The Effect of Leverage, Firm Size, and Sales Growth on Income Smoothing and Its Implication to the Firm Value (Study on State-Owned Companies Listed in Indonesia Stock Exchange 2016-2019)

Abstract

The purpose of this research was to determine the effect of leverage, firm size and sales growth on income smoothing and its implication to the firm value. The population used on this research was 24 state-owned companies listed on Indonesia Stock Exchange. The samples were determined using purposive sampling method and there were 19 companies which selected as the samples. The analytical method used on this research was statistic descriptive and panel data regression and use Eviews 9 for data processing. The result of this research showed that leverage which measured by debt to equity ratio has negative and insignificant effect on income smoothing while firm size and sales growth have negative and significant effect on income smoothing and income smoothing itself was found to have positive and significant effect on the firm value

Manager's Income Smoothing Actions Due to Debt Policy: The Moderating Role of Tax Avoidance

“…The results of this test confirm the findings of Indrawan & Damayanthi (2020), Oktaviasari et al (2018), Ramanel & Susuilo (2018), and Widhyawan & Dharmadiaksa (2015) although using different proxies. However, the result of this study is not in line with Arifah et al (2022), Bobby et al (2022), Mulyati & Mulyana (2021), Nathania & Nugroho (2023), Putri & Lutfillah (2020), Trisnawati et al (2017), and Tsuroyya & Astika (2017. Companies with higher debt have the desire to convince creditors that the company is in a stable condition.…”

“…On the contrary, Arifah et al ( 2022) and Nathania & Nugroho (2023) found that debt policy is negatively associated with income smoothing. Furthermore, Bobby et al (2022), Mulyati & Mulyana (2021), Putri & Lutfillah (2020), Trisnawati et al (2017 and Tsuroyya & Astika (2017) suggested that debt policy is not associated with income smoothing. Thus, the various results of the previous studies boost to reexamine the association debt policy and income smoothing.…”

Institutional Investors, Political Connection, and Sustainability Reporting Quality: Empirical Evidence From Indonesia

“…Firm Age (Fan & Wang, 2019) The age of the firm from its establishment until the year of observation. Firm Size (Hu & Sun, 2018) Ln Total Asset Growth Sales (Mulyati & Mulyana, 2021) Salest -Salest-1…”

The Moderating Role of Good Corporate Governance on the Influence of Company Size, Share Value, Profitability, and Financial Leverage on Income Smoothing (Study of Primary Consumer Goods Companies listed on the BEI in 2020-2022)

“…Company managers receive more information as internal parties. So, managers are motivated to use this information for personal gain (Mulyati & Mulyana, 2021). Jensen and Meckling (1976) stated that agency theory is an agency relationship between one or more people giving authority to other parties in providing services or agents with the power to make decisions.…”