IOS AND OTHER FINANCIAL RATIOS THAT AFFECT THE EARNINGS QUALITY
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Date
2024-02-20
Authors
Widjaja, Kevin
Journal Title
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Publisher
Sekolah Tinggi Ilmu Ekonomi Trisakti
Abstract
The objective of this research is to obtain empirical evidence of the influence of investment opportunity set, leverage, liquidity, profitability, cash holding, and profit growth on earnings quality.
This research uses consumer cyclical and non-cyclical as the population as listed on Indonesia Stock Exchange (IDX) from the year 2019 up to 2022. The sampling method used for this research is purposive sampling. There are sixtyeight (68) companies using purposive sampling method consisting of forty-one (41) consumer cyclical companies and twenty-seven (27) consumer non-cyclical companies. The total amount of data reaches 204. After outlier the companies are down to sixty-five (65) companies with 195 data.
This research uses multiple regression methods to process the data obtained. The result of the regression indicates that investment opportunity set, leverage, and cash holding has influence towards the earnings quality. On the other hand, liquidity, profitability, and profit growth have no influence on the earnings quality.