DOI: 10.5176/2251-1997_AF16.80
Authors: Herry Sunarto, Etty Murwaningsari and Sekar Mayangsari
Abstract:
This study aimed to examine the effect of the earnings aggressiveness, income smoothing, and the earnings transparency to the cost of equity with earnings informativeness as moderating for the purpose of this research is expected to contribute an additional form of building knowledge about the cost of equity to provide empirical evidence that more comprehensive for his association with the earnings aggressiveness, income smoothing, earnings transparency, and earnings informativeness. Test is using secondary data from financial statement data. The data sample was used 209 entities listed in the Indonesia Stock Exchange unless the company in addition to property and financial sector for the period 2011 to 2013 and processed using a multiple regression model. The methodology of this research using casuality research with quantitative methods with the aim to see whether there is any relationship between variables. The results showed that earnings aggressiveness has positive influence on the cost of equity, income smoothing no significant effect on the cost of equity, earnings transparency have a positive effect on the cost of equity. Earnings informativeness that acts as a moderating variable weaken the positive relationship between the earnings aggressiveness to the cost of equity, and earnings in formativeness strengthen the positive relationship the earnings transparency to the cost of equity. While the earnings informativeness as moderating variable between incomes smoothing of the cost of equity is not significant.
Keywords: earnings aggressiveness, income smoothing, earnings transparency, cost of equity, and earnings informativeness.
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