Artikel ini dipublikasikan pada :
JURNAL KEUANGAN DAN BISNIS, Vol. 5., No. 2, Oktober 2007
PENGARUH UKURAN KANTOR AKUNTAN PUBLIK TERHADAP EARNINGS RESPONSE COEFFICIENTS
This research is trying to give an empirical evident whether audit firm size as a proxy of audit quality does have influence to the Earnings Response Coefficients (ERC). ERC itself is a measure of how much stock return changed caused by unexpected earnings announcement. Earnings announcement is important for investors to make investment decision. If firms financial statements audited by a good quality audit firm, in this context is a big audit firm size then earnings information is expected to be more credible. The reason is big audit firms size have more resources and motivation to keep their reputation and so they will do their job more carefully.
Using 64 samples of public companies listed in BEJ, this research found that audit firm size does influence the firm ERC, so audit firm size adds credibility to the earnings information provided by company. Interestingly, there is no significant difference of ERC between firms audited by big audit firm size with firms audited by small audit firm size using mean difference test.
Keywords: Audit firms size, Earnings Response Coefficients, Stocks returns