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Abstract:
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This research is motivated by the renewal of financial statements into
integrated reporting which causes various reactions from investors, so that many
factors make integrated reporting disclosures high which causes high earnings
response coefficients. This study aims to examine empirically the effect of audit
quality and profitability on earnings response coefficient with integrated reporting
as an intervening variable. The independent variables in this study are audit quality
as measured by KAP reputation and profitability as measured by Return On Assets
(ROA). The dependent variable used is the earnings response coefficient which is
measured using the regression results between cumulative abnormal returns and
unexpected earnings. Meanwhile, the intervening variable used is integrated
reporting as measured by the elements in the integrated reporting framework
published by The International Reporting Council (IIRC).
The population in this study are manufacturing companies listed on the
Indonesia Stock Exchange (IDX). Data for audit quality, profitability, and
integrated reporting variables are taken from annual reports taken from the official
website of each company, while data for earnings response coefficient variables
are taken from the yahoo finance time window. Data analysis and hypothesis testing
in this study used Path Analysis with the help of the SPSS 25 application.
The results of this study found that audit quality has an effect on integrated
reporting, profitability has no effect on integrated reporting, audit quality has no
effect on earnings response coefficient, profitability has a negative effect on
earnings response coefficient, integrated reporting has an effect on earnings
response coefficient, audit quality has a negative effect on earnings. response
coefficient through integrated reporting, and profitability has a negative effect on
earnings response coefficient through integrated reporting as an intervening
variable. |