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ABSTRACT:

The degree of profit consistency for speculators can be measured utilizing the profit reaction coefficient (ERC). Profit Reaction Coefficient (ERC) demonstrates the degree of significance of profit data itself. When a company's detailed profit are exceedingly responsive to the advertisement, the quality of detailed profit data is additionally way better. This consideration looks at the assurance of profit quality, which is considered based on a few variables, specifically obligation proportion, liquidity, cash stream, and company measure, with company estimate as a directing variable. This considers employment information obtained from auxiliary information obtained from the yearly money-related report ( yearly report ) of fabricating companies within the Indonesian Stock Trade for the period 2018-2020. The information investigation strategy utilized a numerous straight relapse examination and a directed relapse investigation through testing a hypothesis in detail, a concrete hypothesis. The ponder appears that use includes a noteworthy and positive effect on profit quality; There's no critical impact of liquidity on profit quality; Profit quality is essentially affected by free cash stream; Firm estimate has appeared to altogether direct the effect of use on profit quality; Firm estimate does not altogether direct the impact of use on profit quality; The relationship between liquidity and profit quality isn't affected by the balance of firm estimate; There's no impact that firm measure impacts free cash stream on profit quality factors.

KEYWORDS:

leverage, liquidity, cash flow, firm size, earnings quality

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