Affiliation:
1. Trisakti School of Management, Kyai tapa No. 20, 11440, Jakarta, Indonesia
Abstract
Objective – This study aims to undertake an empirical study of the influence of ownership structure, cash holding, and tax avoidance on income smoothing.
Methodology/Technique – Ownership structure in this research is measured by public ownership and managerial ownership. The population of this research are manufacturing companies listed on the Indonesian Stock Exchange (IDX) between 2015-2017 and there are 50 companies that meet the criteria and serve as the research sample. The sample selection in this study uses purposive sampling and the hypotheses were tested using binary logistics.
Findings – The results of this study show that managerial ownership and public ownership, cash holding by companies and tax avoidance do not have influence on income smoothing. These results show that managerial ownership and public ownership do not affect income smoothing because there are same interest, to improve their wealth. Similarly, neither how much cash is held by a company nor tax avoidance behavior effect income smoothing.
Type of Paper: Empirical
Keywords: Income Smoothing; Ownership Structure; Cash Holding; Tax Avoidance.
Reference to this paper should be made as follows: Nico Alexander. 2019. The Effect of Ownership Structure, Cash Holding and Tax Avoidance on Income Smoothing, J. Fin. Bank. Review, 4 (3): 128 – 134 https://doi.org/10.35609/jfbr.2019.4.4(3)
JEL Classification: G23; G28.
Publisher
Global Academy of Training and Research (GATR) Enterprise
Reference19 articles.
1. Azlina, N. (2010). Analysis of Factors Affecting Profit Management (Studies in Companies Listed on the IDX). Journal of Economic and Business Education, 2 (03), 8960. https://www.neliti.com/publications/8960/analisis-faktor-yang-mempengaruhi-manajamen-laba-studi-pada-perusahaan-yang-terd
2. Vander Bauwhede, H., Willekens, M., & Gaeremynck, A. (2003). Audit firm size, public ownership, and firms' discretionary accruals management. The international journal of accounting, 38(1), 1-22. https://doi.org/10.1016/S0020-7063(03)00004-9
3. Budiasih, I. (2009). Factors that influence income smoothing practices. scientific journal of accounting and business. https://ojs.unud.ac.id/index.php/jiab/article/download/2589/1801
4. Carlson, S. J., & Bathala, C. T. (1997). Ownership differences and firms' income smoothing behavior. Journal of Business Finance & Accounting, 24(2), 179-196. https://doi.org/10.1111/1468-5957.00101
5. Eckel, N. (1981). The income smoothing hypothesis revisited. Abacus, 17(1), 28-40. https://doi.org/10.1111/j.1467-6281.1981.tb00099.x
Cited by
2 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献