PENGARUH KEBIJAKAN PERUSAHAAN DAN NILAI PERUSAHAAN TERHADAP INCOME SMOOTHING

Abstract

This research aimed to examine and analyze the effect of firm policy and its value on income smoothing. While,
the policies were included dividend policy, debt policy, and investment policy. Moreover, the population was LQ-
45 index companies which were listed on Indonesia Stock Exchange (IDX) during 2014-2018. Furthermore, the
data collection technique used purposive sampling, in which the sample was based in criteria given. In line with,
there were 25 samples per year or 125 firm years. Addictionally, the hypothesis testing used logistic regression. In
addition, the research ressult concluded dividend policy and investment policy did not effect on income smoothing
of LQ-45 index companies which were listed on Indonesia Stock Exchange (IDX) during 2014-2018. On the other
hand, debt policy as well as firm value had positif effect on income smoothing of LQ-45 index companies which
were listed on Indonesia Stock Exchange (IDX) during 2014-2018. This used to have investors interest and
companies creditor. In other words, they had to do some efforts in order to maintain its profit stability which
company owned in each period. One of the efforts was having income smoothing.
Keywords: firm policy, firm value, income smoothing