THE EFFECT OF DEBT LEVEL, MANAGERIAL OWNERSHIP AND OPERATING CASH FLOW ON PROFIT PERSISTENCE

Abstract

This study aims to analyze the influence of debt level, managerial ownership, and operating cash flow on earnings persistence in non-cyclical consumer goods industry companies listed on the Indonesia Stock Exchange during the 2021–2023 period. The research is conducted using a quantitative approach through panel data regression analysis, which combines time series and cross-sectional methods. The data employed in this study were obtained from the Financial Statements and Notes to the Financial Statements of each company in the non-cyclicals consumer sector listed on the IDX. The total sample comprises 108 observations drawn from 36 companies over the 2021–2023 period, determined using a purposive sampling method. Panel data regression was performed using the EViews application. The findings indicate that the Operating Cash Flow variable has a significant positive effect on earnings persistence, whereas the Debt Level and Managerial Ownership variables do not have any effect on earnings persistence. These findings are expected to provide insights and serve as an evaluation material for companies to focus their financial strategies more on operational efficiency in order to maintain sustainable earnings.