Influence Factors on Income Smoothing in Manufacturing Companies: Evidence from Indonesia's Stock Exchange-Reference-Cited by-同舟云学术

Influence Factors on Income Smoothing in Manufacturing Companies: Evidence from Indonesia's Stock Exchange

Published:2023-08-10 Issue:3 Volume:18 Page:
ISSN:2598-9928
Container-title:Indonesian Journal of Law and Economics Review
language:
Short-container-title:ijler

Author:

Eny Maryanti ,Biduri Sarwenda,Kumala Sari Herlinda Maya,Fauziah Luluk Putri

Abstract

This study investigates the determinants of income smoothing in Indonesian manufacturing firms listed on the stock exchange during 2016-2021. The research examines the impact of Institutional Ownership, Managerial Ownership, Return on Assets, Debt to Equity Ratio, and Ln Total Sales on Income Smoothing using binary logistic regression analysis. The findings reveal that Institutional Ownership, Managerial Ownership, and firm size significantly influence income smoothing, while Financial Leverage and Profitability do not exhibit significant effects on Income Smoothing. These results contribute to the understanding of income smoothing practices and hold implications for corporate governance and financial reporting practices in emerging markets. Highlight: Determinants of Income Smoothing: This study delves into the factors driving income smoothing in Indonesian manufacturing companies listed on the stock exchange between 2016 and 2021. Influential Factors: Institutional Ownership, Managerial Ownership, and firm size are identified as significant influencers of income smoothing, shedding light on their impact within this context. Implications for Governance and Reporting: The study's outcomes offer valuable insights for corporate governance practices and financial reporting strategies, particularly in the dynamic landscape of emerging markets. Keyword: Income Smoothing, Manufacturing Firms, Institutional Ownership, Managerial Ownership, Emerging Markets

Publisher

Universitas Muhammadiyah Sidoarjo

Subject

General Medicine

Reference22 articles.

1. I. P. Sari and L. Amanah, “Faktor-Faktor Yang Mempengaruhi Income Smoothing Pada Perusahaan Manufaktur Di BEI,” J. Ilmu dan Ris. Akunt., vol. 6, pp. 1–19, 2017.

2. I. K. G. Ginantra and I. N. W. A. Putra, “Pengaruh Profitabilitas, Leverage,Ukuran Perusahaan, Kepemilikan Publik,Dividend Payout Ratio Dan Net Profit MarginPada Perataan Laba,” E-Jurnal Akunt. Univ. Udayana 10.2, vol. 2, pp. 1–16, 2015.

3. A. A. S. N. Andiani and I. B. P. Astika, “Pengaruh Struktur Kepemilikan dan Ukuran Perusahaan Pada Praktik Perataan Laba Fakultas Ekonomi dan Bisnis Universitas Udayana ( Unud ), Bali , Indonesia PENDAHULUAN Perkembangan pasar modal semakin pesat di Indonesia . Perusahaan menerbitkan saham untuk,” E-Jurnal Akunt. Univ. Udayana, vol. 27, pp. 984–1012, 2019.

4. L. Dwiastuti, “Analisis Pengaruh Struktur Kepemilikan Institusional, Financial Leverage, dan Ukuran KAP Terhadap Perataan Laba Dengan Ukuran Perusahaan Sebagai Variabel Moderasi,” Jom FEKON, vol. 4, no. 1, pp. 503–517, 2017.

5. C. F. Nazira and N. E. Ariani, “Operating Profit Margin dan Devidend Payout Ratio terhadap Perataan Laba pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2012-2014,” J. Ilm. Mhs. Ekon. Akunt., vol. 1, no. 1, pp. 158–170, 2016, [Online]. Available: http://www.jim.unsyiah.ac.id/EKA/article/view/763.