Detail Inovasi Perguruan Tinggi


Tema: International Conference on Sustainability in Business
Judul: The Influence of Income Smoothing Toward Stock Price Changes on The Banking Companies in Indonesia Stock Exchange
Perguruan Tinggi: Universitas Widyatama
Jenis/sdm: dosen/0430088001

Tahun: 2010

For investors, the financial statements are the basis to analyze stocks as well as to predict an important prospect for future earnings. In general, companies with earnings growth rates that are stable and do not fluctuate, are more of interest among investors. Companies tend to make the practice of income smoothing, which aims to minimize risk and enhance shareholder value. The practice of income smoothing can be done with the hope of providing a beneficial effect of share value and performance of managers. This study aims to determine the influence of income smoothing towards stock price changes in the banking industry in the Indonesian Stock Exchange. The sample data was taken from financial statements of banks listed in the Indonesian Stock Exchange for the period of 2004 to 2009. This research uses descriptive analytical methods and inferential methods whereby the inferential methods used are correlation and regression. Results show that income smoothing did not have a significant effect on stock price changes in the banking industry in the Indonesian Stock Exchange.