KARAKTERISTIK PERUSAHAAN, PRAKTIK CORPORATE GOVERNANCE, KEPUTUSAN KEUANGAN, PERATAAN LABA DAN NILAI PERUSAHAAN

Abstract

This is aimed to investigate the influence of companies characteristics and corporate govern-ance on income smoothing: and the influence of corporate governance and financial decisions on companies value and on public companies listed on Indonesian Stock Exchange (IDX). Moreover, this study is intended to analyse the causality relationship between income smooth¬ing and firm value of the public companies listed at the Indonesian Stock Exchange IDX). This research used samples of 56 public companies listed on Indonesian Stock Exchange (IDX) for the periods of 2000 to 2005, Data were then analysed using simultaneous-equation model involving two-stage least square method. The results of this research showed that type of industry influenced income smoothing while the others companies characteristics variables and corporate governance practice variables do not influence income smoothing. In addi¬tion, investment decision influenced firm value whreas others financial decisions variables and corporate governance practice do not influence firm value. Finally there is no causality relation between income smoothing with firm value. Keywords: earning management, income smoothing, corporate governance, net profit margin, operating profit margin