15Apr 2019

THE EFFECT OF DEBT LEVEL, SALES VOLATILITY, AND TEMPORARY DIFFERENCES TO EARNINGS QUALITY.

  • Magister of Accounting, Faculty of Economics and Business, Hasanuddin University, Indonesia.
  • Department of Accounting, Faculty of Economics and Business, Hasanuddin University, Indonesia.
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The research aimed to discuss the determinants factors of earnings quality in Indonesia capital market. Those factors were debt level, sales volatility, and temporary differences. The earnings quality was measured using attributes are smoothness and Earnings Response Coefficient (ERC). The research employed the secondary data in the form of financial statement of company, stock prices of company, and composite stock prices index starting from 2015 until 2017. This research was analysed using multiple regression analysis with IBM SPSS Statistics 21 program. The result of the testing showed that debt level and sales volatility had a significant effect with earnings quality measured using smoothness? attributes. But, the result of the testing earnings quality measured using ERC attributes, showed that there was no independent variable had significant effect.

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[Anita Holly, Andi Kusumawati And Nirwana. (2019); THE EFFECT OF DEBT LEVEL, SALES VOLATILITY, AND TEMPORARY DIFFERENCES TO EARNINGS QUALITY. Int. J. of Adv. Res. 7 (Apr). 1337-1341] (ISSN 2320-5407). www.journalijar.com

Anita Holly
Hasanuddin University

DOI:

Article DOI: 10.21474/IJAR01/8958      
DOI URL: https://dx.doi.org/10.21474/IJAR01/8958

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