THE EFFECT OF EARNINGS PERSISTENCE AND REAL EARNINGS MANAGEMENT TOWARD COMPANY’S OPERATIONAL PERFORMANCE ON CONSUMER GOODS SECTOR COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (IDX) ON 2010-2014
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This study aims to examine and obtain empirical evidence about the effect of earning persistence and real earnings management with abnormal production costs approach on the company's operational performance on the manufacturing companies (consumer goods sector) listed in Indonesia Stock Exchange (IDX) on 2010-2014 with 2006-2015 data needed. This research used purposive sampling method. Earnings persistence and real earnings management as independent variables and the company's operational performance as the dependent variable is measured by the ROA indicator. This study also uses control variables are size and growth. The sample used in this study 25 companies selected by purposive sampling technique. This research use StataMP program and Microsoft Excel to run the data. This study uses quantitative data with data analysis techniques are classical assumptions and multiple linear regressions. The results showed that earning persistence does not have a positive significant effect and real earnings management with abnormal production costs approach also does not have a positive significant effect to the company's operational performance. While the size has a significant effect and growth showed does not have a significant effect on the company's operational performance.