The Influence of Financial Leverage, Information Asymmetry, and Profitability on Income Smoothing with Good Corporate Governance as a Moderation Variable

DOI

10.2991/978-94-6463-400-6_76How to use a DOI?

Keywords

Financial Leverage; Asimetri Informasi; Profitabilitas; Income Smoothing dan Good Corporate Governance

Abstract

“This study aims to examine the effects of financial leverage, information asymmetry, and profitability on income smoothing, and how the effects of financial leverage, information asymmetry, and profitability on income smoothing are moderated by good corporate governance. The sample in this study is mining sector companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2021. Data collection was carried out by tracing annual financial statements, total revenue, total debt, total assets, or related information that were selected as samples in this study. The population size in this study was 63 mining companies”. After being selected using purposive sampling methods, a sample of 29 companies was obtained for 5 years, so that the total observation of this study was 145 financial statements. The data analysis used was with the help of the Statistical Product and Service Solutions (SPSS) Ver. 25 program. The results of the study showed that: 1) Financial leverage has a positive effect on income smoothing. 2) Information asymmetry has a positive effect on income smoothing. 3)Profitability has a negative effect on income smoothing.4) Good corporate governance can weaken the effect of financial leverage on income smoothing.5) Good corporate governance can weaken the effect of information asymmetry on income smoothing.6) Good corporate governance can strengthen the effect of profitability on income smoothing.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Muhammad Satria
AU  - Amiruddin
AU  - Syarifuddin Rasyid
PY  - 2024
DA  - 2024/05/22
TI  - The Influence of Financial Leverage, Information Asymmetry, and Profitability on Income Smoothing with Good Corporate Governance as a Moderation Variable
BT  - Proceedings of the 8th International Conference on Accounting, Management, and Economics (ICAME 2023)
PB  - Atlantis Press
SP  - 989
EP  - 1006
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-400-6_76
DO  - 10.2991/978-94-6463-400-6_76
ID  - Satria2024
ER  -