Open AccessTHE IMPACT OF BOARD INDEPENDENCE, PROFITABILITY, LEVERAGE, AND FIRM SIZE ON INCOME SMOOTHING IN CONTROL OF AGENCY CONFLICT
Author(s) -
Agustin Ekadjaja,
Andre Chuandra,
Margarita Ekadjaja
Publication year - 2020
Publication title -
dinasti international journal of education management and social science
Language(s) - English
Resource type - Journals
eISSN - 2686-6358
pISSN - 2686-6331
DOI - 10.31933/dijemss.v1i3.169
Subject(s) - smoothing , profitability index , leverage (statistics) , nonprobability sampling , business , index (typography) , control (management) , accounting , economics , finance , statistics , computer science , mathematics , management , population , demography , sociology , world wide web
This research is aimed to earn empirical results about the effect of board independence, profitability, leverage and firm size on income smoothing. The study used purposive sampling as its sampling method on manufacture companies that’s listed on BEI for years 2015-2017. Information for this research was acquired from multiple online sources that store financial reports of companies. This research used Eckel Index to determine if a corporation did an income smoothing on its financial report or not. The results were significant relationships between board independence and income smoothing and between profitability and income smoothing while insignificant relationships were found in between leverage and income smoothing and between firm size and income smoothing. To improve this study there are mulitple ways that has been written in conclusion part.