Overview

Original Research

EARNINGS QUALITY FACTORS AND FIRM'S VALUE IN INDONESIAN MANUFACTURING DURING COVID-19

KAMPONO IMAM YULIANTO 1, THORMAN LUMBANRAJA 2, ZARA TANIA RAHMADI 3, T.HUSAIN 4, and LUQMAN HAKIM 5.

Vol 19, No 10 ( 2024 )   |  DOI: 10.5281/zenodo.13937873   |   Author Affiliation: Institut Bisnis dan Informatika Kosgoro 1957 1,3; STIE Surya Nusantara Pematang Siantar 2; Faculty of Economics and Business - University of Persada Indonesia Y.A.I- Jakarta 4,5.   |   Licensing: CC 4.0   |   Pg no: 181-200   |   Published on: 08-10-2024

Abstract

This study aims to test the relevance of financial ratios and other factors as determinants of earnings quality and their impact on firm value in the manufacturing industry sector during the Covid-19 pandemic period. The various financial ratios tested are liquidity, activity and solvency, while other factors include intellectual capital, and audit quality. This type of research uses a quantitative approach and uses a cross-section data panel of sixty-seven companies and a three-year time series of the Covid-19 period. The analysis of the research data uses a fixed effect model from the results of the Chow and Hausman test. The results of this study are in addition to the results of hypotheses 6, 9 and 10 are accepting the alternative hypothesis and finding that the various financial ratios tested along with other factors have a determinant relevance to earnings quality in manufacturing companies listed on the IDX. However, these results did not occur in relation to firm value.

Keywords

Earnings Quality, Firm’s Value, Financial Ratio’s, Conditional Revenue Model.