The Effect of Earnings Aggressiveness, Income Smoothing, Earnings Transparency on Cost of Equity with Earnings Informativeness As Moderating For Companies Listed on Indonesia Stock Exchange During The Period 2011-2013
GSTF Journal on Business Review
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Title |
The Effect of Earnings Aggressiveness, Income Smoothing, Earnings Transparency on Cost of Equity with Earnings Informativeness As Moderating For Companies Listed on Indonesia Stock Exchange During The Period 2011-2013
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Creator |
Sunarto, Herry
Murwaningsari, Etty Mayangsari, Sekar |
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Description |
This study aims to demonstrate empirically theeffect of earnings aggressiveness, income smoothing, andearnings transparency on the cost of equity with earningsinformativeness as moderating. The purpose of thisresearch paper is to contribute an additional form ofbuilding knowledge about the cost of equity to provideempirical evidence that is more comprehensive inassociation with earnings aggressiveness, incomesmoothing, earnings transparency, and earningsinformativeness.The test was conducted using secondary data fromfinancial statement data. The data sample was taken from209 entities listed on the Indonesia Stock Exchange unlessthe company was in addition to property and financialsector for the period 2011 to 2013 and was processed usingmultiple regression models.The methodology of this research is quantitativewith the aim to see whether there are any relationshipsbetween variables. The results show that earningsaggressiveness and income smoothing have positiveinfluences on the cost of equity, while earningtransparency has a negative result against the samevariable. When earning informativeness, the moderatingvariable, is added to the three relationships, it brings inthree different conclusions. First, the moderation weakensthe positive relationship between earning aggressivenessand cost of equity. Second, the moderation strengthens thenegative relationship between earnings transparency andcost of equity. And at last, the moderation does not havesignificance towards income smoothing and cost of equity.
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Publisher |
GSTF Journal on Business Review (GBR)
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Date |
2018-01-04
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://dl6.globalstf.org/index.php/gbr/article/view/869
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Source |
GSTF Journal on Business Review (GBR); Vol 4 No 4 (2016): GSTF Journal on Business Review (GBR)
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Language |
eng
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Relation |
http://dl6.globalstf.org/index.php/gbr/article/view/869/803
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Rights |
Copyright (c) 2016 GSTF Journal on Business Review (GBR)
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