PENGARUH ARUS KAS BEBAS TERHADAP HUBUNGAN ANTARA PERTUMBUHAN DAN UKURAN PERUSAHAAN DENGAN EARNINGS RESPONSE COEFFICIENTS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

The objective of this research is to examine and analyze the influence of free cash flow on relationship between firm growth and size and earnings response coefficients on listed companies from the manufacturing sector at the Indonesian Stock Exchange. The research type used in this research is verificative research by using census method. The target population of this research is listed companies from the manufacturing sector at the Indonesian Stock Exchange for the year 2005-2007 which have positive unexpected earnings and positive free cash flow After being selected, the target population for the year 2005 are 20 companies, 2006 are 18 companies, and 2007 are 29 companies. So, total population are 67 companies for three years observation. The multiple regression analysis is used to examine the influence of free cash flow on relationship between firm growth and size and earnings response coefficients. The data used in this research are secondary data, which are gotten from audited financial reporting for the book year ended December 31, 2005, 2006, and 2007 and from daily stock data report as well as from Jakarta Stock Excange Statistics. The results of this research show that 1) firm growth has influence on earnings response coefficients, 2) firm size has influence on earnings response coefficients. 3) free cash flow has influence on the relationship between firm growth and earnings response coefficients, and 4) free cash flow has influence on the relationship between firm size and earnings response coefficients.