Economics & Commerce
DOI: 10.18510/hssr.2020.8146
Submitted: 2020-01-26
Published: 2020-01-26

FACTORS INFLUENCING INCOME SMOOTHING PRACTICE IN THE OIL AND NATURAL GAS MINING COMPANIES DURING 2012-2016 PERIOD

University of Balikpapan, Indonesia
Airlangga University, Indonesia
Airlangga University, Indonesia
STIE MADANI Balikpapan, Indonesia
University of Balikpapan, Indonesia
Income Smoothing Practice Oil Natural Gas Mining Financial Leverage Profitability Public Ownership

Abstract

Purpose of the study: This study aims to determine factors that influence the practice of income smoothing in a company.

Methodology: Method of analysis applied logistic regression. This study employed a logistic regression analysis. The use of logistic regression is because the dependent variable is a dummy variable.

Main Findings: Results of the test results show that company size significantly influences the income smoothing practice; while for variables of financial leverage, profitability, and public ownership partially give no effect on the practice of income smoothing.

Applications of this study: Observations were done in oil and natural gas mining companies during 2012-2016.

Novelty/Originality of this study: The results of this study show that the size of the company affects the practice of income smoothing in the oil and natural gas mining companies listed in Indonesia Stock Exchange during the 2012-2016 period. Meanwhile, the financial leverage, profitability, and public ownership partially have an insignificant influence on the practice of income smoothing.

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