Effect of Earnings Persistence, Accrual Quality and Public Accountant Office Reputation on the Quality of Earnings (Empirical Study On Manufacturing Companies List on Indonesia Stock Exchange 2010-2014)

Abstract

The purpose of this research is to examine empirically the effect of persistence of earnings, accruals quality, reputable public accounting firms on quality of earnings at manufacturing companies listed on the Indonesia Stock Exchange. The population of this research is manufacturing companies listed on Indonesia Stock Exchange (BEI) in 2010 to 2014. The sample is determined by purposive sampling method, the number of sample in the research are 65 manufacturing comanies. The data used in this research is secondary data. Data collected by using documentation obtained through the official website IDX: www.idx.co.id and obtained from the website: www.yahoofinance.com. 

There are three hypothesis examined in this research. The result of the research show that (1) the persistence of earnings does not affect the quality of earnings, (2) the quality of accruals has positive effect on earnings quality, (3) the reputation of KAP has negative effect on the quality of earnings. 

Keywords: Quality Of Earnings, Earnings Persistence, Accruals Quality, Public Accountant Office Reputation