Does Management Moderates on Analyst Consensus Achievement and Stock Price?

Abstract

This study aims to determine, analyze, and obtain empirical evidence regarding the effect of analyst consensus achievement on stock prices moderated by earnings management practices. This research was conducted on non-financial companies listed on the Indonesia Stock Exchange in 2021–2022, and analyst consensus data is presented on the finance.yahoo.com website. The research sample was selected using the purposive sampling technique and obtained from 43 non-financial companies, so the total number of observations in this study was 172 for 4 quarters. The data analysis technique used is moderated regression analysis using Eviews 12 student version software. The results showed that the company's ability to achieve analyst consensus predictions had an effect on stock prices. This study also found that earnings management can strengthen the positive effect of analyst consensus achievement on stock prices. The existence of analyst consensus predictions makes management pay close attention to the state of the company's financial statements, especially company profits. When the company's profits are not good, the management will carry out earnings management that increases profits. If a company's profit is high, its EPS value will be above the analyst consensus value. The higher the profit presented in the financial statements, the more investor interest in investing will increase, which is in line with the fact that the company's stock price will also increase.

Keywords: Analyst Consensus Achievement, Stock Price, Earnings Management

DOI: 10.7176/RJFA/14-13-02

Publication date:July 31^st 2023