The Effect of Current Earnings, Operating Cash Flows and Accrual Quality on Future Earnings (Empirical Study on Manufacturing Companies Listed on The Indonesia Stock Exchange Year 2016 – 2018)

Abstract

This study aims to determine the effect of current earnings, operating cash flow and accrual quality on future earnings. The population of this research is manufacturing companies listed on the Indonesia Stock Exchange for the period 20162018. The sample used purposive sampling and obtained a sample of 100 companies with a time period of 3 years to obtain 300. Earnings are proxied by net earnings after tax which is scaled to total assets or Return on Asset, Accrual quality is proxied by discretionary accruals of working capital, Future earnings are earnings. In the period t+1. The research method concludes that there is a positive and significant effect of current earnings and operating cash flows on future earnings, while accrual quality has no effect on future earnings.