Discretionary Accounting Choice and Management Opportunistic  Behavior to Manage Income

Income smoothing (IS) practice is "the smoothing of fluctuations company income levels that are considered normal for company". IS manipulation has a clear goal, which is to generate income flows that continue increase stably. There are several ways that companies can use to do IS practice for example: changes in accounting methods. In this research, income smoothing practices of Indonesian listed manufacturing firms were detected through empirical tests using changes in discretionary accounting (DAC). Samples of listed manufacturing companies classified as smoothing and non-smoothing using Moses smoothing behavior index. The results show that the possible motivation of DAC transactions is income smoothing. Two independent variables such as institutional ownership and external audit quality have a significant positive effect on IS practice but the company size has no influence on IS practice.

Download Full-text

Income smoothing practices and empirical testing using discretionary accounting changes

Journal of Economics Business and Accountancy Ventura ◽

10.14414/jebav.v17i1.271 ◽

2014 ◽

Vol 17 (1) ◽

pp. 117

Author(s):

Theresia Trisanti

Keyword(s):

Stock Price ◽

Audit Quality ◽

Financial Statements ◽

Income Smoothing ◽

Listed Firms ◽

Empirical Tests ◽

Market Expectations ◽

Accounting Changes ◽

Clear Objective ◽

Behavior Index

Financial statements of listed firms are analyzed by financial analysts and investors. In this case, the firms may suffer from stock price declines if they do not meet market expectations. Listed firms may not only have incentives to avoid income declines and losses, they also have incentives to meet or beat market expectations in order to pre- vent declines in stock price. Income smoothing (IS) is the intentional dampening of fluctuations about some levels of income that is considered to be normal for a firm. IS manipulation has a clear objective, which is to produce a steadily growing stream of income. In this study, income-smoothing practices of Indonesian listed companies are detected through empirical tests using discretionary accounting changes (DAC) as IS instrument. Sample firms are classified as smoothers and non-smoothers using income smoothing behavior index. Results show that possible motivations of DAC transac- tions are income smoothing. The two independent variables such as external audit quality institutional ownership have significant influence towards IS practices. But, the type of industry has no significant relationship towards IS Practices.

Download Full-text

Pengaruh Ukuran Perusahaan, Likuiditas, Dan Konservatisme Akuntansi Terhadap Kualitas Laba

JURNAL EKSPLORASI AKUNTANSI ◽

10.24036/jea.v2i4.319 ◽

2020 ◽

Vol 2 (4) ◽

pp. 3793-3807

Author(s):

Rahmadini Safitri ◽

Mayar Afriyenti

Keyword(s):

Firm Size ◽

Sampling Method ◽

Stock Exchange ◽

Earnings Quality ◽

Accounting Conservatism ◽

Manufacturing Companies ◽

Current Ratio ◽

Independent Variables ◽

Positive Effect ◽

Research Type

The study aims to test empirically the effect of firm size, liquidity, and accounting conservatism of earnings quality. This study uses a quantitative approach with a causal associative research type. The population used in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. By using the purposive sampling method, 155 samples were selected. Earnings quality is measured by regressing the CAR value (Narita, 2020). Company size is measured by LogSize. Liquidity is measured using the current ratio. And accounting conservatism is measured using the Givoly and Hayn (2000) model. The results indicate that firm size has no significant effect on earnings quality, in contrast to liquidity and accounting conservatism has a significant positive effect on earnings quality. For further research, it is hoped that it can expand the object and the year of research because this study only examines manufacturing companies for the 2015-2019 observation year. For other research, it is expected to add independent variables so that the results are better.

Download Full-text

PENGARUH TARIF PAJAK PENGHASILAN, MEKANISME BONUS, DAN TUNNELING INCENTIVES TERHADAP PERGESERAN LABA DALAM MELAKUKAN TRANSFER PRICING DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

Jurnal Akuntansi Trisakti ◽

10.25105/jat.v4i2.4836 ◽

2019 ◽

Vol 4 (2) ◽

pp. 141

Author(s):

Vinola Herawaty ◽

Anne Anne

Keyword(s):

Corporate Governance ◽

Income Tax ◽

Audit Quality ◽

Transfer Pricing ◽

Income Shifting ◽

Manufacturing Companies ◽

Tax Rate ◽

Independent Variables ◽

Good Corporate Governance ◽

Bonus Plan

<p><em>This study aims to examine the effect of income tax rates, bonus plan and tunneling incentives as instruments in detecting income shifting with transfer pricing with moderate good corporate governance. The independent variables in this research are income tax rate, bonus plan and tunneling incentives as well as leverage and firm size as control variables. Good corporate governance mechanism that has been used in this research is audit quality regarding to auditor reputation.The sample was taken by purposive sampling method consisting of 176 manufacturing companies of consumer goods industry sector listed in Indonesia Stock Exchange which have reported complete financial report in period 2013-2016. Test of hypothesis was using SPSS 23 application.The results show that good corporate governance has weaken positive significant for bonus plan and tunneling incentives in detecting income shifting in transfer pricing. Meanwhile, other independent variables income tax rate has no significant effect. </em></p>

Download Full-text

Determinan Tarif Pajak Efektif pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

Global Financial Accounting Journal ◽

10.37253/gfa.v4i1.739 ◽

2020 ◽

Vol 4 (1) ◽

pp. 1

Author(s):

Kennardi Tanujaya ◽

Ivo Valentine

Keyword(s):

Audit Committee ◽

Audit Quality ◽

Institutional Ownership ◽

Capital Intensity ◽

Tax Rates ◽

Significant Positive Effect ◽

Effective Tax Rates ◽

Independent Variables ◽

Dependent Variables ◽

Positive Effect

The purpose of this study is to analyze the determinants of effective tax rates. Effective tax rates are often associated with tax avoidance activities. Independent variables in research are company size, audit committee, leverage, independent commissioners, inventory intensity, return on asset, audit quality, capital intensity, and institutional ownership. GAAP ETR and Current ETR are the dependent variables in this research. 493 companies listed on the Indonesia Stock Exchange from 2014 to 2018 act as the study population. Sample selection is done using a purposive sampling technique. 216 companies that fulfilled certain criteria are included as samples for the study. Data testing with panel data regression is done to test the hypothesis. Test results conclude that the rate of return on assets and firm size had a significant negative effect, while institutional ownership had a significant positive effect on the two dependent variables, namely GAAP ETR and Current ETR. Leverage has a significant positive effect on GAAP ETR but has no significant effect on Current ETR. Other independent variables, namely audit quality, inventory intensity, audit committee, capital intensity, and independent commissioners do not show any significant effect on GAAP ETR and Current ETR.

Download Full-text

PENGARUH UKURAN PERUSAHAAN, LEVERAGE, DAN PROFITABILITAS TERHADAP INCOME SMOOTHING PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2014-2018

JURNAL ILMIAH EDUNOMIKA ◽

10.29040/jie.v5i1.1468 ◽

2021 ◽

Vol 5 (1) ◽

pp. 34

Author(s):

Tri Setyaningsih ◽

Titiek Puji Astuti ◽

Yunus Harjito

Keyword(s):

Firm Size ◽

Quantitative Research ◽

Stock Exchange ◽

Secondary Data ◽

Sampling Technique ◽

Financial Statements ◽

Analysis Data ◽

Income Smoothing ◽

Manufacturing Companies ◽

Positive Effect

This Study aims to examine the effect of firm size, leverage and profitability on income smoothing of the manufacturers registered at the Indonesia’s Stock Exchange in 2014-2018. Type of research in this study is quantitative research. The data used be in the form of secondary data taken based on the company’s financial statements in manufacturing companies listed on Indonesia Stock Exchange in 2014-2018. The sampling technique of this study uses purposive sampling method. The analysis method of this research uses a regression analysis with Eviews 9 Version. Based on the result of analysis data in this research showes that the firm size have a positive effect on income smoothing while the leverage and profitability does not effect on income smoothing in manufacturing companies listed on Indonesia Stock Exchange in 2014-2018. Keywords: Firm Size, Leverage, Profitability, Income Smoothing

Download Full-text

ANALISIS DETERMINAN AUDIT REPORT LAG

Jurnal Riset Akuntansi Kontemporer - Vol 13 No 2 (2021): October Edition ◽

10.23969/jrak.v10i1.1058 ◽

2018 ◽

Vol 10 (1) ◽

pp. 22-27

Author(s):

Gilang Satrya Ramadhan ◽

Majidah Majidah ◽

Eddi Budiono

Keyword(s):

Audit Quality ◽

Stock Exchange ◽

Regression Method ◽

Test Results ◽

Significant Positive Effect ◽

Manufacturing Companies ◽

Audit Report ◽

Multiple Regression Method ◽

Negative Effect ◽

Positive Effect

The purpose of this research is to determine the effect of leverage, size of company, audit quality and accounting result simultaneously or partially to the audit report lag. The type of this research is descriptive verificative. The number of manufacturing companies in the Indonesia Stock Exchange (BEI) over the period of 2011-2015 are 143 companies, then obtained a sample of 110 by purposive sampling. Analysis of data is carried out using multiple regression method. The results showed variable leverage, size company, audit quality and accounting result can explain audit report lag 33.3%. Partial test results showed that leverage did not significantly affect, size company and accounting result have a significant negative effect and audit quality have a significant positive effect on audit report lag.

Download Full-text

Pengaruh Rotasi Audit, Spesialisasi Industri KAP, dan Client Importance Terhadap Kualitas Audit (Studi dengan Pendekatan Earning Surprise Benchmark)

Paediatrica Indonesiana ◽

10.24036/wra.v6i1.101939 ◽

2018 ◽

Vol 6 (1) ◽

pp. 1159

Author(s):

Maya Febrianti Suciana ◽

Mia Angelina Setiawan

Keyword(s):

Logistic Regression ◽

Data Analysis ◽

Audit Quality ◽

Stock Exchange ◽

The Other ◽

Manufacturing Companies ◽

Audit Firm ◽

Purposive Sampling ◽

Independent Variables ◽

Firm Specialization

This research was aimed to examine empirically the effect of several factors to audit quality. These factors are Audit Rotation, Audit Firm Specialization and Client Importance. The population that will be used in this research are company listed in Indonesia Stock Exchange. This study uses sampel of 85 manufacturing companies listed in Indonesia Stock Exchange in the period 2015-2017. In this study, audit quality is measured by earning surprise benchmark. The method used was purposive sampling. The method of data analysis in this study use logistic regression with SPPS version 23. The results of this prove that (1) audit rotation is not proven to have an impact on audit quality, where sig value 0,915 > 𝛼 0,05 which means H1 is rejected (2) audit firm specialization is proven to have an impact on audit quality, where sig value 0,04 < 𝛼 0,05 which means H2 is accepted (3) client importance is not proven to have an impact on audit quality, where sig value 0,809 > 𝛼 0,05 which means H3 is rejected. The amount of Adjusted R is 0.036 gives the sense that rate is 3,6% of level audit quality can be explained by independent variables while 96.4% can be explained by the other independent variabels that are not tested in this study.Keywords: Audit Rotation, Audit Firm Specialization, Client Importance, Audit Quality

Download Full-text

Praktik Perataan Laba dan Faktor - Faktor yang Mempengaruhinya

E-Jurnal Akuntansi ◽

10.24843/eja.2020.v30.i11.p12 ◽

2020 ◽

Vol 30 (11) ◽

pp. 2864

Author(s):

Ni Made Ayu Pinatih ◽

Ida Bagus Putra Astika

Keyword(s):

Logistic Regression ◽

Regression Analysis ◽

Stock Exchange ◽

Income Smoothing ◽

Company Size ◽

Cash Holding ◽

Manufacturing Companies ◽

Financial Leverage ◽

Analysis Technique ◽

Positive Effect

The purpose of this study is to obtain empirical evidence of the influence of company size, profitability, financial leverage, and cash holding on income smoothing practices. The population in this study were 126 manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2018. The method of determining samples by purposive sampling. The number of samples obtained was 48 samples with observations over 5 years so there were 240 observations. The practice of income smoothing is calculated using the eckel index and the analysis technique used is logistic regression analysis. The results of the analysis in this study indicate that company size, profitability, financial leverage, and cash holding have a positive effect on the income smoothing practices of manufacturing companies listed on the Indonesia Stock Exchange for the period 2014 to 2018. This study can provide additional knowledge about the effect of company size, profitability, financial leverage and cash holding on income smoothing practices. Keywords : Company Size; Profitability; Financial Leverage; Cash holding; Income Smoothing.

Download Full-text

The Determinants of Income Smoothing: Study of Indonesian Manufacturing Companies

Conference Series ◽

10.34306/conferenceseries.v3i2.577 ◽

2021 ◽

Vol 3 (2) ◽

pp. 50-61

Author(s):

Sherly Tiana ◽

Karina Harjanto

Keyword(s):

Firm Size ◽

Stock Exchange ◽

Secondary Data ◽

Income Smoothing ◽

Manufacturing Companies ◽

Financial Leverage ◽

Dividend Payout ◽

Natural Logarithm ◽

Negative Effect ◽

Positive Effect

The purpose of this research is to obtain empirical evidence about the effect of profitability, financial, dividend payout ratio and firm size towards income smoothing. The dependent variable of this research is income smoothing measured by Eckel Index. The independent variables of this research are profitability measured by Net Profit Margin (NPM), financial leverage measured by Debt to Assets Ratio (DAR), Dividend Payout Ratio (DPR), and firm size measured by natural logarithm assets. The samples were determined based on purposive sampling method. The sample of this research are 11 manufacture companies that listed in Indonesian Stock Exchange (IDX) in 2016-2018. Secondary data used in this research was analyzed by using logistic regression method. The result of this research are (1) profitability (NPM) has no positive effect towards income smoothing, (2) financial leverage (DAR) has no positive effect towards income smoothing, (3) Dividend Payout Ratio (DPR) has no positive effect towards income smoothing, (4) firm size has significant negative effect towards income smoothing, (5) profitability, financial leverage, Dividend Payout Ratio, and firm size has significant effect towards income smoothing.

Download Full-text

PENGARUH KARAKTER EKSEKUTIF DAN DIMENSI TATA KELOLA PERUSAHAAN TERHADAP PENGHINDARAN PAJAK (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2012-2016)

Journal of Islamic Finance and Accounting ◽

10.22515/jifa.v2i1.1595 ◽

2019 ◽

Vol 2 (1) ◽

pp. 1 ◽

Cited By ~ 1

Author(s):

Sharma Aidha Afriyanti

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Sampling Method ◽

Audit Quality ◽

Stock Exchange ◽

Tax Avoidance ◽

Manufacturing Companies ◽

Purposive Sampling ◽

Positive Effect

The purpose of the study is to analyze the influence of executive character and corporate governance dimensions on tax avoidance in manufacturing companies that listed on the Indonesia Stock Exchange Period 2012-2016. The samples of this study is 37 companies that selected by using purposive sampling method. The results of this study shows that: Executive characters positive effect on tax avoidance. Independent commissioners not effect on tax avoidance. The audit committee not effect on tax avoidance. Audit quality positive effect on tax avoidance.

Download Full-text