Income Smoothing as Dysfunctional Behavior Strategy to Develop Public Opinion of Good Performance

DOI

10.2991/aebmr.k.210831.018How to use a DOI?

Keywords

Company’s Size, Profitability, Financial Leverage, Income Smoothing, Profit Quality

Abstract

Naturally, income smoothing is defined as management intervention in external financial reporting to benefit himself (manager). Mostly, this is an unplanned and direct process carried out by management. On the contrary, intentional income smoothing occurs because of interference from management. This research aimed to investigate the occurrence of income smoothing and estimate the magnitude of other factors in determining income smoothing in a company listed on the Indonesia Stock Exchange for the period 2013-2019. Furthermore, this research investigated the effect of past factors on management behavior in conducting income smoothing strategies. Time Series and Cross-Section data were employed in this research. Therefore, the suitable estimation model was panel data regression (Pooled Regression) equipped with Fixed Effect Model (FEM), Random effects Model (REM), and Hausman Test.

Copyright

© 2021, 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  - Deni Hamdani
AU  - Devyanthi Sjarif
AU  - Nugraha
PY  - 2021
DA  - 2021/09/02
TI  - Income Smoothing as Dysfunctional Behavior Strategy to Develop Public Opinion of Good Performance
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 82
EP  - 85
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.018
DO  - 10.2991/aebmr.k.210831.018
ID  - Hamdani2021
ER  -