Abstract
The purpose of this research is to examine the effect of profitability, systematic risk, leverage and earnings persistence on Earnings Response Coefficient (ERC) in companies listed in LQ45 at Indonesia Stock Exchange (IDX).The data used in this research are annual data from 2015 to 2017. The sampling technique used in this research is purposive sampling. The objects of this research are companies that are consistenly listed in LQ45 during 2015-2017. There are 30 companies selected to be analyzed as a sample. This study uses panel data regression analysis using Eviews 9.0 software. The dependent variable in this study is ERC, while the independent variables are profitability, systematic risk, leverage and earnings persistence. The empirical results of this research show that systematic risk and earnings persistence has significantly negative effect on earnings response coefficient (ERC), leverage has significantly positive effect on earnings response coefficient (ERC), while profitability does not have an effect on earnings response coefficient (ERC). The results of the research show that the factors of systematic risk, leverage and earnings persistence owned by the company have an effect on investment decisions made by investors.

Kata Kunci: Earnings Response Coefficient, Profitability, Systematic Risk, Leverage, Earnings Persistence.