Title:
THE EFFECT OF BETA, SIZE, AND EARNINGS MANAGEMENT ON COST OF EQUITY

Authors:
Herman Ruslim, Yeni Arista Marlieana, Indonesia

Abstract:

This study aims to determine what factors influence investors' investment decisions (cost of equity). The independent variables are stock beta, company size, and earnings management. This research uses a purposive sampling technique. The sample used in this study was 150 samples from 30 companies for five years from 2012-2016. The data comes from the annual financial reports of companies listed on the Indonesia Stock Exchange. This study uses linear regressions to analyze data. The results showed that stock beta and firm size affected the cost of equity, while earnings management did not affect equity.