Effect of Companies That Do and Do Not Perform Income Smoothing on Automotive Sector Company Value

Febrianty, Ria Kumala

2018

Abstract

The purpose of this study was to determine the effect of companies that do and do not perform income smoothing on the value of the company specifically in the Automotive Sector company in the Indonesia Stock Exchange with the period of 2012-2017. The method used in this study was quantitative descriptive analysis, namely: calculate income smoothing using the Eckel index method and calculating company value, Price Earning Ratio (PER) and Price Book Value (PBV). The results show that in this sector, 2 of 6 companies that were proven to perform income smoothing with the Eckel index calculation value below 1, namely AUTO and INDS. There were 4 of the 6 companies that had overvalue above the criteria of PER analysis, the four companies were ASII, AUTO, INDS, and NIPS. There were 4 companies from 6 companies that had overvalue above the criteria from PBV analysis, the four companies were ASII, AUTO, NIPS, and SMSM. Companies that had proven to have income smoothing such as AUTO and INDS on average had good PBV value. Companies that performed income smoothing tend to increase the value of the company in terms of Price Book Value ratio except for INDS, in PBV calculations the INDS company had a bad value because it was below the industrial standard. Companies that had proven to have income smoothing such as AUTO and INDS on average had good PER value.

Paper Citation

in Harvard Style

Febrianty. and Kumala R. (2018). Effect of Companies That Do and Do Not Perform Income Smoothing on Automotive Sector Company Value. In Proceedings of the 2nd Forum in Research, Science, and Technology - FIRST, ISBN 978-989-758-574-6, pages 75-80. DOI: 10.5220/0009152700002500

in Bibtex Style

@conference{first18,
author={Febrianty and Ria Kumala},
title={Effect of Companies That Do and Do Not Perform Income Smoothing on Automotive Sector Company Value},
booktitle={Proceedings of the 2nd Forum in Research, Science, and Technology - FIRST,},
year={2018},
pages={75-80},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009152700002500},
isbn={978-989-758-574-6},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Forum in Research, Science, and Technology - FIRST,
TI - Effect of Companies That Do and Do Not Perform Income Smoothing on Automotive Sector Company Value
SN - 978-989-758-574-6
AU - Febrianty.
AU - Kumala R.
PY - 2018
SP - 75
EP - 80
DO - 10.5220/0009152700002500