Role of Independent Commissioner in Moderating Factors That Affect Earnings Response Coefficient

Abstract

This research aims to examine the influence of Corporate Social Responsibility (CSR), accounting conservatism, growth opportunities, and default risk on Earnings Response Coefficient (ERC) with independent commissioners as moderating variables. The population of this research is the manufacturing companies in IDX in 2016-2018. Sampling techniques was conducted using purposive sampling methods and obtained 59 companies with 114 units of analysis. The analytical method used is moderation regression analysis with absolute difference value test. The results showed that CSR has a positive effect on ERC, and default risk has a negative effect on ERC, while accounting conservatism and growth opportunities have no significant effect on the ERC. The presence of an independent commissioner is able to strengthen the influence of growth opportunities on the ERC but is unable to moderate the effect of CSR, accounting conservatism, and default risk on the ERC. The conclusion from this research is that ERC will increase if CSR increases and will decrease if there is a high default risk in the company. Independent commissioners have an important role in supporting the relationship between growth opportunities and ERC.

Düzenleyici Değişken Olarak Yönetim Kurulu Çeşitliliği ile Kurumsal Sosyal Sorumluluk Açıklamasının Değer Uygunluk Analizi

“…This shows a value relevance of the disclosure of corporate responsibility, as seen from the market reaction to the information presented in the report. However, in a study conducted by Azizah et al (2021); Homan (2011); Wulandari & Adiati (2016), the disclosure of corporate responsibility has no relevant value seen from the absence of a significant market reaction after the company made the disclosure. This shows that the disclosure of information presented by the company, especially those related to corporate responsibility, does not affect the influence of the market.…”

Analisis Nilai Relevansi Pengungkapan Corporate Social Responsibility Dengan Diversitas Direksi Sebagai Variabel Moderasi

“…Hal ini menunjukan bahwa adanya relevansi nilai dari pengungkapan tanggungjawab perusahaan yang dilihat dari reaksi pasar akan informasi yang disampaikan dalam laporan tersebut. Namun, dalam penelitian yang dilakukan oleh (Azizah et al, 2021;Homan, 2018), pengungkapan tangggung jawab perusahaan tidak mempengaruhi Earning response coefficient perusahaan sehingga tidak memiliki nilai relevansi akuntansi didalamnya. Hal ini menunjukan bahwa pengungkapan informasi yang dipaparkan perusahaan khususnya yang berkaitan dengan tanggungjawab perusahaan tidak mempengaruhi pengaruh pasar.…”

Effect of CSR, Financial Distress, and Corporate's Growth on Earning Response Coefficient

“…Conversely, if unexpected income has a negative direction, then the average abnormal rate of return will be negative. Azizah et al (2021) stated that the lowvalue ERC indicates that earnings information is less informative for investors in making decisions so that at the time of publication of earnings information, most investors tend to be less responsive to the earnings presented. On the other hand, the high value of ERC indicates that earnings announced by companies are informative for investors in deciding so that most investors will respond positively to earnings presented by the company.…”