International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064


Downloads: 106 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper | Economics and Business | Indonesia | Volume 9 Issue 5, May 2020


The Effect of Earnings Volatility and Income Smoothing on Firm Values before and after Application of Fair Value in Agriculture Companies in ASEAN

Wona Martinanda M | Alwan Sri Kustono [7] | Siti Maria Wardayati [3]


Abstract: Company value illustrates the company's ability to manage the resources owned by the company. High company value is the desire of company owners, because, with the high company value, the prosperity of shareholders is also high. Company value is influenced by several factors. First, earnings volatility, in this case investors tend to choose stable earnings rather than earnings that tend to be volatile. Second is the change in accounting methods. Changes in measurement methods that previously used historical costs, then must change using the fair value method. The use of this method is considered to cause artificial volatility of market prices. . When profit volatility is high, the company will try to anticipate it by doing income smoothing. This study aims to determine earnings volatility, affect the income smoothing, and firm value. In addition to knowing income smoothing affects the value of the company in agricultural companies in ASEAN. The population in this study is agricultural companies listed on the ASEAN Exchange in 2009-2014 totaling 14 companies. The sampling technique is done by using Purposive Sampling which produces 70 samples from 2009-2014. The tool used to test hypotheses uses path analysis with SPSS version 25. The results show that volatility has no significant effect on income smoothing. For hypothesis 2 it is concluded that volatility tends to have a positive effect on firm value prior to the application of fair value. While hypothesis 3 can be concluded that earnings volatility has a negative effect on income smoothing.


Keywords: Biological Assets, Fair Value, Firm Value, Indeks Eckel, Income Smoothing


Edition: Volume 9 Issue 5, May 2020,


Pages: 659 - 665


How to Download this Article?

You Need to Register Your Email Address Before You Can Download the Article PDF


How to Cite this Article?

Wona Martinanda M, Alwan Sri Kustono, Siti Maria Wardayati, "The Effect of Earnings Volatility and Income Smoothing on Firm Values before and after Application of Fair Value in Agriculture Companies in ASEAN", International Journal of Science and Research (IJSR), Volume 9 Issue 5, May 2020, pp. 659-665, https://www.ijsr.net/get_abstract.php?paper_id=SR20430100348

Similar Articles with Keyword 'Value'

Downloads: 1 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Analysis Study Research Paper, Economics and Business, India, Volume 12 Issue 9, September 2023

Pages: 866 - 870

Cooperative Economies Collective Growth: A Hyperlocal and Sustainable Approach to Economic Exchange

Sehej Singh

Share this Article

Downloads: 2

Comparative Studies, Economics and Business, Congo (DRC), Volume 10 Issue 8, August 2021

Pages: 134 - 141

Sociocultural Context and Female Entrepreneurship in Lubumbashi in the Democratic Republic of Congo

Mupeta Mutwila Tresor

Share this Article
Top