The Effect of Financial Performance to Income Smoothing Practice in Property and Real Estate Companies Listed on Indonesia Stock Exchange

DOI

10.2991/aebmr.k.200309.011How to use a DOI?

Keywords

financial performance, profitability, liquidity, capital structure, size of company, income smoothing

Abstract

Study aims to obtain empirical evidence of the influence of financial performance proxied by profitability, liquidity and capital structure to income smoothing practice. The population of this study covers property and real estate companies at Indonesia Stock Exchange on period 2014–2017. The indicators which are used to measure income smoothing practice was measured using Eckel index. Mechanical sample selection using purposive sampling and acquired 32 companies that were included with period by 4 years in order to get the 128 samples was observed. Model data analysis in this research is logistic regression analysis with using software SPSS 22. From this study, the result of a combination of independent variables that are profitability, liquidity, capital structure and size of company as control variable, are able to explain the variation of the dependent variable is income smoothing practice for 22.10% and 77.90% the rest is explained by other factors were not involved in this model. The results also showed simultaneous independent variables that are profitability, liquidity, and capital structure are significantly influence income smoothing practice. From the test results obtained partial results showing variable profitability (ROE) with positive direction has significant effect to income smoothing practice, variable liquidity (CR) has not significant effect to income smoothing practice, and variable capital structure (DER) with positive direction has significant effect to income smoothing practice.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Flourien Nurul Ch
PY  - 2020
DA  - 2020/03/12
TI  - The Effect of Financial Performance to Income Smoothing Practice in Property and Real Estate Companies Listed on Indonesia Stock Exchange
BT  - Proceedings of the Annual International Conference on Accounting Research (AICAR 2019)
PB  - Atlantis Press
SP  - 46
EP  - 50
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200309.011
DO  - 10.2991/aebmr.k.200309.011
ID  - NurulCh2020
ER  -