The phenomenon of income smoothing in banking companies listed on the Indonesian stock exchange and the factors that influence it
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Published:
Mar 30, 2021
Keywords:
Company size; Debt to equity; Eckel Index; Income smoothing; Logit; Profitability.
Section
Articles
Statistics Article
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Abstract
The objective of this research are to prove empirically regarding income smoothing practice in banking companies in Indonesia Stock Exchange and to identify some factors which are suspected have an influence on income smoothing practice, such as company size, debt to equity, and profitability. This research involved 14 listed banking companies in Indonesia Stock Exchange during 5 years from 2003 until 2007. The Eckel Index was used to classify samples between smoothing company and non smoothing company. The statistical method which used in univariate test were Independent Sample T-Test and Mann-Whitney U Test, while for the multivariate test Binary Logistic Regression (Logit) was used. The researcher used statistical software SPSS version 16 to process both of the test. The result using Eckel Index showed that there are 9 banking companies from 14 samples practiced income smoothing. The result of univariate test indicated that company size, debt to equity, and profitability did not prove to have significant difference between smoothing company and non smoothing company. The result of multivariate test also indicated that company size, debt to equity, and profitability did not prove to have an influence on income smoothing practice.
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How to Cite
Surya Kusuma, A. A. (2021). The phenomenon of income smoothing in banking companies listed on the Indonesian stock exchange and the factors that influence it. Indonesia Auditing Research Journal, 10(2), 37–46. Retrieved from https://journals.iarn.or.id/index.php/ARJ/article/view/41
References
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Beaver, W. H. (1968), The Information Content of Annual Earning Announcement, Journal of Accounting Research, hal 67-92.
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Daito, Apollo (2004), Beberapa Faktor yang Mempengaruhi Earnings Management Serta Penerapannya dalam Penyusunan Laporan Keuangan, Disertasi, Program Pasca Sarjana, Universitas Padjajaran.
Ghozali, Imam (2002), Aplikasi Analisis Multivariate dengan Program SPSS, Semarang : Badan Penerbit Universitas Diponegoro.
Jatiningrum (2000), Analisis Faktor-Faktor yang Berpengaruh terhadap Perataan Penghasilan Bersih pada Perusahaan yang Terdaftar di BEJ, Jurnal Bisnis dan Akuntansi, vol. 2(2), hal. 145-155.
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Masodah (2007), Praktik Perataan Laba Sektor Industri Perbankan dan Lembaga Keuangan Lainnya dan Faktor yang Mempengaruhinya, ISSN, vol. 2.
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Bayraksan, G., & Love, D. K. (2015). Data-Driven Stochastic Programming Using Phi-Divergences. The Operations Research Revolution, September, 1–19. https://doi.org/10.1287/educ.2015.0134
Calero, N., Muñoz, J., Cox, P. W., Heuer, A., & Guerrero, A. (2013). Influence of chitosan concentration on the stability, microstructure and rheological properties of O/W emulsions formulated with high-oleic sunflower oil and potato protein. Food Hydrocolloids, 30(1), 152–162.
Chen, H. I., Wolf, J. A., Blue, R., Song, M. M., Moreno, J. D., Ming, G. li, & Song, H. (2019). Transplantation of Human Brain Organoids: Revisiting the Science and Ethics of Brain Chimeras. Cell Stem Cell, 25(4), 462–472. https://doi.org/10.1016/j.stem.2019.09.002
Ebeed, H. T., Hassan, N. M., Keshta, M. M., & Hassanin, O. S. (2019). Comparative analysis of seed yield and biochemical attributes in different sunflower genotypes under different levels of irrigation and salinity. Egyptian Journal of Botany, 59(2), 339–355.
Garry, D. J., Caplan, A. L., & Garry, M. G. (2020). Chimeric Humanized Vasculature and Blood: The Intersection of Science and Ethics. Stem Cell Reports, 14(4), 538–540. https://doi.org/10.1016/j.stemcr.2020.03.016
Go, R.-E., Hwang, K.-A., Kim, Y.-S., Kim, S.-H., Nam, K.-H., & Choi, K.-C. (2015). Effects of palm and sunflower oils on serum cholesterol and fatty liver in rats. Journal of Medicinal Food, 18(3), 363–369.
Jiang, R., & Guan, Y. (2016). Data-driven chance constrained stochastic program. Mathematical Programming, 158(1–2), 291–327. https://doi.org/10.1007/s10107-015-0929-7
Johnson, D. G. (2010). The role of ethics in science and engineering. Trends in Biotechnology, 28(12), 589–590. https://doi.org/10.1016/j.tibtech.2010.08.003
Land, K. C., Lovell, C. K., & Thore, S. (1994). Chance-constrained data envelopment analysis. Vi(October 2017).
Morita, H., & Seiford, L. M. (1999). Characteristics on Stochastic Dea Efficiency : Reliability and Probability Being Efficient. Journal of the Operations Research Society of Japan, 42(4), 389–404. https://doi.org/10.15807/jorsj.42.389
Tran, L. T., & Nguyen, T. S. (2021). Motivation and mathematics achievement: A Vietnamese case study. Journal on Mathematics Education, 12(3), 449–468.
Wijnen, M., Loyens, S., Smeets, G., Kroeze, M., & van der Molen, H. (2017). Students’ and teachers’ experiences with the implementation of problem-based learning at a university law school. Interdisciplinary Journal of Problem-Based Learning, 11(2).
Yasin, S., Haseeb, K., & Qureshi, R. J. (2012). Cryptography based e-commerce security: a review. International Journal of Computer Science Issues (IJCSI), 9(2), 132.
Zhu, Q. (2020). Ethics, society, and technology: A Confucian role ethics perspective. Technology in Society, 63, 101424. https://doi.org/10.1016/j.techsoc.2020.101424
Ashari, N. et al (1994), Factors Affecting Income Smoothing among Listed Companies in Singapore, Journal of Accounting and Business Research, Autumn, hal. 291-304.
Assih, P. dan M. Gudono (2000), Hubungan Tindakan Perataan Laba dengan Reaksi Pasar atas Pengumuman Informasi Laba Perusahaan yang Terdaftar di Bursa Efek Jakarta, Jurnal Riset Akuntansi Indonesia, vol. 3(1), hal. 35- 53.
Atmini, Sari (2000), Standar Akuntansi yang Memberi Peluang Bagi Manajemen Untuk Melakukan Praktik Perataan Laba, No. 18 Januari-Mei.
Bartov, A. and B. Eli (1993), The Timing of Asset Sales and Earning Manipulation, The Accounting Review, hal. 653-668.
Beattie et al (1994), Extraordinary Items and Income Smoothing : A Positive Accounting Approach, Journal of Business Finance and Accounting, hal. 791- 811.
Beaver, W. H. (1968), The Information Content of Annual Earning Announcement, Journal of Accounting Research, hal 67-92.
Belkaoui, A. R. (1993), Accounting Theory, Academic Press Limited, London Financial Accounting Standard Board, 1987, Statement of Financial Accounting Concepts, No 1, 2, 5, 6, Mc Graw Hill.
Daito, Apollo (2004), Beberapa Faktor yang Mempengaruhi Earnings Management Serta Penerapannya dalam Penyusunan Laporan Keuangan, Disertasi, Program Pasca Sarjana, Universitas Padjajaran.
Ghozali, Imam (2002), Aplikasi Analisis Multivariate dengan Program SPSS, Semarang : Badan Penerbit Universitas Diponegoro.
Jatiningrum (2000), Analisis Faktor-Faktor yang Berpengaruh terhadap Perataan Penghasilan Bersih pada Perusahaan yang Terdaftar di BEJ, Jurnal Bisnis dan Akuntansi, vol. 2(2), hal. 145-155.
Jin, Liaw She dan Mas’ud Machfoedz (1998), Faktor-Faktor yang Mempengaruhi Praktik Perataan Laba pada Perusahaan yang Terdaftar di Bursa Efek Jakarta, Jurnal Riset Akuntansi Indonesia, vol. 1(2), hal. 174- 191.
Juniarti dan Corolina (2005), Analisa Faktor-Faktor yang Berpengaruh terhadap Perataan Laba pada Perusahaan-Perusahaan Go Publik, Skripsi S-1, Fakultas Ekonomi Universitas Kristen Petra Surabaya.
Koch, Bruce, S. (1981), Income Smoothing An Experiment, The Accounting Review, vol. LVI(3), hal. 574-586.
Magnan, M. and D.Cormier (1997), The Impact of Forward-Looking Financial Data in IPO on Quality of Financial Reporting, Journal of Financial Statement Analysis, hal. 6-17.
Masodah (2007), Praktik Perataan Laba Sektor Industri Perbankan dan Lembaga Keuangan Lainnya dan Faktor yang Mempengaruhinya, ISSN, vol. 2.
perusahaan Manufaktur di BEJ dan Faktor-Faktor yang Mempengaruhinya, Jurnal Universitas Paramadina, vol. 5(1), hal. 33-42.
Nachrowi, D. Nachrowi M.Sc., M.Phil, App.Sc., Ph.D. dan Usman, Hardius, S.Si., M.Si. (2002), Penggunaan Teknik Ekonometri, Jakarta, Rajawali Pers.
PSAK 00 (2007), Kerangka Dasar Penyusunan Penyajian Laporan Keuangan, Jakarta : IAI.
Scott, William R. (2006), Financial Accounting Theory, 4th ed, Canada : Prentice Hall.
Sekaran, Uma (2003), Research Method For Business, 4th ed, United States : John Wiley&Sons, Inc.
Surat Edaran Bank Indonesia No. 6/23/DPNP/2004 beserta lampirannya, dalam skripsi : Theresia, Lasmaria (2008), Dampak PBI No. 6/10/PBI/2004 Terhadap Kinerja Keuangan Bank Go Public, STIE-IBS, Jakarta, Skripsi : Tidak Diterbitkan.
Suwito, Edy dan Herawaty (2005), Analisis Pengaruh Karakteristik Perusahaan Terhadap Tindakan Perataan Laba yand Dilakukan oleh Perusahaan yang Terdaftar di BEJ, SNA 8, Solo.
Syahriana, Nani (2006), Analisis Perataan Laba dan Faktor-Faktor yang Mempengaruhi pada Perusahaan Manufaktur di Bursa Efek Jakarta (2000- 2004), Skripsi S-1, FE Universitas Islam Indonesia, Yogyakarta.
Zuhroh, D. (1996), Faktor-Faktor yang Berpengaruh Pada Tindakan Perataan Laba pada Perusahaan Go Publik di Indonesia, Tesis S-2, Program Pasca Sarjana Universitas Gajah Mada, Yogyakarta.
Bayraksan, G., & Love, D. K. (2015). Data-Driven Stochastic Programming Using Phi-Divergences. The Operations Research Revolution, September, 1–19. https://doi.org/10.1287/educ.2015.0134
Calero, N., Muñoz, J., Cox, P. W., Heuer, A., & Guerrero, A. (2013). Influence of chitosan concentration on the stability, microstructure and rheological properties of O/W emulsions formulated with high-oleic sunflower oil and potato protein. Food Hydrocolloids, 30(1), 152–162.
Chen, H. I., Wolf, J. A., Blue, R., Song, M. M., Moreno, J. D., Ming, G. li, & Song, H. (2019). Transplantation of Human Brain Organoids: Revisiting the Science and Ethics of Brain Chimeras. Cell Stem Cell, 25(4), 462–472. https://doi.org/10.1016/j.stem.2019.09.002
Ebeed, H. T., Hassan, N. M., Keshta, M. M., & Hassanin, O. S. (2019). Comparative analysis of seed yield and biochemical attributes in different sunflower genotypes under different levels of irrigation and salinity. Egyptian Journal of Botany, 59(2), 339–355.
Garry, D. J., Caplan, A. L., & Garry, M. G. (2020). Chimeric Humanized Vasculature and Blood: The Intersection of Science and Ethics. Stem Cell Reports, 14(4), 538–540. https://doi.org/10.1016/j.stemcr.2020.03.016
Go, R.-E., Hwang, K.-A., Kim, Y.-S., Kim, S.-H., Nam, K.-H., & Choi, K.-C. (2015). Effects of palm and sunflower oils on serum cholesterol and fatty liver in rats. Journal of Medicinal Food, 18(3), 363–369.
Jiang, R., & Guan, Y. (2016). Data-driven chance constrained stochastic program. Mathematical Programming, 158(1–2), 291–327. https://doi.org/10.1007/s10107-015-0929-7
Johnson, D. G. (2010). The role of ethics in science and engineering. Trends in Biotechnology, 28(12), 589–590. https://doi.org/10.1016/j.tibtech.2010.08.003
Land, K. C., Lovell, C. K., & Thore, S. (1994). Chance-constrained data envelopment analysis. Vi(October 2017).
Morita, H., & Seiford, L. M. (1999). Characteristics on Stochastic Dea Efficiency : Reliability and Probability Being Efficient. Journal of the Operations Research Society of Japan, 42(4), 389–404. https://doi.org/10.15807/jorsj.42.389
Tran, L. T., & Nguyen, T. S. (2021). Motivation and mathematics achievement: A Vietnamese case study. Journal on Mathematics Education, 12(3), 449–468.
Wijnen, M., Loyens, S., Smeets, G., Kroeze, M., & van der Molen, H. (2017). Students’ and teachers’ experiences with the implementation of problem-based learning at a university law school. Interdisciplinary Journal of Problem-Based Learning, 11(2).
Yasin, S., Haseeb, K., & Qureshi, R. J. (2012). Cryptography based e-commerce security: a review. International Journal of Computer Science Issues (IJCSI), 9(2), 132.
Zhu, Q. (2020). Ethics, society, and technology: A Confucian role ethics perspective. Technology in Society, 63, 101424. https://doi.org/10.1016/j.techsoc.2020.101424
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