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DOES EARNINGS QUALITY MODERATE THE PREDICTIVE CONTENT OF NONOPERATING INCOME?

Gadjah Mada International Journal of Business (GamaIJB) · Vol. 6 No. 2 (2013) · pp. 275–291

DOI
10.22146/gamaijb.5544
ISSN
2338-7238, 1411-1128
Published
2013-06-25
Publisher
Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada
Language
eng

Abstract

The objective of this study is to empirically examine a hypothesis that earnings quality enhances the ability of nonoperating income to predict future operating cash flow. The magnitude of income smoothing index, measured by Eckel’s (1981) index formula, is used to capture a firm’s quality level of earnings. Higher index is assumed to represent higher level of earnings quality. A linear regression model is developed to test the hypothesis. The model parameters are estimated based on sixty-two manufacturing firms listed in the Jakarta Stock Exchange (JSX) up to the end of 1997. This study finds empirical evidence that supports the proposed hypothesis. That is, earnings quality enhances the predictive content of nonoperating income.

Keywords

Collaboration network of the authors

4 authors · 6 co-authorship links

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  • Universitas Gadjah Mada
  • Different organisations
  • Same organisation
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Co-authorOrganisationJoint articles
Jogiyanto HartonoUniversitas Gadjah Mada1
Sumiyana SumiyanaUniversitas Gadjah Mada1
Zaki BaridwanUniversitas Gadjah Mada1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.ugm.ac.id/gamaijb/oai, first harvested 28 Okt 2026, last seen 28 Okt 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">DOES EARNINGS QUALITY MODERATE  THE PREDICTIVE CONTENT OF NONOPERATING INCOME?</dc:title>
	<dc:creator>Sugiri, Slamet</dc:creator>
	<dc:subject xml:lang="en-US">earnings quality; income smoothing; moderating; nonoperating income; predictive content</dc:subject>
	<dc:description xml:lang="en-US">The objective of this study is to empirically examine a hypothesis that earnings quality enhances the ability of nonoperating income to predict future operating cash flow. The magnitude of income smoothing index, measured by Eckel’s (1981) index formula, is used to capture a firm’s quality level of earnings. Higher index is assumed to represent higher level of earnings quality. A linear regression model is developed to test the hypothesis. The model parameters are estimated based on sixty-two manufacturing firms listed in the Jakarta Stock Exchange (JSX) up to the end of 1997. This study finds empirical evidence that supports the proposed hypothesis. That is, earnings quality enhances the predictive content of nonoperating income. </dc:description>
	<dc:publisher xml:lang="en-US">Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada</dc:publisher>
	<dc:date>2013-06-25</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ugm.ac.id/gamaijb/article/view/5544</dc:identifier>
	<dc:identifier>10.22146/gamaijb.5544</dc:identifier>
	<dc:source xml:lang="en-US">Gadjah Mada International Journal of Business; Vol 6, No 2 (2004): May-August; 275 - 291</dc:source>
	<dc:source>2338-7238</dc:source>
	<dc:source>1411-1128</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ugm.ac.id/gamaijb/article/view/5544/4515</dc:relation>
</oai_dc:dc>