Paper Details
Title Determinants of Earnings Response Coefficient (ERC) and its Impact on Trading Volume
AuthorsHERNI KURNIAWATI and SUSI DWIMULYANI
Abstract

The study aims to prove whether the factors that influence the quality of corporate profits, as measured by earnings response coefficient, also can affect the level of trading volume in the stock market. This study differs from previous research in which only examine the factors which consist of the company's growth, systemic risk, and the persistence of earnings to the earnings response coefficient. While this study wanted to know and prove that the factors which consist of the company's growth, systemic risk, and the persistence of earnings can also affect the level of trading volume, both descend and ascend. By looking at the information on the level of trading volume, the prospective investor / investors can ensure that stock companies listed on the stock exchange market is not sleeping, because for novice investors invest in stocks beds provide a sense of worry if the money they get caught in the bed stock so it can not withdraw funds if needed quickly. Research using panel data regression analysis with a sample period of 2012-2016 unlisted manufacturing companies in Indonesia Stock Exchange. Results of the study (1) The company's growth negatively affect earnings response coefficient; (2) Systematic risk has a positive effect on the earnings response coefficient (3) The persistence of earnings positive effect on earnings response coefficient; (4) Earnings response coefficient negatively affect the volume of stock trading; (5) The company's growth directly affects the volume of stock trading; (6) Systematic risk no direct impact on the volume of stock trading; (7) The persistence of income directly affects the volume of stock trading. It can be concluded that the earnings response coefficient can be a mediating variable connecting factors that affect earnings response coefficient of the level of trading volume. Keywords: The Company’s Growth, Systematic Risk, Earnings Persistence, Earnings Response Coefficient, Share Trafficking Volume Level.

Pages 787-800
Volume 7
Issue 4
Part 1
File Name Download (1831)
DOI/AUN 10.30543/7-4(2018)-2

Facebook