Can We (Still) Predict Future Earnings? The Case of China and Indonesia

Sulistiawan, Dedhy and Rudiawarni, Felizia Arni and Sudibyo, Yudha Aryo (2025) Can We (Still) Predict Future Earnings? The Case of China and Indonesia. Montenegrin Journal of Economics, 22 (1). pp. 103-111. ISSN ISSN 1800-5845; EISSN 1800-6698

PDF Can We (Still) Predict Future Earnings - The Case of China and Indonesia.pdf Restricted to Repository staff only Download (168kB) | Request a copy

Abstract

Financial information, particularly earnings predictability, is crucial because it can be employed to forecast future performance. This research aims to forecast future earnings in emerging economies by examining earning pre- dictability and its components. This study employed companies listed on Shanghai Stock Exchange (SSE) and Indonesia Stock Exchange (IDX) from 2017 to 2022. Our study's results indicate a detectable pattern in earnings that may be predicted in both markets. The results of our study indicate that future earnings can be forecasted based on past earnings, operating cash flows, and the combination of operating cash flows and accruals. Indonesian enterprises' past earnings have a greater capacity to forecast present earn- ings. In contrast, Chinese firms' past operating cash flows exhibit more pre- dictability in earnings than Indonesian firms. This study contributes to re- search on earnings relevance. In practical terms, this study contributes to optimal investment decisions, as SSE and IDX play a significant role in Asian stock exchanges.

Item Type:	Article
Uncontrolled Keywords:	Predictability, earnings, operating cash flow, accruals, Indonesia, China.
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	BAMBANG SEPTIAWAN
Date Deposited:	06 Jan 2026 07:08
Last Modified:	06 Jan 2026 07:08
URI:	http://repository.ubaya.ac.id/id/eprint/50017

Actions (login required)

View Item