PENGARUH INCOME SMOOTHING, UKURAN PERUSAHAAN, DAN LEVERAGE TERHADAP MARKET RESPONSE

Abstract

This research aimed to test the effect of income smoothing, firm size, and leverage on market response. The
population of this research were manufacturing companie which were listed on the Indonesia Stock Exchange
within the period of 2015 to 2018. The type of this research was quantitative research in the form of descriptive
analysis that provides a general description of the object under study through data or samples collected. The data
using the secondary data, i.e. the companies’ annual report. The samples of this research were obtained using
purposing sampling method, 220 samples were gained from 55 manufacturing companies listed on the Indonesia
Stock Exchange during 2015 to 2018. Furthermor, the analytical method applied multiple linier regression
analysis and SPSS version 23. The results of this research indicated that (1) the income smoothing had no effect
on market response; (2) the firm size had no effect on market response; and (3) the leverage that was measured by
debt to asset ratio had a positive effect on market response.
Keywords: income, size, leverage, market response