Profitability Effect on Smoothing of Income with Size of Firm as Moderating Variable in Manufacturing Corporates

DOI

10.2991/aebmr.k.220501.014How to use a DOI?

Keywords

Income Smoothing; Firm Size; Net Profit Margin; Return on Equity

Abstract

Empirically, this research examines the effect of profitability on income smoothing practices with the moderating variable of firm size in the manufacturing industry during the 2017 – 2019 period which is listed on the Indonesia Stock Exchange. 75 data used in this research were selected 225 data using purposive sampling method with a total during the research period. Financial statements are the data used in this research. Econometric view software (EViews) version 10 was used to process the data. The results showed that net profit margin had a significant positive effect on income smoothing practices, return on equity had a significant negative effect. Moderating variable Firm size has no significant effect on the relationship between net profit margins and income smoothing practices as well as on the relationship between return on equity and income smoothing practices.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Rini Tri Hastuti
AU  - Richard Andrew
AU  - Muhammad Bintang Prajogi
PY  - 2022
DA  - 2022/05/11
TI  - Profitability Effect on Smoothing of Income with Size of Firm as Moderating Variable in Manufacturing Corporates
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 80
EP  - 86
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.014
DO  - 10.2991/aebmr.k.220501.014
ID  - Hastuti2022
ER  -