Income smoothing on market reaction: Environmental performance as a moderation variable

This study analyzes income smoothing with environmental performance on market reactions on the Indonesia Stock Exchange for manufacturing companies in 2016-2018. It uses a purposive sampling technique. This is a conceptual paper that discusses sensitive issues related to income smoothing and environmental performance. The Eckel Index and abnormal returns are used as a proxy for income smoothing and evaluating market reactions using moderating regression analysis (MRA). Hypothesis includes income smoothing with a positive effect on market reactions and environmental performance as a moderating variablea