This study aims to examine how financial performance, firm size, and capital structure influence the Earning Response Coefficient (ERC). Additionally, it investigates the Importance of Corporate Social Responsibility (CSR) as a significant influencing factor within this framework. The focus of this analysis is on banking companies that are listed on the Indonesia Stock Exchange (IDX) during the period from 2021 to 2023. The sample for this study includes 39 banking institutions, and data was collected from their annual financial and sustainability reports available on the IDX website. The findings indicate that financial performance and company size negatively impact ERC, whereas capital structure has a positive impact on ERC. However, CSR does not significantly influence the financial performance of ERC. Additionally, company size does not appear to affect ERC. Instead, CSR strengthens the ERC, and it weakens the effect of capital structure on the ERC. For further research, they can add other variables, such as company growth and timeline. Expanding the sample and adding a research period will provide more comprehensive results.
Anggraeni et al. (Thu,) studied this question.