Abstract
<p>The Indonesian government announces that Indonesia will have a new National Capital, one of it’s aims is to smooth the people's economy. Many companies in the construction sector owned by BUMN have long been listed on the Sharia stock exchange. With the existence of this mega project, the recording of profits of go-public companies as well as government-owned companies will receive special attention related to the recording of profits in several previous periods. However, investors must be observant regarding the possibility of companies taking income smoothing actions, some of which are through Return On Assets, Size of the Company and Financial Leverage. The object of research is BUMN construction companies listed in the Jakarta Islamic Index (JII) from 2015 to 2018. The samples used 3 companies based on purposive sampling. Hypothesis testing uses multiple linear regression to test the effect of Return On Assets, Size of the Company and Financial Leverage on Income Smoothing actions by calculating Income Smoothing using the Eckel Index, the analysis technique used is linear regression and the hypothesis testing tool is SPSS 16. The results showed that Return On Assets and Size of the Company had no effect on income smoothing. Meanwhile, Financial Leverage affects income smoothing. Keywords: Return On Asset, Size of The Company, Financial Leverage, Income Smoothing.</p>
Highlights
Indonesia is one of the countries that has a dense population
The calculation of income smoothing, that later the red plate construction company will spearhead the development of a new capital free from income smoothing, so that the government will be able to make correct and accurate decisions regarding everything related to development expenditures
The results of descriptive statistics in this study show that the average construction company owned by BUMN has the value of Sig. 0.204 ˃ 0.05 there is no effect of the Return On Asset (ROA) variable on income smoothing
Summary
Indonesia is one of the countries that has a dense population. In 2017, the population was recorded at 264,000,000. Along with the growth of Indonesia's population, the Government plans to move the State Capital (IKN) to the North Penajam Paser City, East Kalimantan Province. One of the goals of the IKN line is for the Indonesian economy to grow evenly, not centered on Java Island, while Java Island, especially DKI Jakarta, is already very dense and the economies of other islands are lagging behind. The economy is an important instrument for every country to prosper its people. One of the ways to achieve economic distribution outside Java is that infrastructure must supported. The state prioritizes the development of public infrastructure because it is in a development that can increase economic growth and public services equitably
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