THE INFLUENCE OF COMPANY SIZE AND FINANCIAL PERFORMANCE TOWARDS INCOME SMOOTHING
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Published:
Nov 12, 2019
Keywords:
Company Size (SIZE), Return on Assets (ROA), Earnings per share (EPS), Financial Leverage (LEV), Income Smoothing
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Abstract
The main objective in this research is to test whether Company Size, Return on Assets, and Earnings per Share influence the practice of Income Smoothing. The data in this research is collected from 86 companies listed in manufacturing industry in Indonesia Stock Exchange. The period of the data collected is 3 years from 2013 – 2016. The research model used in this research is multiple regression where the classical assumption tests are conducted prior to find the result of the model by using SPSS 22. Quantitative approach is used in this research to test the raised hypotheses and solve the issues. In conclusion, the results of this research show that variable SIZE does have positive significant influence on Income Smoothing and variable ROA & EPS do not have significant influence on Income Smoothing.
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Andreas, S., & Wijaya, H. (2019). THE INFLUENCE OF COMPANY SIZE AND FINANCIAL PERFORMANCE TOWARDS INCOME SMOOTHING. JURNAL ILMIAH BISNIS, PASAR MODAL DAN UMKM, 2(1), 111-122. Retrieved from https://ibn.e-journal.id/index.php/JIBPU/article/view/125
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References
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Dechow, P.M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics, 18: 3-42.
Gitman, L. (2009). Principle of Managerial Finance (12thed). Boston: Prentice Hall.
Jensen, M., W. Meckling. (1976). Theory of the firm: managerial behavior, agency
costs and ownership structure. Journal of Financial Economics, 3(4): 305-360.
Kustono, A.S. and E.D.K. Sari. (2012). Pengaruh Profitabilitas dan Financial Leverage Terhadap Praktik Perataan Penghasilan Pada Bank-Bank di Indonesia. Media Riset Akuntansi, 2(2): 102.
Masodah. (2007). Praktik Perataan Laba Sektor Industri Perbankan dan Faktor yang mempengaruhinya. Proceding PESET, 2, A16 – A23.
Milikan, A., and Mukti, A., H. (2015). The Influence of Financial Performance towards Income Smoothing in Property, Real Estate, and Building Construction Industry Listed in Indonesia Stock Exchange. Int. J. Adm. Gov., 1(13), 1-9.
Moses, O.D. (1987). Income Smoothing and Incentives: Empirical Tests Using Accounting Changes. The Accounting Review, 62(2). 358-377.
Pachori, S. and N.K. Totala. (2012). Influence of Financial Leverage on Shareholders Return and Market Capitalization: A Study of Automotive Cluster Companies of Pithampur, (M.P.), India. 2nd International Conference on Humanities, Geography and Economics (ICHGE'2012), Singapore April 28-29.
Ratnaningrum. (2016). The Influence of Profitability and Income Tax on Income Smoothing Rankings. Jurnal Bisnis & Manajemen, 2016, 17(2), 133-143. ISSN 1412 – 3681.
S.P. Kothari et al. (2005). Performance Matched Discretionary Accrual Measures.
Journal of Accounting and Economics, 39, 163-197.
Santoso, E., B., and Salim, S., N. (2012). Pengaruh Profitabilitas, Financial Leverage, Dividen, Ukuran Perusahaan, Kepemilikan Institutional, dan Kelompok Usaha Terhadap Perataan Laba Studi Kasus Pada Perusahaan Non-Finansial yang Terdaftar di BEI. Proceedings of Conference In Business, Accounting and Management (CBAM) 2012, 1(1), 185-200.
Schipper, K. (1989). Commentary on Earnings Management[J]. Accounting Horizons, 3(4):91-102.
Scott, William. (2009). Financial Accounting Theory (5th Edition), Prentice Hall.
Stolowy, H. & Breton, G. (2004). Accounts manipulation: a literature review and proposed conceptual framework. Review of Accounting & Finance, 3(1), 5-66.
Sugiarto, Sopa. (2003). Perataan Laba Dalam Mengantisipasi Laba Masa Depan Perusahaan Manufaktur yang Terdaftar di Bursa Efek Jakarta. Simposium Nasional Akuntansi VI.
Tampubolon, M., Mukodim, D. (2012). Pengaruh Leverage, Free Cash Flow, dan Good Corporate Governance Terhadap Praktik Perataan Laba Pada Perusahaan Manufaktur Sektor Industri Dasar dan Kimia di Bursa Efek Indonesia.
Watts, R. L, & Zimmerman, J. L. (1990). Positive accounting theory: A ten year perspective. The Accounting Review, 65, 131-156.
Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory, Englewood Cliffs, NJ: Prentice-Hall.
Watts, R., & Zimmerman, J. (1978). Towards a positive theory of the determination of accounting standards. Accounting Review, 53, 112-134.
Wiyadi, Trisnawati, R., Sasongko, N., Fauzi, I. (2015). The Effect of Information, Asymmetry, Firm Size, Leverage, Profitability and Employee Stock Ownership on Earnings Management with Accrual Model. International Journal of Business, Economics and Law, 8(2). ISSN 2289-1552.
Ang, R. (1997). Buku Pintar Pasar Modal Indonesia, Jakarta, Mediasoft Indonesia.
Belkaoui, A. (2006). Teori Akuntansi. Edisi 5. Jakarta: Salemba Empat.
Dechow, P.M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics, 18: 3-42.
Gitman, L. (2009). Principle of Managerial Finance (12thed). Boston: Prentice Hall.
Jensen, M., W. Meckling. (1976). Theory of the firm: managerial behavior, agency
costs and ownership structure. Journal of Financial Economics, 3(4): 305-360.
Kustono, A.S. and E.D.K. Sari. (2012). Pengaruh Profitabilitas dan Financial Leverage Terhadap Praktik Perataan Penghasilan Pada Bank-Bank di Indonesia. Media Riset Akuntansi, 2(2): 102.
Masodah. (2007). Praktik Perataan Laba Sektor Industri Perbankan dan Faktor yang mempengaruhinya. Proceding PESET, 2, A16 – A23.
Milikan, A., and Mukti, A., H. (2015). The Influence of Financial Performance towards Income Smoothing in Property, Real Estate, and Building Construction Industry Listed in Indonesia Stock Exchange. Int. J. Adm. Gov., 1(13), 1-9.
Moses, O.D. (1987). Income Smoothing and Incentives: Empirical Tests Using Accounting Changes. The Accounting Review, 62(2). 358-377.
Pachori, S. and N.K. Totala. (2012). Influence of Financial Leverage on Shareholders Return and Market Capitalization: A Study of Automotive Cluster Companies of Pithampur, (M.P.), India. 2nd International Conference on Humanities, Geography and Economics (ICHGE'2012), Singapore April 28-29.
Ratnaningrum. (2016). The Influence of Profitability and Income Tax on Income Smoothing Rankings. Jurnal Bisnis & Manajemen, 2016, 17(2), 133-143. ISSN 1412 – 3681.
S.P. Kothari et al. (2005). Performance Matched Discretionary Accrual Measures.
Journal of Accounting and Economics, 39, 163-197.
Santoso, E., B., and Salim, S., N. (2012). Pengaruh Profitabilitas, Financial Leverage, Dividen, Ukuran Perusahaan, Kepemilikan Institutional, dan Kelompok Usaha Terhadap Perataan Laba Studi Kasus Pada Perusahaan Non-Finansial yang Terdaftar di BEI. Proceedings of Conference In Business, Accounting and Management (CBAM) 2012, 1(1), 185-200.
Schipper, K. (1989). Commentary on Earnings Management[J]. Accounting Horizons, 3(4):91-102.
Scott, William. (2009). Financial Accounting Theory (5th Edition), Prentice Hall.
Stolowy, H. & Breton, G. (2004). Accounts manipulation: a literature review and proposed conceptual framework. Review of Accounting & Finance, 3(1), 5-66.
Sugiarto, Sopa. (2003). Perataan Laba Dalam Mengantisipasi Laba Masa Depan Perusahaan Manufaktur yang Terdaftar di Bursa Efek Jakarta. Simposium Nasional Akuntansi VI.
Tampubolon, M., Mukodim, D. (2012). Pengaruh Leverage, Free Cash Flow, dan Good Corporate Governance Terhadap Praktik Perataan Laba Pada Perusahaan Manufaktur Sektor Industri Dasar dan Kimia di Bursa Efek Indonesia.
Watts, R. L, & Zimmerman, J. L. (1990). Positive accounting theory: A ten year perspective. The Accounting Review, 65, 131-156.
Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory, Englewood Cliffs, NJ: Prentice-Hall.
Watts, R., & Zimmerman, J. (1978). Towards a positive theory of the determination of accounting standards. Accounting Review, 53, 112-134.
Wiyadi, Trisnawati, R., Sasongko, N., Fauzi, I. (2015). The Effect of Information, Asymmetry, Firm Size, Leverage, Profitability and Employee Stock Ownership on Earnings Management with Accrual Model. International Journal of Business, Economics and Law, 8(2). ISSN 2289-1552.