011–2019. The research design was based on two equations starting from Sloan (1996) that were estimated using Fixed Effects Method. The study showed that earnings were persistent but they had no predictive ability regarding the future cash flows whether in French or UK companies and that earnings of UK companies were more persistent than those of the French companies. We argue that the persistence of earnings and the inability to predict future cash flows can be evidence of earnings management. The study contributes to the literature about earnings quality by studying earnings persistence and earnings predictive ability together in two different environments. The results require that users must take into consideration the illusory persistence of earnings, auditors must be cautious regarding the manipulation of earnings by managers, and accounting standard setters must review the reporting guidelines of cash flows to enhance their predictability by earnings.
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Cheng, Che-Hui, and Po-Chin Wu. "Nonlinear earnings persistence." International Review of Economics & Finance 25 (January 2013): 156–68. http://dx.doi.org/10.1016/j.iref.2012.07.003.
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PIMENTEL, RENÊ COPPE, and ANDSON BRAGA DE AGUIAR. "THE ROLE OF EARNINGS PERSISTENCE IN VALUATION ACCURACY AND THE TIME HORIZON." Revista de Administração de Empresas 56, no. 1 (February 2016): 71–86. http://dx.doi.org/10.1590/s0034-759020160107.
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ABSTRACT Based on the assumption that earnings persistence has implications for both financial analysis and compensation contracts, the aim of this paper is to investigate the role of earnings persistence assuming that (i) more persistent earnings are likely to be a better input to valuation models and (ii) more persistent earnings are likely to serve as a proxy for long-term market and managerial orientation. The analysis is based on Brazilian listed firms from 1995 to 2013, and while we document strong support for the relevance of earnings persistence in financial analysis and valuation, we fail to document a significant relationship between earnings persistence and long-term value orientation. These results are sensitive to different specifications, and additional results suggest that firms' idiosyncratic risk (total risk) is relevant to explain the focus on short-term outcomes (short-termism) across firms. The main contribution of this paper is to offer empirical evidence for the relevance of accounting numbers in both valuation and contractual theories in an emergent market.
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Karim, Mohammad A., and Sayan Sarkar. "Auditors’ quality, footnotes, and earnings persistence." Managerial Finance 46, no. 2 (May 13, 2019): 267–82. http://dx.doi.org/10.1108/mf-11-2018-0569.
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Purpose The purpose of this paper is to investigate the role of auditors in financial statement readability. Using a simple proxy for financial statement obfuscation (number of footnotes), the authors examine the relationship between auditor quality, financial statement readability and earnings persistence. Design/methodology/approach The authors use regression analysis to test two hypotheses. In the first hypothesis, the authors investigate whether firms audited by Big 4 auditors have a lower number of footnotes than firms audited by non-Big 4 auditors. In the second hypothesis, the authors show that the firms with more footnotes have less earning persistence in comparison to the firms with less footnotes. Findings The authors find that firms audited by Big 4 auditors have fewer footnotes than firms audited by non-Big 4 auditors, and a larger number of footnotes reduces earnings persistence one-year and two-years ahead of the financial statement, although a larger number of footnotes does not reduce earning persistence when firms use Big 4 auditors. Overall, firms that use non-Big 4 auditors tend to obfuscate annual reports by using more footnotes and, in turn, reduce earnings persistence. Originality/value This is the first paper that has used number of footnotes in 10Ks as a proxy for financial statement readability. This paper shows how auditors’ reputation plays a key role in the readability of the financial statement. Prior studies related to readability have ignored the importance of auditors’ quality with respect to the readability of financial statements.
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Chen, Lucy Huajing, David M. Folsom, Wonsun Paek, and Heibatollah Sami. "Accounting Conservatism, Earnings Persistence, and Pricing Multiples on Earnings." Accounting Horizons 28, no. 2 (November 1, 2013): 233–60. http://dx.doi.org/10.2308/acch-50664.
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SYNOPSIS We examine the effect of accounting conservatism on earnings persistence and the stock market's valuation of earnings. Using a sample of U.S. companies during the period of 1988–2010, we find that firms with more conservative accounting generate less persistent earnings than firms with less conservative accounting. We also document that the pricing multiple on more conservative earnings is smaller than pricing multiples on less conservative earnings. Finally, we show that conditionally conservative earnings are less persistent than unconditionally conservative earnings, and the pricing multiple on earnings is smaller for conditionally conservative earnings than for unconditionally conservative earnings. Our results improve our understanding of the characteristics of conservatively reported earnings. JEL Classifications: M41; C23; D21; G38; N20
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Hasnawati, Etty Murwaningsari, Harti Budi Yanti, and Suhendar. "DO WOMEN ON BOARD, RISK MANAGEMENT, INVESTMENT IN NON-CORE BUSINESS AND STRATEGIC CHOICES AFFECT EARNING PERSISTENCE? - CASE IN INDONESIA." Humanities & Social Sciences Reviews 7, no. 4 (September 27, 2019): 634–43. http://dx.doi.org/10.18510/hssr.2019.7483.
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Purpose of the study: The objectives of this research are (a) to determine association of gender diversity on boards of commissioners and boards of directors, risk management and infrastructure investment in non-core business to earnings persistence; (b) to find out whether strategy choices could moderate association of gender diversity of the board of commissioners and board of directors, risk management and infrastructure investment in non-core business to earnings persistence.
Methodology: This research used multiple regression with five years of observation (2011-2015) and used IBM SPSS statistic version 22 to test the hypotheses. The sampling technique was purposive sampling. The results obtained 79 companies from the selection that met the criteria and hence, the total observations are 395 samples.
Findings: This research found that gender diversity on board of directors had a positive effect on earning persistence and investment in non-core business had a negative impact on earning persistence. On the other hand, there was no direct effect of diversity gender on board of commissioners and risk management to earning persistence. However, when gender diversity on board of commissioners combined with the type of prospector strategy, it had a positive effect on earnings persistence, so did risk management.
Novelty/Originality: This study has a practical contribution to shareholders, investors, board, and academics. This paper underlines that women should be courageous to take part in the business either as a board of commissioners or directors, and the company should provide wider opportunities for women. An investor should carefully with the companies’ strategic choice. This study also has an empirical contribution to filling the literature gap of factors that influence the earnings persistence beyond financial factors. There are limited researches that examined earning persistence, which includes risk management, investment in non-core business infrastructure and strategy as variables.
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Hanlon, Michelle. "The Persistence and Pricing of Earnings, Accruals, and Cash Flows When Firms Have Large Book-Tax Differences." Accounting Review 80, no. 1 (January 1, 2005): 137–66. http://dx.doi.org/10.2308/accr.2005.80.1.137.
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I investigate the role of book-tax differences in indicating the persistence of earnings, accruals, and cash flows for one-period-ahead earnings. I also examine whether the level of book-tax differences influences investors' assessments of future earnings persistence. I find that firm-years with large book-tax differences have earnings that are less persistent than firm-years with small book-tax differences. Further, the evidence is consistent with investors interpreting large positive book-tax differences (book income greater than taxable income) as a “red flag” and reducing their expectation of future earnings persistence for these firm-years. I then investigate potential sources of the lower persistence for firm-years with large book-tax differences. I find that special items contribute in part to the results but that firm-years with large booktax differences continue to have lower persistence in earnings after controlling for the effect of the special items.
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Rachmawati, Nurul Aisyah. "Book-Tax Conformity dan Kualitas Laba." Journal of Research and Applications: Accounting and Management 1, no. 3 (March 30, 2016): 192. http://dx.doi.org/10.18382/jraam.v1i3.32.
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<p>Abstrak: Tujuan penelitian adalah untuk menganalisis pengaruh <em>book-tax conformity (BTC) </em>terhadap persistensi laba dan persistensi akrual. Penelitian ini menggunakan data panel tidak seimbang pada perusahaan manufaktur yang terdaftar pada Bursa Efek Indonesia tahun 2006-2011. Metode analisis data adalah regresi. Hasil menunjukkan bahwa perusahaan dengan BTC menunjukkan persistensi laba dan persistensi akrual?? yang lebih rendah dibandingkan perusahaan lain. Hal ini menunjukkan bahwa peningkatan BTC dapat mengurangi laba.</p><p><em>Abstract: The purpose of this research is to analyze the effect of book-tax conformity (BTC) on earning persistence and accrual persistence. This study uses unbalanced panel data of manufacturing companies listed in Indonesia Stock Exchange during 2006-2011, which then analysed based on regression analysis. The results show that companies which applied BTC indicate lower earning persistence and accrual persistence than other companies. This suggests that the increase in BTC might reduce earnings.</em></p>
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Sasongko, Yoga Joko, Siti Nur Azizah, Sri Wahyuni, and Ira Hapsari. "THE EFFECT OF EARNING VOLATILITY, INCOME SMOOTHING AND EARNING PERSISTENCE ON EARNINGS QUALITY." Review of Applied Accounting Research (RAAR) 1, no. 1 (September 10, 2021): 1. http://dx.doi.org/10.30595/raar.v1i1.11719.
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This study aims to examine the effect of earnings volatility, smoothing earnings and earningspersistence. The independent variables used in this study are earnings volatility, income smoothingand earnings persistence. The dependent variable used in this study is earnings quality. Themethod uses secondary data in annual reports or financial reports that have been published byIslamic banking companies listed on the Indonesia Stock Exchange for the period 2016-2019. Thesampling technique used in this study was purposive sampling, while the analysis used in this studywas multiple regression. The results of hypothesis testing showed that earnings volatility has apositive effect on earnings quality. Income smoothing has a positive effect on earnings quality.Earnings persistence does not affect earnings quality
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Khuong, Nguyen Vinh, Abdul Aziz Abdul Rahman, Pham Quoc Thuan, Nguyen Thanh Liem, Le Huu Tuan Anh, Cao Thi Mien Thuy, and Huynh Thi Ngoc Ly. "Earnings Management, Board Composition and Earnings Persistence in Emerging Market." Sustainability 14, no. 3 (January 18, 2022): 1061. http://dx.doi.org/10.3390/su14031061.
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Income data are useful for making economic decisions and anticipating future revenues. Earning quality, or the utility of earnings in making decisions, is determined by real economic performance. Firms with greater performance should, on average, have higher profits quality. Managers, investors, and scholars are interested in the influence of earnings management (EM) on earnings persistence (EP). This study evaluates the relationship between these variables in terms of accrual, real EM, board composition, and EP. We conducted quantitative research using GMM regression on a sample of 228 listed businesses in the Vietnamese stock market from 2014 to 2017. Our findings indicate that accrual earnings management (AEM) is associated with a negative connection with EP, but real earnings management (REM) is associated with a mixed association with EP. Additionally, the data indicate that board of directors (BODs) play a critical role in EP. Our research contributes to the existing body of knowledge by establishing a foundation for future research in this subject and by proposing some feasible options for functional government agencies and enterprise management interested in enhancing EP.
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Astuti, Diana Dwi, Wiwik Fitrianingsih, and Siti Maimunah. "Factors That Affecting Income Persistency With Accrual Reliability As Intervening Variables Of Industrial Companies That Listed On Stock Exchange Of Thailand." ABM : International Journal of Administration, Business and Management 2, no. 1 (December 6, 2020): 12–28. http://dx.doi.org/10.31967/abm.v2i1.387.
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This study aims to analyze the factors that affect earnings persistence with accrual reliability as an intervening variable at industrial companies that listed on the Stock Exchange Thailand in 2015-2019. The data that used in this research is secondary data. The research method that reseacher used is path analysis with SPSS version 24. Based on data analysis, the conclusion of this study are there is no significant effect of the independent variables (sales volatility, cash flow volatility, good corporate governance, debt level and company size) on accrual reliability. While the independent variable that affects earnings persistence are sales volatility and company size. The results of the path analysis are the accrual reliability variable can be used as an intervening variable of cash flow volatility, good corporate governance, and debt level on earnings persistence. While sales volatility and company size, accrual realibility can not used as intervening variable to earning persistence.
Keywords: Sales Volatility, Cash Flow Volatility, Good Corporate Governance, debt level, company size. Earning persistence
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Mariani, Desy, and Suryani Suryani. "Analisis Faktor Penentu Terjadinya Persistensi Laba pada Perusahaan Manufaktur di BEI." Jurnal Ilmiah Akuntansi Kesatuan 9, no. 3 (December 30, 2021): 575–88. http://dx.doi.org/10.37641/jiakes.v9i3.913.
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This study aims to analyze the factors that determine Earning Persistence. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2019 period. The sampling method used in this study is a purposive sampling method where according to the established criteria, 53 companies are obtained and the data used is secondary data. The analytical technique used in this study is multiple linear regression analysis using the Statistical Product and Service Solutions (SPSS) v.20.0 program. The results showed that Audit Fee and Cash Flow Volatility had a positive and significant effect on Earnings Persistence, Sales Volatility had a negative and significant effect on Earnings Persistence, Debt Level and Operating Cycle had no effect on Earning Persistence.
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Do, Nhung Hong, and Nha Van Tue Pham. "The Influence of Sustainable Earnings on Stock Price: Evidence from Publicly Listed Vietnamese Business Enterprises." Asian Academy of Management Journal of Accounting and Finance 16, no. 2 (December 23, 2020): 101–21. http://dx.doi.org/10.21315/aamjaf2020.16.2.5.
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Expected earnings and stock price are important determinants of investors’ decision. This research is conducted to estimate earnings persistence and examine the relationship between sustainable earnings on price-to-earning (P/E) ratio based on financial statements’ information of 631 publicly listed non-financial companies on Vietnam’s stock market, by using Ordinary Least Squares (OLS) and Logit function. The results show that earnings persistence depends on net operating assets growth, profit margin changes, operating asset turnover changes and past profitability. Besides, both the sustainable and unsustainable components of earnings growth are proved to empirically affect P/E ratio, even though investors underreact to sustainable earnings and overreact to unsustainable earnings. This study helps to improve investors’ perception of their future earnings, investment value and companies’ sustainable growth, particularly in the context of developing stock market of Vietnam which is full of market anomalies.
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Kormendi, Roger, and Robert Lipe. "Earnings Innovations, Earnings Persistence, and Stock Returns." Journal of Business 60, no. 3 (January 1987): 323. http://dx.doi.org/10.1086/296400.
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Kean, Stephen, and Peter Wells. "Earnings Decomposition and the Persistence of Earnings." Accounting Research Journal 20, no. 2 (December 2007): 111–27. http://dx.doi.org/10.1108/10309610780000696.
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Martins, Orleans Silva, Raíssa Aglé Moura de Sousa, and Luiz Felipe de Araújo Pontes Girão. "Dividend persistence and earnings management in emerging markets." Revista Contabilidade & Finanças 33, no. 88 (April 2022): 130–49. http://dx.doi.org/10.1590/1808-057x202113040.
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ABSTRACT We investigate the relationship between dividend persistence and earnings management, considering the levels of economic performance and risk in emerging countries. Earnings are important for valuation models and dividends have evidence that suggests greater persistence, however, there is no evidence on the effect of earnings management on dividend persistence in emerging countries. Despite the substantial growth of emerging markets in the last decades, the degree of informational efficiency and the legal protection for investors is inferior to developed countries, and this is a potential risk for investors who prefer to receive dividends as a way of avoiding expropriation by managers who can manage the firms’ earnings. We show that the reduction in macroeconomic volatility and the uncertainties concerning a country’s performance and risk improve dividend persistence. Thus, even in the face of earnings manipulations, dividends are better inputs for valuation models. Using the persistence models of Dechow and Schrand (2004) and Lintner (1956), we interact the dividend persistence with firms’ earnings management and some indicators of a country’s economic performance and risk for 7,536 publicly traded firms from 20 countries, included in the Morgan Stanley Capital International (MSCI) Emerging Markets Index from 2000 to 2016. We find that in emerging countries dividends are more persistent than earnings. If a company pays United States dollars (USD) 1.00 in dividends, then, on average, US$ 0.89 will persist into next year’s dividends (for earnings, only US$ 0.76 persists). We find that, in addition to the past dividends and current earnings presented by Lintner (1956), current dividends are a function of earnings management volume because this event reduces dividend persistence.
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Dawar, Varun. "Earnings persistence and stock prices: empirical evidence from an emerging market." Journal of Financial Reporting and Accounting 12, no. 2 (September 30, 2014): 117–34. http://dx.doi.org/10.1108/jfra-06-2013-0044.
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Purpose – This study aims to investigate the persistence ability of accounting variables, namely, abnormal earnings, book value, accruals and cash flows over a period of time and their valuation relevance in Indian scenario. Design/methodology/approach – The study utilizes the generalized version of the Ohlson model which links market prices with abnormal earnings, book value and earning components (accruals and cash flows). Fixed-effect panel data regression is used to analyze six years of data on the sample units to determine the persistence and valuation relevance. Findings – The findings provide evidence on the construct of persistence and value relevance of earnings and book value of equity in the Indian context. The findings further confirm that investors in India are fixated on earnings and fail to attend separately to the cash flow and accrual components of earnings while undertaking their investment decisions. Practical implications – The empirical findings of the study will enable the analysts and investors to understand the relevance and persistence of accounting variables in case of an emerging market like India. Originality/value – The study extends the extant literature on value relevance studies in developed markets to an emerging market like India and enriches it in several ways.
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Baber, William R., Sok-Hyon Kang, and Krishna R. Kumar. "The Explanatory Power of Earnings Levels vs. Earnings Changes in the Context of Executive Compensation." Accounting Review 74, no. 4 (October 1, 1999): 459–72. http://dx.doi.org/10.2308/accr.1999.74.4.459.
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Studies in the capital market context indicate that earnings changes and earnings levels considered jointly provide a more comprehensive representation of unexpected earnings than either earnings changes or earnings levels considered alone. Recent studies of executive compensation demonstrate that executive compensation revisions are greater when earnings innovations are permanent, than when innovations are transitory. Together, these literatures imply that both earnings changes and earnings levels explain revisions to CEO compensation. Specifically, formal analysis implies that weights on earnings changes vary directly with the persistence of earnings innovations and that weights on earnings levels vary directly with persistence for low persistence observations and inversely with persistence for high persistence observations. Evidence for compensation to 712 executives of U.S. corporations is consistent with these expectations. Such results suggest that earnings levels, earnings changes, and earnings persistence need to be considered when investigating relations between accounting earnings and executive compensation.
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Suparsono, Sumiadji, Grahita Chandrarin, and Edi Subiyantoro. "Effect of Audit Quality on Earnings Quality: Evidence From Indonesia Stock Exchange." International Journal of Financial Research 10, no. 1 (November 18, 2018): 86. http://dx.doi.org/10.5430/ijfr.v10n1p86.
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This research was conducted to test the effect of audit quality on earnings quality. Its observed data consisted of 116 annual data of manufacturing companies listed in the Indonesia Stock Exchange within 2011-2014. The proxies of audit quality are auditor size, audit tenure and audit specialization. The earnings quality was formed from the attributes of accrual quality, persistence, predictability, and income smoothing. The analysis techniques for this research involved (1) an confirmatory factor analysis to form the earnings quality and (2) multiple regression analysis to test the effect of the auditor size, audit tenure and audit specialization on earnings quality. Analysis results showed that earnings quality is formed by the attributes of persistence and predictability. Research results showed that auditor size and audit tenure have effect on earning quality, while audit specialization do not.
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Madan, Sonu, and Surender Mor. "Is Gender Earnings Gap a Reality? Signals from Indian Labour Market." Statistika: Statistics and Economy Journal 102, no. 2 (June 17, 2022): 168–83. http://dx.doi.org/10.54694/stat.2021.19.
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We examined the persistence of the gender earnings gap across diverged occupational groups and the workers owning diverged work status in India using the relevant information on 94 446 workers from the Periodic Labour Force Survey (2017–18). The marginal mean earning of workers is estimated using GLM: ANCOVA. The findings report the persistence of significant gender earnings gap across the occupational structure and work status of workers. The elimination of demotivating factors leading to the gender earnings gap, removal of gender discrimination, enhancing the self-esteem of females, raising productivity potential by augmenting the professional/vocational education and policies for increased female work participation is the need of the hour.
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Li, Feng. "Annual report readability, current earnings, and earnings persistence." Journal of Accounting and Economics 45, no. 2-3 (August 2008): 221–47. http://dx.doi.org/10.1016/j.jacceco.2008.02.003.
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Awaludin, Wawan, and Darmansyah Darmansyah. "Peran Komite Audit sebagai Pemoderasi Atas Determinan Persistensi Laba Perusahaan Pertambangan." Jurnal Riset Akuntansi & Perpajakan (JRAP) 5, no. 02 (December 3, 2018): 230–44. http://dx.doi.org/10.35838/jrap.2018.005.02.20.
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ABSTRACT
This study aims to examine operational cash flows, debt levels, and firm size against earnings persistence, in moderation with an audit committee. Samples are 25 mining companies listed on the Indonesia Stock Exchange for 5 years. The results of the study prove that operational cash flows, debt levels have a significant effect on earnings persistence, firm size has a negative effect on earnings persistence. The committee of committee can moderate the effect of cash flow on earnings persistence. The audit committee cannot moderate the influence of the level of debt and company size on earnings persistence. The results of the study are expected to be a consideration for investors in investing in the capital market. Decision-making should be based on financial ratios, among others, operational cash flow, debt level and company size, and for issuers expected in business expansion must consider financial ratios, including operational cash flow, debt level and company size.
ABSTRAK
Penelitian ini bertujuan untuk menguji arus kas operasional, tingkat hutang, dan ukuran perusahaan terhadap persistensi laba, di moderasi dengan audit committee. Sampel adalah 25 perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia selama 5 tahun. Hasil penelitian membuktikan bahwa arus kas operasional, tingkat hutang berpengaruh signifikan terhadap persistensi laba, ukuran perusahaan berpengaruh negatif terhadap persistensi laba. Komite uadit dapat memoderasi pengaruh arus kas terhadap persistensi laba. Komite audit tidak dapat memoderasi pengaruh tingkat hutang dan ukuran perusahaan terhadap persistensi laba. Hasil penelitian diharapkan dapat menjadi pertimbangan bagi investor dalam melakukan investasi di pasar modal. Pengambilan keputusan seharusnya didasarkan pada rasio keuangan, antara lain, arus kas operasional, tingkat hutang dan ukuran perusahaan, dan bagi emiten diharapkan dalam ekspansi usaha wajib mempertimbangkan rasio keuangan antara lain arus kas operasional, tingkat hutang dan ukuran perusahaan.
JEL Classification: M41, O16
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Awaludin, Wawan, and Darmansyah Darmansyah. "Peran Komite Audit sebagai Pemoderasi Atas Determinan Persistensi Laba Perusahaan Pertambangan." Jurnal Riset Akuntansi & Perpajakan (JRAP) 5, no. 02 (December 3, 2018): 230–44. http://dx.doi.org/10.35838/jrap.v5i02.188.
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ABSTRACT
This study aims to examine operational cash flows, debt levels, and firm size against earnings persistence, in moderation with an audit committee. Samples are 25 mining companies listed on the Indonesia Stock Exchange for 5 years. The results of the study prove that operational cash flows, debt levels have a significant effect on earnings persistence, firm size has a negative effect on earnings persistence. The committee of committee can moderate the effect of cash flow on earnings persistence. The audit committee cannot moderate the influence of the level of debt and company size on earnings persistence. The results of the study are expected to be a consideration for investors in investing in the capital market. Decision-making should be based on financial ratios, among others, operational cash flow, debt level and company size, and for issuers expected in business expansion must consider financial ratios, including operational cash flow, debt level and company size.
ABSTRAK
Penelitian ini bertujuan untuk menguji arus kas operasional, tingkat hutang, dan ukuran perusahaan terhadap persistensi laba, di moderasi dengan audit committee. Sampel adalah 25 perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia selama 5 tahun. Hasil penelitian membuktikan bahwa arus kas operasional, tingkat hutang berpengaruh signifikan terhadap persistensi laba, ukuran perusahaan berpengaruh negatif terhadap persistensi laba. Komite uadit dapat memoderasi pengaruh arus kas terhadap persistensi laba. Komite audit tidak dapat memoderasi pengaruh tingkat hutang dan ukuran perusahaan terhadap persistensi laba. Hasil penelitian diharapkan dapat menjadi pertimbangan bagi investor dalam melakukan investasi di pasar modal. Pengambilan keputusan seharusnya didasarkan pada rasio keuangan, antara lain, arus kas operasional, tingkat hutang dan ukuran perusahaan, dan bagi emiten diharapkan dalam ekspansi usaha wajib mempertimbangkan rasio keuangan antara lain arus kas operasional, tingkat hutang dan ukuran perusahaan.
JEL Classification: M41, O16
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Dewata, Evada, Yuliana Sari, and Eka Jumarni Fithri. "Kepemilikan Manajerial dan Institusional sebagai Determinan Struktur Modal dan Persistensi Laba." Journal of Research and Applications: Accounting and Management 1, no. 3 (March 30, 2016): 223. http://dx.doi.org/10.18382/jraam.v1i3.59.
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<p class="Default">Abstrak: Penelitian ini bertujuan mengkaji pengaruh kepemilikan manajerial dan kepemilikan institusional terhadap struktur modal dan implikasinya terhadap persistensi laba perusahaan. Sampel penelitian ini adalah 60 perusahaan selama periode tahun 2012-2014 dengan metode <em>purposive sampling</em>, selanjutnya data diolah menggunakan analisis regresi berganda dan data panel pada Eviews 9. Hasil penelitian ini menunjukkan terdapat pengaruh negatif signifikan kepemilikan manajerial dan kepemilikan institusional secara parsial terhadap struktur modal, dan secara simultan kepemilikan manajerial dan kepemilikan institusional berpengaruh signifikan terhadap struktur modal. Selanjutnya terdapat pengaruh positif signifikan kepemilikan manajerial terhadap persistensi laba, tidak terdapat pengaruh signifikan kepemilikan institusional terhadap persistensi laba, dan terdapat pengaruh negatif signifikan struktur modal terhadap persistensi laba. Secara simultan, kepemilikan manajerial, kepemilikan institusional dan struktur modal berpengaruh signifikan terhadap persistensi laba.</p><p><em>Abstract: This study aimed to assess the effect of managerial ownership and institutional ownership of the capital structure and the implications for corporate earnings persistence. The research sample consist of 60 companies during the period 2012 to 2014 based purposive sampling method, then the data was analysed using multiple regression analysis and research panel data by Eviews 9. The results of this study showed that there was a significant negative effect of managerial ownership and institutional ownership partially on capital structure, and simultaneous possession of managerial and institutional ownership has a significant effect on capital structure. Furthermore, there is a significant positive effect of managerial ownership on earnings persistence, there is no significant effect of institutional ownership on earnings persistence, and there is a significant negative effect of earnings persistence on the capital structure. Simultaneously, managerial ownership, institutional ownership and capital structure significantly influence the persistence of earnings.</em></p>
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Tee, Chwee Ming, and Puspavathy Rasiah. "Earnings persistence, institutional investors monitoring and types of political connections." Asian Review of Accounting 28, no. 3 (April 10, 2020): 309–27. http://dx.doi.org/10.1108/ara-05-2019-0112.
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PurposeThe purpose of this study is to examine whether institutional investors monitoring attenuate (exacerbate) weaker earnings persistence in politically connected firms (PCFs). In addition, it investigates whether earnings persistence do vary according to different types of political connections.Design/methodology/approachThis study employs earnings persistence as measure of earnings quality and ordinary least squares (OLS) model to examine: (1) the moderating effect of institutional investors’ ownership on the association between earnings persistence and PCFs and (2) the association between different types of political connections and earnings persistence.FindingsThis study finds that institutional investors' ownership attenuates weaker earnings quality in PCFs, indicating effective monitoring. However, stronger earnings persistence is associated with PCFs with longer political ties, audited by big four audit firm and with higher CEO power.Originality/valueThis study reveals the lower earnings persistence in PCFs can be attenuated by institutional investors monitoring. However, findings also suggest that earnings persistence in PCFs is affected by duration of political ties, big four audit firm and CEO power. This suggests that PCFs should not be viewed as a homogeneous group of firms.
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Abdullah, Muhammad Wahyuddin. "KEMAMPUAN AKRUAL DAN ARUS KAS MEMPREDIKSI HARGA SAHAM MELALUI PERSISTENSI LABA." EKUITAS (Jurnal Ekonomi dan Keuangan) 15, no. 3 (February 8, 2017): 352. http://dx.doi.org/10.24034/j25485024.y2011.v15.i3.2299.
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The objective of research seems to examine the effect of accrual and cash flow components in predicting earnings persistence. Research also aims at observing the effect of earnings persistence on stock prices, understanding the effect of accrual and cash flow components in predicting stock prices through earnings persistence. Hypotheses test considers contextual model and path analysis to connect the models in manner of causality. Research population includes manufacturing companies listed at Indonesia Stock Exchange in the financial reporting period 1999-2007. Judgment sampling criteria has been used to produce 51 companies with 5 observations for each company, resulting in data pooling of 255 companies. Empirical two model examination produces the probability of significant effect on endogenous variable, which is earnings persistence and stock prices. Individually, accrual and cash flow components have significant effect in predicting earnings persistence, earnings persistence as sustainable earnings prospect have shown significant effect on stock prices. The examination against accrual component ability in predicting stock prices indicates the coefficient of earnings persistence path as a significant mediator. The observation against cash flow component ability in predicting stock prices, however, does not show the coefficient of earnings persistence path as the significant mediator
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Abdullah, Muhammad Wahyuddin. "KEMAMPUAN AKRUAL DAN ARUS KAS MEMPREDIKSI HARGA SAHAM MELALUI PERSISTENSI LABA." EKUITAS (Jurnal Ekonomi dan Keuangan) 15, no. 3 (September 25, 2018): 352–69. http://dx.doi.org/10.24034/j25485024.y2011.v15.i3.373.
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The objective of research seems to examine the effect of accrual and cash flow components in predicting earnings persistence. Research also aims at observing the effect of earnings persistence on stock prices, understanding the effect of accrual and cash flow components in predicting stock prices through earnings persistence. Hypotheses test considers contextual model and path analysis to connect the models in manner of causality. Research population includes manufacturing companies listed at Indonesia Stock Exchange in the financial reporting period 1999-2007. Judgment sampling criteria has been used to produce 51 companies with 5 observations for each company, resulting in data pooling of 255 companies. Empirical two model examination produces the probability of significant effect on endogenous variable, which is earnings persistence and stock prices. Individually, accrual and cash flow components have significant effect in predicting earnings persistence, earnings persistence as sustainable earnings prospect have shown significant effect on stock prices. The examination against accrual component ability in predicting stock prices indicates the coefficient of earnings persistence path as a significant mediator. The observation against cash flow component ability in predicting stock prices, however, does not show the coefficient of earnings persistence path as the significant mediator.
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Park, Sorah, and Heejeong Shin. "Earnings Persistence Over The Macroeconomic Cycle: Evidence From Korea." Journal of Applied Business Research (JABR) 31, no. 6 (October 28, 2015): 2147. http://dx.doi.org/10.19030/jabr.v31i6.9473.
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This paper examines whether the persistence of earnings components is affected by the macroeconomic cycle in Korea. To measure the macroeconomic cycle, we use the cycle variation value of Coincident Composite Index (CCI) data obtained from the Korea National Statistics Office. Results from a sample of 21,232 firm-quarter observations over the period 2002-2013 indicate that accruals (cash flows) are more persistent than cash flows (accruals) during expansions (recessions). Also, when going from an expansion to a recession, a decline in accruals persistence is greater than that in cash flows persistence. When total accruals are decomposed into non-discretionary and discretionary portions using the modified Jones model (Dechow et al., 1995), we find that non-discretionary accruals are most persistent than the other components during both expansions and recessions, and a decline in persistence is largest (smallest) for discretionary accruals (cash flows) when going from an expansion to a recession. Most of these results hold when we split the macroeconomic cycle into four phases including transitory periods. Taken together, we provide evidence on the differential effects of macroeconomic cycle on the persistence of individual earnings components in Korea. Our findings suggest that macroeconomic variables are needed to be considered in studies on earnings persistence.
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Gunawan, Ardela Soehartinah, Icih Icih, and Trisandi Eka Putri. "DETERMINANTS OF EARNING PERSISTENCE." ACCRUALS (Accounting Research Journal of Sutaatmadja) 4, no. 01 (April 22, 2020): 104–19. http://dx.doi.org/10.35310/accruals.v4i01.410.
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This study aims to determine the effect of firm size, leverage, managerial ownership, listing age and audit committee on earnings persistence. The data used is data on banking companies listed on the Indonesia Stock Exchange (IDX) period 2015-2017. The sample selection uses a purposive sampling method. The samples that fit the criteria were 29 companies during the 2015-2017 observation period, so that the final number of observational data was 87 (3 × 29). Then data were analyzed using the SPSS 22 application.The results of this study indicate that firm size, managerial ownership and listing age do not affect earnings persistence. While leverage and audit committees negatively affect earnings persistence. Variables of company size, leverage, managerial ownership, listing age and audit committee jointly influence the persistence of earnings.
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Viriany, Elza Olivia,. "Pengaruh Akrual, Arus Kas Operasi, Leverage, Dan Ukuran Perusahaan Terhadap Persistensi Laba." Jurnal Paradigma Akuntansi 3, no. 4 (November 12, 2021): 1379. http://dx.doi.org/10.24912/jpa.v3i4.14934.
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The purpose of this research is to examine the effect of accruals, operating flow, leverage, and company size on earnings persistence of manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. The sample used in this research were 59 companies. The research used purposive sampling method and data processing techniques using multiple regression analysis what helped by the EViews program version 10. The results showed that the accrual variable has a negative and significant effect on earnings persistence, the operating cash flow variable has a negative and insignificant towards earnings persistence, the leverage variable has a negative and insignificant effect on earnings earnings persistence, and firm size variable has a negative and significant effect on earnings persistence.
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Hsu, Pei-Hui, and Xuesong Hu. "Advisory Board and Earnings Persistence." Journal of Accounting, Auditing & Finance 31, no. 1 (March 8, 2015): 134–57. http://dx.doi.org/10.1177/0148558x15571733.
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Ashley, Allan S., and Simon S. M. Yang. "Executive Compensation and Earnings Persistence." Journal of Business Ethics 50, no. 4 (April 2004): 369–82. http://dx.doi.org/10.1023/b:busi.0000025031.81884.ed.
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Andini, Corrado. "Earnings persistence and schooling returns." Economics Letters 118, no. 3 (March 2013): 482–84. http://dx.doi.org/10.1016/j.econlet.2012.12.025.
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., Suwarno. "The Effect of Earnings Management and Earnings Persistence on Earnings Response Coefficient: Evidence from Indonesia." Journal of Social Science Studies 6, no. 1 (October 12, 2018): 59. http://dx.doi.org/10.5296/jsss.v6i1.13363.
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This study aims to examine the effect of earnings management and earnings persistence on earnings response coefficient. The sample of research is consumer sector company period 2013 - 2016 which listed in Indonesia stock exchange. The results showed that earnings management had a negative effect not significant on the income response coefficient. The earnings management will reduce the quality of earnings that will negatively reacted investors. While earnings persistence positive effect on earnings response coefficient.
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Ariyani, Dian, and Rosita Wulandari. "PENGARUH BOOK TAX DIFFERENCES DAN ARUS KAS TERHADAP PERSISTENSI LABA (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI)." KEBERLANJUTAN 2, no. 2 (January 23, 2018): 574. http://dx.doi.org/10.32493/keberlanjutan.v2i2.y2017.p574-563.
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Abstract This study aims to determine the effect of book tax differences and cash flow on earnings persistence. The population in this study is a manufacturing company listed on the Indonesia Stock Exchange 2010-2015. Sampling technique in this research is done by purposive sampling method. Pursuant to purposive sampling method, sample obtained counted 24 company. The type of this research is associative research using quantitative method. The analytical method used to test the influence of book tax differences and cash flow to earnings persistence is multiple regression method with the help of software SPSS version 22. The results showed that partially, permanent differences significantly negatively affect earnings persistence, temporary differences negatively significant effect on persistence Profit, and cash flow have a significant positive effect on earnings persistence. The results of the study simultaneously show that if the permanent differences, temporary differences and cash flows have a significant effect on earnings persistence. Keywords: Permanent Differences, Temporary Differences, Cash Flow, Earnings Persistence