Abstract :
This study aims to determine whether the Earning Response Coefisient (ERC) in the company is good or bad. This study uses a simple regression method to calculate the coefficient between Abnormal Return and Unexpected Earning (EU) on automotive companies listed on the Indonesia Stock Exchange. Data obtained is secondary data based on financial statements within five years in the period 2014-2018. Total samples obtained by 12 companies. The results of the study concluded that ERC was positive or good as many as 6 (six) companies and ERC was negative or bad as many as 6 (six) companies out of a total of 12 companies for 5 years