Institutional Repository | Satya Wacana Christian University: Pengaruh Perataan Laba Terhadap Kekayaan Pemegang Saham pada Perusahaan Manufaktur yang Terdaftar di Bei Tahun 2007- 2011.
ABSTRACT
This study examines the effect of income smoothing and risk response in the Indonesian market
as a proxy variable of shareholder wealth. The research methodology used is based Wang and
Williams(2006). The sample used in this study were 110 companies listed on the Stock Exchange
during the five years(2007-2011). Hypothesis testing using panel regression analysis. The results
of this study indicate that here is no effect of income smoothing on the market response. This
study also proves that the risk of companies doing income smoothing is higher than that does not
do income smoothing.
Keywords: Income Smoothing, Market Response, Risk
This study examines the effect of income smoothing and risk response in the Indonesian market
as a proxy variable of shareholder wealth. The research methodology used is based Wang and
Williams(2006). The sample used in this study were 110 companies listed on the Stock Exchange
during the five years(2007-2011). Hypothesis testing using panel regression analysis. The results
of this study indicate that here is no effect of income smoothing on the market response. This
study also proves that the risk of companies doing income smoothing is higher than that does not
do income smoothing.
Keywords: Income Smoothing, Market Response, Risk