Main Article Content
Abstract
This paper examined the impact of profitability, leverage, management ownership, and dividend payout ratio on income smoothing of companies listed in IDX in the range of 2015-2020 based on Eckel Index. The lower the Eckel Index the higher the intensity of income smoothing and vice versa. The hypothesis proposed were tested by a multiple regression analysis. This research concluded that return on asset, debt to capital ratio, and dividend payout ratio have significant and positive impacts on the Eckel Index. It is interpreted that the higher these variables, the lower the intensity of income smoothing. However, this research revealed that management ownership has a negative and significant impact on the Eckel Index, thus proving that managers ownership will drive them to conduct the income smoothing.
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References
- Abiprayu, K. B. (2011). Pengaruh Profitabilitas, Ukuran Perusahaan, Financial Leverage, Kualitas Audit, dan Dividen Payout Ratio terhdap Perataan Laba. Universitas Diponegoro.
- Amanza, A. H. (2012). Analisis Faktor-faktor yang Mempengaruhi Praktik Perataan Laba (Income Smoothing). Universitas Diponegoro.
- Ashari, N., Koh, H. C., Tan, S. L., & Wong, W. H. (1994). Factors affecting income smoothing among listed companies in Singapore. Accounting and Business Research, 24(96), 291–301. https://www.proquest.com/scholarly-journals/factors-affecting-income-smoothing-among-listed/docview/198112745/se-2?accountid=62100
- Barnea, A. (1976). Reply: Specialists’ performance and serial dependence of stock price changes. The Journal of Financial and Quantitative Analysis. https://doi.org/10.2307/2330590
- Barus, I. S. L. (2021). The effect of profitability on dividend payment through income smoothing as moderator (survey on pharmaceutical companies registered in Indonesia Stock Exchanges in period of 2015-2019). Turkish Journal of Computer and Mathematics Education, 12(8), 917–926. https://www.proquest.com/scholarly-journals/effect-profitability-on-dividend-payment-through/docview/2623458957/se-2?accountid=62100
- Budhijono, F. (2006). Evaluasi Perataan Laba pada Industri Manufaktur dan Lembaga Keuangan yang Terdaftar di BEJ. Akuntabilitas, 6(1), 70–79.
- Budiasih, I. (2009). Faktor-faktor yang mempengruhi praktik perataan laba. Jurnal Akuntansi Bisnis, 4(1), 44–50.
- Eckel, N. (1981). The income smoothing hypothesis revisited. Abacus, 17(1), 28–40. https://doi.org/https://doi.org/10.1111/j.1467-6281.1981.tb00099.x
- Fudenberg, D., & Tirole, J. (1995). A theory of income and dividend smoothing based on incumbency rents. Journal of Political Economy, 103(1), 75–93. https://doi.org/http://dx.doi.org/10.1086/261976
- Garel, A., Martin-Flores, J. M., Petit-Romec, A., & Scott, A. (2021). Institutional investor distraction and earnings management. Journal of Corporate Finance, 66. https://doi.org/10.1016/j.jcorpfin.2020.101801
- Ghozali, I. (2012). Aplikasi Analisis Multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.
- Harumnida, K. R. (2016). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Deviden dan Kepemilikan Manajerial terhadap Praktik Perataan Laba. Thesis: Universitas Islam Indonesia.
- Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X
- Lee, H.-A. (2022). A study on earnings management of zero-leverage firms from the perspective of financial constraints. Global Business & Finance Review, 27(1), 28–49. https://doi.org/https://doi.org/10.17549/gbfr.2022.27.1.28
- Li, X. Y., & Chen, P.-W. (2020). Meeting dividend thresholds through earnings management of listed companies in South Africa. Advances in Management and Applied Economics, 10(6), 77–95. https://doi.org/https://doi.org/10.47260/amae/1065
- Lubis, D. R. (2016). Pengaruh Profitabilitas, Resiko Keuangan, Nilai Perusahaan dan Struktur Kepemilikan Manajerial terhadap Perataan Laba (Income Smoothing) (Studi Empiris pada perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia tahun 2012-2014). Universitas Lampung.
- Mahesa, A. D. (2018). Pengaruh Ukuran Perusahaan, Profitabilitas, Komisaris Independen, dan Penghindaran Pajak Terhadap Manajemen Laba. Universitas Islam Indonesia.
- Martins, O. S., de Sousa, R. A. M., & Girão, L. F. de A. P. (2022). Dividend persistence and earnings management in emerging markets. Revista Contabilidade & Finanças, 33(88), 130–149. https://doi.org/https://doi.org/10.1590/1808-057x202113040
- Mendoza, J. A. M., Yelpo, S. M. S., Ramos, C. L. V., & Delgado Fuentealba, C. L. (2021). Effects of capital structure and institutional–financial characteristics on earnings management practices: Evidence from Latin American firms TT - Capital structure effect on earnings management. International Journal of Emerging Markets, 16(3), 580–603. https://doi.org/https://doi.org/10.1108/IJOEM-03-2019-0239
- Monjed, H., & Ibrahim, S. (2020). Risk disclosure, income smoothing and firm risk. Journal of Applied Accounting Research, 21(3), 517–533. https://doi.org/10.1108/JAAR-05-2019-0085
- Pesci, N., Aguilar, J.-P., James, V., & Rouillé, F. (2022). Inflation forecasts and European asset returns: A regime-switching approach. Journal of Risk and Financial Management, 15(10), 475. https://doi.org/https://doi.org/10.3390/jrfm15100475
- Purwanto, A. (2004). Analisis faktor-faktor yang mempengaruhi perataan laba pada perusahaan publik di Indonesia. Jurnal Bisnis Strategi, 13(2), 157–170. https://doi.org/https://doi.org/10.14710/jbs.13.2.157-170
- Rosa, F. La, Bernini, F., & Verona, R. (2020). Ownership structure and the cost of equity in the European context: The mediating effect of earnings management. Meditari Accountancy Research, 28(3), 485–514. https://doi.org/https://doi.org/10.1108/MEDAR-12-2018-0421
- Savitri, E. (2019). Can effective tax rates mediate the effect of profitability and debts on income smoothing? Problems and Perspectives in Management, 17(3), 89–100. https://doi.org/https://doi.org/10.21511/ppm.17(3).2019.07
- Scherer, B. (2021). Adding alternative assets: return enhancement, diversification or hedging? Journal of Asset Management, 22(6), 437–442. https://doi.org/https://doi.org/10.1057/s41260-021-00238-w
- Sulistyanto, S. (2008). Manajemen Laba Teori dan Model Empiris. Jakarta: Grasindo.
- Suwardjono. (2005). Teori Akuntansi Perekayasaan Pelaporan Keuangan. Yogyakarta: BPFE.
- Swastika, R. P. (2017). Pengaruh Leverage, Kepemilikan Manajerial, Kepemilikan Institusional, Proporsi Dewan Komisaris Independen terhadap Income Smoothing pada Perusahaan Manufaktur yang Listed di BEI Periode 2011-2014. Universitas Islam Indonesia.
- Tseng, L.-J., & Lai, C.-W. (2007). The relationship between income smoothing and company profitability: An empirical study. International Journal of Management, 24(4), 727–733. https://www.proquest.com/scholarly-journals/relationship-between-income-smoothing-company/docview/233228753/se-2?accountid=62100
- Wati, E., Rebec, O., & Gultom, T. (2022). The impact of ownership structure on earnings management: Evidence from the Indonesian Stock Exchange. Journal of Accounting, Finance and Auditing Studies, 8(1), 152–175. https://doi.org/https://doi.org/10.32602/jafas.2022.007
- Yovi, A., Brahmono, A., Atma, U., Yogyakarta, J., & Purwaningsih, A. (2022). Real earnings management practices in indonesia: Opportunist or efficient earnings management practices? Review of Integrative Business and Economics Research, 11(1), 191–200.
- Yunengsih, Y., Icih., & Kurniawan, A. (2018). Pengaruh ukuran perusahaan, net profit margin, debt to equity ratio, kepemilikan manajerial dan reputasi auditor terhadap praktik perataan laba (income smoothing) (studi kasus pada perusahaan manufaktur yang terdaftar di bursa efek Indonesia tahun 2011-2014. Accounting Research Journal of Sutaatmadja (Accruals), 2(2), 31–52.
- Yusuf, M., & Soraya, S. (2004). Faktor-faktor yang mempengaruhi praktik perataan laba pada perusahaan asing dan non asing di Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 8(1), 99–125.
References
Abiprayu, K. B. (2011). Pengaruh Profitabilitas, Ukuran Perusahaan, Financial Leverage, Kualitas Audit, dan Dividen Payout Ratio terhdap Perataan Laba. Universitas Diponegoro.
Amanza, A. H. (2012). Analisis Faktor-faktor yang Mempengaruhi Praktik Perataan Laba (Income Smoothing). Universitas Diponegoro.
Ashari, N., Koh, H. C., Tan, S. L., & Wong, W. H. (1994). Factors affecting income smoothing among listed companies in Singapore. Accounting and Business Research, 24(96), 291–301. https://www.proquest.com/scholarly-journals/factors-affecting-income-smoothing-among-listed/docview/198112745/se-2?accountid=62100
Barnea, A. (1976). Reply: Specialists’ performance and serial dependence of stock price changes. The Journal of Financial and Quantitative Analysis. https://doi.org/10.2307/2330590
Barus, I. S. L. (2021). The effect of profitability on dividend payment through income smoothing as moderator (survey on pharmaceutical companies registered in Indonesia Stock Exchanges in period of 2015-2019). Turkish Journal of Computer and Mathematics Education, 12(8), 917–926. https://www.proquest.com/scholarly-journals/effect-profitability-on-dividend-payment-through/docview/2623458957/se-2?accountid=62100
Budhijono, F. (2006). Evaluasi Perataan Laba pada Industri Manufaktur dan Lembaga Keuangan yang Terdaftar di BEJ. Akuntabilitas, 6(1), 70–79.
Budiasih, I. (2009). Faktor-faktor yang mempengruhi praktik perataan laba. Jurnal Akuntansi Bisnis, 4(1), 44–50.
Eckel, N. (1981). The income smoothing hypothesis revisited. Abacus, 17(1), 28–40. https://doi.org/https://doi.org/10.1111/j.1467-6281.1981.tb00099.x
Fudenberg, D., & Tirole, J. (1995). A theory of income and dividend smoothing based on incumbency rents. Journal of Political Economy, 103(1), 75–93. https://doi.org/http://dx.doi.org/10.1086/261976
Garel, A., Martin-Flores, J. M., Petit-Romec, A., & Scott, A. (2021). Institutional investor distraction and earnings management. Journal of Corporate Finance, 66. https://doi.org/10.1016/j.jcorpfin.2020.101801
Ghozali, I. (2012). Aplikasi Analisis Multivariate dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro.
Harumnida, K. R. (2016). Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan, Deviden dan Kepemilikan Manajerial terhadap Praktik Perataan Laba. Thesis: Universitas Islam Indonesia.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X
Lee, H.-A. (2022). A study on earnings management of zero-leverage firms from the perspective of financial constraints. Global Business & Finance Review, 27(1), 28–49. https://doi.org/https://doi.org/10.17549/gbfr.2022.27.1.28
Li, X. Y., & Chen, P.-W. (2020). Meeting dividend thresholds through earnings management of listed companies in South Africa. Advances in Management and Applied Economics, 10(6), 77–95. https://doi.org/https://doi.org/10.47260/amae/1065
Lubis, D. R. (2016). Pengaruh Profitabilitas, Resiko Keuangan, Nilai Perusahaan dan Struktur Kepemilikan Manajerial terhadap Perataan Laba (Income Smoothing) (Studi Empiris pada perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia tahun 2012-2014). Universitas Lampung.
Mahesa, A. D. (2018). Pengaruh Ukuran Perusahaan, Profitabilitas, Komisaris Independen, dan Penghindaran Pajak Terhadap Manajemen Laba. Universitas Islam Indonesia.
Martins, O. S., de Sousa, R. A. M., & Girão, L. F. de A. P. (2022). Dividend persistence and earnings management in emerging markets. Revista Contabilidade & Finanças, 33(88), 130–149. https://doi.org/https://doi.org/10.1590/1808-057x202113040
Mendoza, J. A. M., Yelpo, S. M. S., Ramos, C. L. V., & Delgado Fuentealba, C. L. (2021). Effects of capital structure and institutional–financial characteristics on earnings management practices: Evidence from Latin American firms TT - Capital structure effect on earnings management. International Journal of Emerging Markets, 16(3), 580–603. https://doi.org/https://doi.org/10.1108/IJOEM-03-2019-0239
Monjed, H., & Ibrahim, S. (2020). Risk disclosure, income smoothing and firm risk. Journal of Applied Accounting Research, 21(3), 517–533. https://doi.org/10.1108/JAAR-05-2019-0085
Pesci, N., Aguilar, J.-P., James, V., & Rouillé, F. (2022). Inflation forecasts and European asset returns: A regime-switching approach. Journal of Risk and Financial Management, 15(10), 475. https://doi.org/https://doi.org/10.3390/jrfm15100475
Purwanto, A. (2004). Analisis faktor-faktor yang mempengaruhi perataan laba pada perusahaan publik di Indonesia. Jurnal Bisnis Strategi, 13(2), 157–170. https://doi.org/https://doi.org/10.14710/jbs.13.2.157-170
Rosa, F. La, Bernini, F., & Verona, R. (2020). Ownership structure and the cost of equity in the European context: The mediating effect of earnings management. Meditari Accountancy Research, 28(3), 485–514. https://doi.org/https://doi.org/10.1108/MEDAR-12-2018-0421
Savitri, E. (2019). Can effective tax rates mediate the effect of profitability and debts on income smoothing? Problems and Perspectives in Management, 17(3), 89–100. https://doi.org/https://doi.org/10.21511/ppm.17(3).2019.07
Scherer, B. (2021). Adding alternative assets: return enhancement, diversification or hedging? Journal of Asset Management, 22(6), 437–442. https://doi.org/https://doi.org/10.1057/s41260-021-00238-w
Sulistyanto, S. (2008). Manajemen Laba Teori dan Model Empiris. Jakarta: Grasindo.
Suwardjono. (2005). Teori Akuntansi Perekayasaan Pelaporan Keuangan. Yogyakarta: BPFE.
Swastika, R. P. (2017). Pengaruh Leverage, Kepemilikan Manajerial, Kepemilikan Institusional, Proporsi Dewan Komisaris Independen terhadap Income Smoothing pada Perusahaan Manufaktur yang Listed di BEI Periode 2011-2014. Universitas Islam Indonesia.
Tseng, L.-J., & Lai, C.-W. (2007). The relationship between income smoothing and company profitability: An empirical study. International Journal of Management, 24(4), 727–733. https://www.proquest.com/scholarly-journals/relationship-between-income-smoothing-company/docview/233228753/se-2?accountid=62100
Wati, E., Rebec, O., & Gultom, T. (2022). The impact of ownership structure on earnings management: Evidence from the Indonesian Stock Exchange. Journal of Accounting, Finance and Auditing Studies, 8(1), 152–175. https://doi.org/https://doi.org/10.32602/jafas.2022.007
Yovi, A., Brahmono, A., Atma, U., Yogyakarta, J., & Purwaningsih, A. (2022). Real earnings management practices in indonesia: Opportunist or efficient earnings management practices? Review of Integrative Business and Economics Research, 11(1), 191–200.
Yunengsih, Y., Icih., & Kurniawan, A. (2018). Pengaruh ukuran perusahaan, net profit margin, debt to equity ratio, kepemilikan manajerial dan reputasi auditor terhadap praktik perataan laba (income smoothing) (studi kasus pada perusahaan manufaktur yang terdaftar di bursa efek Indonesia tahun 2011-2014. Accounting Research Journal of Sutaatmadja (Accruals), 2(2), 31–52.
Yusuf, M., & Soraya, S. (2004). Faktor-faktor yang mempengaruhi praktik perataan laba pada perusahaan asing dan non asing di Indonesia. Jurnal Akuntansi Dan Auditing Indonesia, 8(1), 99–125.