The Effect of Auditor Industry Specialization, Earnings Persistence, and Corporate Social Responsibility Disclosure on Earning Response Coefficients
Yusnia Rahmah Afianti, Rida Prihatni, Dwi Handarini

Jurusan Akuntansi, Fakultas Ekonomi, Universitas Negeri Jakarta

Abstract

Earning is accounting information that is often the center of attention of users of financial statements. there are several indicators of the health of company earnings, one of which is the earnings response coefficient (ERC). This quantitative study aims to examine the effect of auditor industry specialization, earnings persistence, and corporate social responsibility disclosure on ERC in manufacturing companies listed on the Indonesia Stock Exchange for the period 2018 - 2021. The research sample consisted of 165 observations selected by purposive sampling technique which were analyzed with panel data regression using the E-Views 12 application. The results of this research are auditor industry specialization and earnings persistence have no effect on the earnings response coefficient, while corporate social responsibility disclosure has a positive effect on the earnings response coefficient. This indicates that investors respond to company social responsibility disclosure through stock prices which have an impact on increasing ERC.

Keywords: Earnings Response Coefficient (ERC), Auditor Industry Specialization, Earnings Persistence, Corporate Social Responsibility Disclosure

Topic: Accounting