THE EFFECT OF PROFITABILITY, CASH HOLDING, COMPANY SIZE, AND FINANCIAL LEVERAGE ON INCOME SMOOTHING WITH GCG AS A MODERATING VARIABLE

This research aims to determine the influence of company size, share value, profitability, and financial leverage on income smoothing and the moderating role of GCG on the influence of company size, share value, profitability, and financial leverage on income smoothing. This research uses quantitive method , purposive sampling, and logistic regression analysis with SPSS 20. This research shows that profitability has a negative effect on income smoothing. company size, share value, and financial leverage do not affect incomes smoothing. GCG cannot moderate the influence of company size and share value on income smoothing. GCG can strengthen the influence of profitability and financial leverage on income smoothing.

This research intends to know The Effect Of Company Size, Profitability and Financial Leverage To Income Smoothing Practice With Good Corporate Governance As Moderator Variable For Manufacturing Industry Consumer Goods That Registered At Indonesia Stock Exchange 2016-2018. Earlier research showing different result. Reserch is needed to re-examine the effect of two variables on income smoothing by adding good corporate governance as moderator variable. There are 53 companies in manufacturing industry consumer goods that registered at Indonesia Stock Exchange 2016-2018 research population. based on criteria purposive sampling obtained 31 companies that meet research criteria. This research is using analytical data testing SmartPLS (Partial Least Square). This research resulted in independent variables such as company size affecting income smoothing, while profitability and financial leverage are not affected by income smoothing. Good corporate governanceas a moderating potential variable (Homologiser Moderator) on the effect of company size on income smoothing, profitability on income smoothing, financial leverage on income smoothing.

The conflict of interest between managers (agents) and the owner (principals) occurs all the time, although the level of the conflict is not always similar. This is because there are separation roles or a difference of interests. In many Indonesian banks, the implementation of Good Corporate Governance (GCG) is mandatory. But, in manufacturing companies in Indonesia, GCG is still not a must. So, what is the role of GCG in conjunction with firm value in manufacturing companies? In addition, many manufacturing companies use earnings management as a benchmark of firm value. It is clear that earnings management can be placed as an antecedent of firm value. The purpose of this research is to analyze the determinants of firm value in relation to earnings management and the mechanism of GCG as a moderating variable. The GCG is not viewed as an antecedent variable. The research sample is 46 companies in the entire industry of consumer goods of manufacturing companies in the Indonesia Stock Exchange. By specific considerations, the number of the sample is reduced to 39 out of 46 companies. The method used is a moderated regression analysis (MRA). The results show that the earnings management and the mechanism of GCG have an impact on the firm value. The dimension of GCG, namely, independent commissioner, managerial ownership, and audit quality can be placed as moderating variables and as determinants of firm value. In order to increase the firm value, it is advisable that this industry should strictly apply the mechanism of GCG as mandatory. However, the issue of GCG as an independent or moderating variable still remains debatable.

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.

Profit is an important thing for the survival of the company. Investors often only pay attention to profits without regard to the procedures used to generate earnings information. Income smoothing is a tool to minimize the fluctuations in earnings that will be reported and more to cover the information that should be disclosed. This study aims to examine the effect of return on assets, net profit margins, financial leverage, company size, and cash holding on income smoothing practices in manufacturing companies listed on the Indonesia Stock Exchange in the period 2016-2018. The sample of this research is manufacturing companies listed on Indonesia Stock Exchange during the 2016-2018 period. The total sample used was 69 companies with observational data obtained as many as 207 samples over three years. The sampling technique used was non-probability sampling using a purposive sampling method and the analysis technique used was logistic regression analysis with the help of SPSS 22.0 software. The conclusion of this study is that return on assets and firm size negatively affect the income smoothing practices, net profit margins have a positive effect on income smoothing practices, financial leverage and cash holding have no effect on income smoothing practices.

This study aims to examine the role of good corporate governance in influencing the relationship between family ownership, institutional ownership, and political connections with related party transactions (RPT). The research method uses a quantitative approach with secondary data. Samples using purposive sampling techniques were obtained from 36 mining companies listed on the Indonesia Stock Exchange in the 2017-2022 period. From this sampling technique, after removing incomplete data and outliers, 211 observable data were obtained. Data analysis used moderated regression analysis. The results of the study indicate that good corporate governance is able to moderate the relationship between institutional ownership and political connections with RPT but is unable to moderate between family ownership and RPT. The practical implications of this study can be used as a consideration for the government to make regulations so that the implementation of good corporate governance is more effective in companies whose shares are majority owned by families

This study aims to analyze the impact of investment decisions, funding strategies, and financial performance on firm value in the Indonesian banking sector, while examining the moderating role of Good Corporate Governance (GCG) using Moderated Regression Analysis (MRA). Data were collected from banking companies listed on the Indonesia Stock Exchange (IDX) during 2019–2023 through purposive sampling. The analysis was conducted using MRA to examine the relationships between the independent variables (investment decisions, funding strategies, and financial performance), the dependent variable (firm value), and the moderating interactions of GCG. The results show that investment decisions have an effect but are not significant on firm value, while funding strategies and financial performance have a significant influence. The key finding from the moderation analysis reveals that GCG strengthens the relationship between financial performance and firm value. However, GCG fails to moderate the relationship between investment decisions and firm value, as well as between funding strategies and firm value. The implications of this study emphasize the importance of implementing GCG to enhance firm value through optimizing funding strategies and improving financial performance. For practitioners, these findings encourage the integration of GCG principles into financial decision-making. At the same time, for regulators, the results can serve as a basis for formulating policies that support better GCG implementation in the banking sector. For academics, this research provides a foundation for further studies on factors influencing firm value and the role of GCG across various industries

This research begins with phenomenon regarding the difference in interests between the government and taxpayers that can cause tax avoidance actions. This study aims to determine the influence of business strategy and capital intensity on tax avoidance with good corporate governance as a moderating variable. This research was conducted on companies listed on the Indonesia Stock Exchange from 2018 to 2022, using causality data. The sample was determined using purposive sampling, consisting of 36 companies. The data analysis techniques used are moderated and multiple regression analysis using e-views 13. The novelty research through the role of good corporate governance as moderation. The research results show that business strategy has no effect on tax avoidance while capital intensity has a significant effect. Good corporate governance cannot moderate this influence. The implementation of business strategies and good corporate governance has no influence in reducing tax avoidance, so it’s necessary to consider other external factors.

The financial performance of a company reflects its ability to run and manage its operations while strictly adhering to prudent financial administration principles. Good financial performance often mirrors the implementation of Good Corporate Governance (GCG) principles in a company. The application of GCG provides a solid foundation for a company to conduct its operations transparently, ethically, and accountability. The objective of this research is to analyze the implementation of GCG and the capabilities of big data analysis on financial performance, as well as to examine the mediating role of big data analysis in the relationship between GCG and financial performance. The research method employed is quantitative, and data were obtained through a survey questionnaire distributed using a Likert Scale of 1-5. Random sampling was employed to select 258 samples from manufacturing companies that are State-Owned Enterprises (SOE/BUMN) listed on the Indonesia Stock Exchange (ISE/BEI). Data collection took place from March 2023 to May 2023. Respondents included staff and managers from these BUMN companies. The collected data were analyzed using Structural Equation Modeling (SEM) with SmartPLS software. The research findings indicate that GCG has a positive and significant influence on big data analysis, providing a foundation for digital transformation. Furthermore, GCG also contributes positively and significantly to the financial performance of the company. Big data analysis has proven to have a positive impact on financial performance, indicating the role of technology in optimizing financial results. Another interesting finding is that big data analysis mediates the relationship between GCG and financial performance, highlighting the crucial role of technology in connecting good corporate governance practices with optimal financial outcomes.

This study aims to examine variable-variable firm size, profitability, financial leverage, managerial ownership and devident payout ratio to find companies that perform income smoothing practices and that not doing income smoothing practices listed in the Indonesia Stock Exchange (IDX) of the year 2008 - 2012. This study uses a quantitative approach, where the data used for the study are the financial statements of the years 2008-2012. The samples are 265 companies for 5 years in companies listed on the Indonesia Stock Exchange and were selected using purposive sampling method. Subsequently the samples were classified into groups grader profit and not income smoothing using Eckel. Analysis of the data obtained performed using logistic regression analysis. The test results of five independent variables using logistic regression showed that company size and financial leverage effect on income smoothing practices while to profitability, managerial ownership , and devident payout ratio has no effect on income smoothing practices

This research was designed to examine factors that influence the practice of income smoothing of company size, company profitability, financial leverage, the net profit margin, and operating profit margin. The separation between companies that perform smoothing earnings and that do not perform by using Index Eckel against operating profit for the company's chemical industry and consumer goods registered in the Indonesian Stock Exchange. Sample research accounted for 36 companies with a sub sample of 180 financial statement data. Observations were made over five years,namely 2005,2006,2007,2008,2009. Factors not affecting income smoothing practices are summarized in the form of the null hypothesis. Statistical analysis consisted of: (1) univariate tests, to determine whether significant differences between the company and not leveler leveler, in this case using t-test if normally distributed data and Mann-Whitney test if data were not normally distributed, (2) multivariate test, using logistic regression to determine the factors that affect income smoothing. The result of calculation by Eckel Index shows that as many as 25 companies that make the practice of income smoothing. While the results of logistic regression analysis of four independent variables suspected to affect the practice of income smoothing turns out company size, company profitability, financial leverage, the net profit margin and operating profit margin has no effect on practice income smoothing. Key Word : Perataan Laba ( income smoothing ), manajemen laba ( earnings management )

Income smoothing is an action carried out deliberately to reduce profit fluctuations in carrying out company per-formance reporting, so that it appears stable and healthy in the eyes of investors. This research aims to obtain em-pirical evidence about the influence of audit quality, return on assets, and net profit margin on income smoothing with financial leverage as a moderating variable. The sample in this research uses secondary data obtained from the financial reports of companies in the consumer goods industry sector listed on the Indonesian Stock Exchange (BEI) from 2020 to 2023. This type of research is quantitative research. The sampling method used purposive sampling and 20 companies were sampled during the 4 years of research with a total of 80 observation data. The analysis technique used in this research is using logistic regression analysis with the help of SEM-PLS 2024 soft-ware. The results of this research partially show that audit quality, return on assets and financial leverage have a significant and influential effect on income smoothing practices, while net profit margin has no effect on income smoothing and financial leverage cannot strengthen the relationship between audit quality, return on assets and net profit margin on income smoothing.

This study examine about income smoothing in subsector security company of finance companies at Indonesia Stock Exchange. Also examine the influence of company size, financial leverage and net profit margin to income smoothing. Eckel index and multiple regession is used to determine the income smoothing practice. Population of this research are security company are listed in the Indonesia Stock Exchange in 2010-2014. Samples were determined by the census methods, with 9 companies. The hypothesis use fixed effect model (FEM)and multiple regression to examine the influence of size of the company, financial leverage and net profit margin to income smoothing practice with using Eviews 8.The result of this study showed that financial leverage affects significantly to income smoothing. Size of company and net profit margin does not affect significantly to to income smoothing. Keywords : Size Of The Company, Financial Leverage, Net Profit Margin, And Income Smoothing.

This study aims to test whether company size, financial leverage, profitability, and dividend payout ratio affect earnings smoothing practices in LQ-45 index companies on the Indonesia Stock Exchange in 2018-2020. This research uses quantitative methods. The population in this study is the LQ-45 company index with a sample recruitment technique using purposive sampling. The selected samples were 19 companies through predetermined sample criteria. Hypothesis testing uses logistic regression analysis, and data is processed using E-Views 10 software. The results of this study indicate that company size has a significant positive effect on the practice of the role of profit, financial leverage has a significant and negative effect on the practice of the role of profit, profitability has an effect and is significant positive effect on income smoothing practices, dividend payout ratio has no effect on income smoothing practices in LQ 45 index companies on the Indonesia Stock Exchange in 2018-2020.

This study aims to determine the effect of profitability, dividend policy, financial leverage on income smoothing practices and the effect of moderating managerial ownership structure and firm size on the effect of profitability, dividend policy, financial leverage on income smoothing practices. The research design used causal quantitative. The population of this study were all manufacturing companies on the Indonesia Stock Exchange as many as 157 companies. The sampling technique used purposive sampling with a total sample of 30 companies. The data analysis technique used moderated regression analysis. The results show that (1) profitability had a significant negative effect on income smoothing practices, (2) dividend policy had a significant positive effect on income smoothing practices, (3) financial leverage had a significant positive effect on income smoothing practices, (4) managerial ownership structure strengthens the negative effect of profitability on income smoothing practices, (5) managerial ownership structure weakens the positive effect of dividend policy on income smoothing practices, (6) managerial ownership structure weakens the positive influence of financial leverage on income smoothing practices, (7) firm size weakens the negative effect of profitability on earnings smoothing practices. income smoothing, (8) firm size strengthens the positive effect of dividend policy on income smoothing practices, and (9) firm size strengthens the positive effect of financial leverage on income smoothing practices.