Corporate earnings persistence and stock returns

Satrya Adityanur, Agus Widodo Mardijuwono

Research output: Contribution to journalArticlepeer-review


This study aims to identify and analyse corporate earnings persistence and stock returns with firm size, return on assets and dividend payout ratio as control variables. The population in this study comprises manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2012-16. The research sample was determined using the purposive sampling method. The sample chosen is 34 companies. The data analysis method used is logistic regression analysis using SPSS25. Based on the results of hypothesis, it can be concluded that earnings persistence, return on assets and dividend payout ratio have a positive relationship with stock returns, whereas the size of the company does not have a relationship with the practice of income smoothing. The results of this study indicate that the level of persistence of earnings is related to the rate of return on the stock returns of a company.

Original languageEnglish
Pages (from-to)813-829
Number of pages17
JournalInternational Journal of Innovation, Creativity and Change
Issue number4
Publication statusPublished - 2020


  • Dividend payout ratio
  • Earning persistence
  • Firm size
  • Return on assets


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