Description of Financial and Governance Factors on Income Smoothing in Non-Cyclical Consumer Companies

ABSTRACT : This study aims to describe the characteristics of cash holdings, bonus plans, tax burdens, the proportion of independent commissioners, and income smoothing practices in non-cyclical consumer sector companies listed on the Indonesia Stock Exchange for the 2018–2023 period. The study employed a descriptive, quantitative approach with a purposive sampling technique, yielding 164 company-year observations. Data were analyzed using descriptive statistics to describe the minimum, maximum, average, and standard deviation values of each research variable. The results show that non-cyclical consumer companies have relatively high cash holdings, with substantial heterogeneity across companies. Most companies implement profit-based bonus plans, which can influence managerial behavior in financial reporting. Tax burdens vary considerably, reflecting differences in tax planning strategies and company operational characteristics. Furthermore, income smoothing practices are still found in almost half of the study sample, although they do not dominate it. These findings indicate that income smoothing practices in the non-cyclical consumer sector are influenced by a combination of financial factors and corporate governance mechanisms. This study provides implications for investors, regulators, and stakeholders in assessing earnings quality and the effectiveness of corporate oversight.