Factors That Infl uence the Revaluation of Fixed Assets in Manufacturing Sector Companies Listed on the Indonesia Stock Exchange Period 2014-2017

* Corresponding author, email address: 2014310668@students.perbanas.ac.id ABSTRACT This study aims to determine the effect of leverage, liquidity, fi xed assets intensity, and fi rm size on the revaluation of fi xed assets. The population of this study is manufacturing sector companies in Indonesia. The research samples are manufacturing companies listed on the Indonesia Stock Exchange in 2014 2017. Sampling technique is conducted using purposive sampling method. The data used are secondary data. The research data include fi nancial statements of manufacturing companies listed on the Indonesia Stock Exchange (IDX) obtained from ww.idx.co.id in 2014-2017. The data collection strategy in this study is the archive strategy, that is, the data collection derived from existing records or databases. Data analysis is done using logistic regression analysis. The results of this study show that the variables of leverage, liquidity, and fi xed assets intensity have no effect on the company’s decision to carry out fi xed assets revaluation, while the variable of fi rm size has an effect on the company’s decision to carry out fi xed assets revaluation.


INTRODUCTION
According to the Financial Accounting Standard applicable in Indonesia (PSAK) No. 16 of 2015, the entity chooses the cost model or revaluation model as its accounting policy and applies the policy to all fi xed assets in the same class. The purpose of revaluing the company's fi xed assets is to make company able to calculate the income and cost more reasonably so that they can refl ect the companys' real capabilities and values (Waluyo, 2011: 191).
The Financial Accounting Standards Board (in Indonesia: Dewan Standar Akuntansi Keuangan/ DSAK) of the Indonesian Institute of Accountants (in Indonesia: Ikatan Akuntan Indonesia / IAI) has issued PSAK No. 16 related to Fixed Assets. Since the fi rst stage of IFRS (International Financial Reporting Standards) convergence process in 2012, there have been guidelines for entities that wish to carry out assets revaluation in Indonesia. However, some entities are still reluctant to carry out fi xed assets in an accounting manner because they are concerned that they have to pay a high price for the public appraiser or afraid of the tax implications. The PSAK has actually supported the government's policy regarding the revaluation of fi xed assets. This revaluation is done to improve the entity's balance sheet and there will be no additions to the company's cash fl ow that has done revaluation because the calculation is only in the book.
In 2016, President Joko Widodo urged all companies in Indonesia to carry out fi xed assets revaluation. According to the President, the purpose of fi xed asset revaluation was to boost the national economy to be better in 2016, because it would be a force to increase economic growth. Yet, delivering a speech in the trading opening on the Indonesia Stock Exchange (IDX), President Joko Widodo urged all companies, both small and medium-sized companies, to carry out fi xed assets revaluation. The revaluation of fi xed assets could also be used as additional ammunition to boost the economy in 2016. This was evidenced by the success of PLN in strengthening its capital through asset revaluation obtained from the difference in asset value after revaluation which was included in capital. Besides PLN, a number of SOEs such as Pertamina, Bank Mandiri, BRI, BNI, Garuda Indonesia also carried out fi xed assets revaluation. In this year, many companies have experienced sales declines of up to 30%.
Many companies were also affected by the drop in the rupiah exchange rate against the US dollar. By carrying out assets revaluation, the company's fi nancial condition could be saved from bankruptcy. Another benefi t of fi xed assets revaluation is the increase in postrevaluation depreciation costs charged in the company's fi nancial statements which can alleviate the company's tax obligations during the years. The increase in company's fi nancial performance will obviously attract investors. Armed with strong capital, the company can attract funds from initial public offering, bond issuance, and bank loans. (www.neraca.co.id| Tuesday 05/01/2016).
Revaluation of fi xed assets is the revaluation of the company's fi xed assets due to an increase in the value of fi xed assets in the market or due to the low value of fi xed assets in the company's fi nancial statements as a result of devaluation or other causes, so that the value of fi xed assets no longer refl ects fair value. The purpose of the revaluation of fi xed assets is to make company able to calculate income and costs more reasonably so that they refl ect the true capabilities and values of the company.
Leverage can describe the company's ability to pay long-term obligations if the company is liquidated (Sofyan, 2015: 303). The leverage ratios include Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Equity Multiplier, and Interest Coverage or Times Interest Earned. The variable of leverage in this study is measured using Debt to Asset Ratio (DAR) as in the study conducted by Seng and Su (2010). The results of the studies conducted by Tabari and Adi (2014) and Missonier-Piera (2007) show that leverage effects the revaluation of fi xed assets. On the contrary, the results of the studies conducted by Mario and Erly (2015), Resti Yulistia, et al (2015), and Tay (2014) show that leverage does not affect the revaluation of fi xed assets.
Liquidity can be used as an indicator of the company's fi nancial strengths and weaknesses. The liquidity ratio also shows the extent to which current assets can cover current liabilities (Sofyan, 2015: 301). The liquidity ratios include Current Ratio, Quick Ratio, Cash Ratio of Current Assets, Cash Ratio of Current Debt, Current Asset Ratio and Total Assets, Current Asset Ratio, and Total Debt. The liquidity ratio used in this study is current ratio. The result of the research conducted by Tunggul and Aria (2015) shows that liquidity affects the revaluation of fi xed assets. On the contrary, the results of the research conducted by Cut Annisa and Musfi ari (2015) and Tay (2014) show that liquidity does not affect the revaluation of fi xed assets.
Intensity of company's fi xed assets illustrates the amount of company investment in the company's fi xed assets. Fixed assets intensity is a proportion where in the fi xed assets there is a post for companies to add expenses, that is, depreciation expenses caused by fi xed assets (Mulyani, 2014). The fi xed assets intensity is measured by the book value of total fi xed assets divided by total assets. The results of the research conducted by Cut Annisa and Musfi ari (2016) and Tunggul and Aria (2015) show that fi xed assets intensity affects the revaluation of fi xed assets. On the contrary, the results of the research conducted by Tabari and Adi (2014), Resti Yulistia, et al (2015), and Seng and Su (2010) show that fi xed assets intensity does not affect the revaluation of fi xed assets.
Firm size is the size of a company that can be viewed from the specifi ed business fi eld. The size of the company can be determined based on total sales, total assets, and average sales level (Seftianne, 2011). The fi rm size in this study is calculated by the logarithmic formula of the total assets before the revaluation adjustment. The results of the research conducted by Tabari and Adi (2014), Tay (2014), and Seng and Su (2007) show that fi rm size affects the revaluation of fi xed assets, on the contrary, the results of the research conducted by Cut Annisa and Musfi ari (2016), Mario and Erly (2015), Resti Yulistia, et al (2014), and Missonier Piera (2007) show that fi rm size does not affect the revaluation of fi xed assets.
This research is important because in addition to the existence of research gap, this research also provides input to managers regarding what factors need to be considered in choosing a fi xed asset revaluation policy. It is expected that more companies will choose fi xed asset revaluation. The implementation of revaluation of fi xed assets is expected to boost the national economy. Based on the inconsistency of the results of the research and the existence of the research gap, this study aims to reexamine the factors that affect the revaluation of fi xed assets in manufacturing sector companies listed on the Indonesia Stock Exchange in 2014-2017.

THEORETICAL FRAMEWORK AND HY-POTHESIS Positive Accounting Theory
Positive accounting theory is based on the perception that managers, shareholders, and regulators / politicians are rational and they try to maximize their utility which is directly related to their prosperity (Belkaoui, 2012: 188). Positive accounting theory introduced by Watt and Zimmerman (1986) explains why accounting choices are made by managers. Managers are expected to be able to choose a fi xed assets revaluation policy because this policy can reduce the violation of debt agreements. Revaluation of fi xed assets is also believed to be able to boost the economy for the following years. Watt & Zimmerman (1986) also put forward three hypotheses related to opportunistic behavior of management. First, bonus plan hypothesis: this hypothesis states that a manager will choose an accounting model to increase the compensation he will get. Second, debt covenant hypothesis: this hypothesis states that the selection of an accounting model is done to reduce the possibility of violations of debt requirements and bond agreements. Third, political cost hypothesis: this hypothesis states that largesized companies will prefer accounting models that can reduce corporate profi ts in fi nancial statements

Signaling Theory
Signaling theory is a theory that describes an effort taken by company manager, as the party that has more information about the company, to increase the company's stock price by conveying the information to the public (Ross. 1977). Revaluation of fi xed assets is expected to make the manager provide information about fi xed assets that show more real asset value to investors. In addition, the revaluation of fi xed assets can improve the fi nancial position of a company so that investors are interested in investing in the company. The main assumptions of this signaling theory provide space for investors to know what the decisions that will be made related to the value of the company. As a result, any changes in the values of leverage, profi tability, earnings per share, and fi rm size show changing in values that will automatically provide information to investors in giving an assessment related to the value of the company.

Revaluation of Fixed Assets
Revaluation of fi xed assets is the revaluation of the company's fi xed assets due to an increase in the value of fi xed assets in the market or due to the low value of fi xed assets in the company's fi nancial statements as a result of devaluation or other causes, so that the value of fi xed assets no longer refl ects fair value. The purpose of the revaluation of the company's fi xed assets is to make the company able to calculate income and costs more reasonably so that they refl ect the true capabilities and values of the company (Waluyo, 2011: 191). Therefore, it is important for the company to carry out revaluation of fi xed assets to determine the fair value of its fi xed assets.
Based on the Minister of Finance Regulation Number 79 / PMK.03 / 2008 concerning the revaluation of company's fi xed assets, it is explained that the revaluation of company's fi xed assets is carried out As the following: a. All tangible fi xed assets, including land with freehold title (SHM) or rights to build (SHGB); or b. All tangible fi xed assets, excluding land, which are located in Indonesia, are owned, and are used to obtain, collect, and maintain income which is the object of tax.

Leverage
Leverage can be used to describe the company's ability to pay its long-term obligations if the company is liquidated (Sofyan, 2015: 303). The leverage ratios include Debt to Asset Ratio (DAR), Debt to Equity Ratio, Equity Multiplier, and Interest Coverage or Times Interest Earned. The variable of leverage in this study is measured using the Debt to Asset Ratio (DAR) as in the research conducted by Seng and Su (2010).

Liquidity
Liquidity can be used as an indicator of the company's fi nancial strengths and weaknesses. The liquidity ratio also shows the extent to which current assets can cover current liabilities (Sofyan, 2015: 301). The liquidity ratios include Current Ratio, Quick Ratio, Cash Ratio of Current Assets, Cash Ratio of Current Debt, Current Asset Ratio and Total Assets, Current Asset Ratio and Total Debt. The liquidity ratio used this study is current ratio.

Intensity of Fixed Assets
Intensity of company's fi xed assets illustrates the amount of company investment in fi xed assets. The intensity of fi xed assets is a proportion where in the fi xed assets there is a post for companies to add expenses, that is, depreciation caused by fi xed assets (Mulyani, 2014). The intensity of fi xed assets is measured by the book value of total fi xed assets divided by total assets.

Firm Size
Firm size is the size of a company that can be viewed from the specifi ed business fi eld. The size of the company can be determined based on total sales, total assets, and average sales level (Seftianne, 2011). The fi rm size in this study is calculated by the logarithmic formula of the total assets before the revaluation adjustment.

The Effect of Leverage on the Revaluation of Fixed Assets
The leverage ratio describes the extent to which a company is able to pay its longterm obligations. The high leverage of a company can cause a decline in creditor trust in the company. Therefore, companies with a high level of leverage will choose to carry out fi xed assets revaluation to comply with debt agreements and can continue to borrow (Whittered andChan, 1992 in Iatridis, 2011). The better value of the company's fi xed assets achieved after the revaluation of assets can make company get a loan from the creditor. Based on the description, the hypothesis can be formulated as follows: H 1 : Leverage has an effect on the company's decision to carry out fi xed assets revaluation

The Effect of Liquidity on the Revaluation of Fixed Assets
Liquidity can be used as an indicator of the company's fi nancial strengths and weaknesses. Liquidity ratio infl uences the company's policy whether or not to carry out fi xed assets revaluation. The low liquidity ratio illustrates the company's inability to pay off its short-term debt. Low liquidity ratio can make creditors worry about lending funds to the company, because the creditors think that if the company's liquidity is low, there is a possibility that the company cannot afford to pay off the debt the creditor gives. This situation will signal the company to carry out fi xed assets revaluation.
Revaluation of fi xed assets can make the company able to show the actual condition of the company to convince creditors in providing loans. Revaluation of fi xed assets tends to be done by companies that have low liquidity, while companies that have high liquidity do not need to carry out fi xed assets revaluation because they no longer need to think about problems related to creditors, Cut Annisa and Musfi ari (2016). Based on the description, the hypothesis can be formulated as follows: H 2 : Liquidity has an effect on the company's decision to carry out fi xed assets revaluation

The Effect of Fixed Assets Intensity on the Revaluation of Fixed Assets
Fixed assets intensity is a proportion where in the fi xed assets there is a post for companies to add expenses, that is, depreciation caused by fi xed assets (Mulyani, 2014). Revaluation of fi xed assets is worth noting where fi xed assets are the largest portion of total assets which will increase the value of the company. Companies with a high intensity of fi xed assets tend to prioritize the method of recording and recognizing fi xed assets that better refl ect actual asset values. This is in accordance with the purpose of the fi xed asset revaluation method in order that the company can calculate income and costs more reasonably so that they refl ect the true capabilities and values of the company. Better method of recording and recognizing fi xed assets refl ects the value of assets that can actually make a company's fi nancial position show a reasonable position of wealth. Thus, this can make investors interested in investing in the company. Based on the description, the hypothesis can be formulated as follows: H 3 : Fixed assets intensity has an effect on the company's decision to carry out fi xed assets revaluation

The Effect of Firm Size on the Revaluation of Fixed Assets
Firm size is a scale that can classify companies into large and small companies that can be calculated using total assets. Tay (2009) argues that large-sized companies are likely to choose a revaluation model rather than smallsized companies. Large-sized companies will tend to report high profi ts. This report will attract the attention of regulators and other parties who have the power and capacity to make new rules. Revaluation of fi xed assets is an effective way to reduce earnings reporting through increasing depreciation costs as a result of increasing asset revaluation, Seng and Su (2010). In addition to the increased depreciation costs, asset valuation costs are also needed. The cost of assets revaluation can also cause a decrease in corporate profi ts. The greater the company's profi t, the higher the level of supervision and attention of public and government. And the smaller the company's profi t, the lower the level of supervision and attention of the public and government. Based on the description, the hypothesis can be formulated as follows: H 4 : Firm Size has an effect on the company's decision to carry out fi xed assets revaluation The framework underlying this research can be described in Figure 1.

RESEARCH METHOD Sampling
The population of this research is manufacturing companies in Indonesia.

Research Data
The data used are secondary data that include fi nancial statements of manufacturing companies listed on the Indonesia Stock Exchange (IDX) obtained from ww.idx.co.id period 2014-2017. The data collection strategy in this study is the archive strategy, that is, the data collection derived from existing records or databases. Data sources from this archive strategy are primary data and secondary data (Jogiyanto, 2015: 100).

Research Variables
The research variables are dependent variable (revaluation of fi xed assets) and independent variables (leverage, liquidity, fi xed assets intensity, and fi rm size).

Operational Defi nition and Variable Measurement Leverage
Leverage ratio describes the company's ability to pay its long-term obligations if the company is liquidated (Sofyan, 2015: 303). Leverage in this study is measured using the Debt to Asset Ratio as was done in the study conducted by Seng and Su, (2010).

Liquidity
Liquidity describes the company's ability to settle its shortterm obligations. Liquidity also shows the extent to which current assets cover current liabilities (Sofyan, 2015: 301).
Current Assets Current Ratio = Current Debt

Fixed Assets Intensity
Fixed assets intensity is a proportion where in a fi xed asset there is a post for a company to add expense, namely the depreciation expense caused by a fi xed asset (Mulyani, 2014). The fi xed assets intensity is measured using the ratio as in the study conducted by Seng and Su (2010).

Firm Size
Firm size can describe the size of a company viewed from the specifi ed business fi eld. The size of the company can be determined based on total sales, total assets, and average sales level (Seftianne, 2011). Firm size can be measured using the logarithm of total assets before revaluation adjustments (Seng and Su, 2010).

Analysis Tools
The data analysis technique used in this study is a logistic regression analysis. Logistic regression analysis is a data analysis technique used to determine the effect of leverage, liquidity, fi xed asset intensity, and fi rm size on the company's decision to carry out fi xed assets revaluation where the dependent variable is in the form of a dummy variable. Logistic regression analysis does not require the classical assumption test because the logistic regression analysis produces a fi t model analysis which describes whether the data used in this study is good. (Imam Ghozali, 2013: 328). The logistic regression analysis model can be written with the following equation: Where:

RESEARCH RESULTS AND DISCUSSION Descriptive Statistics
Descriptive statistics analysis is used to provide an overview of the variables contained in this study consisting of independent variables (leverage, liquidity, fi xed asset intensity, and fi rm size) and dependent variable (company's decision to revaluate fi xed assets).
The calculation in Table 1 shows that the leverage variable has a standard deviation value of 0.380210 with a mean value of 0.49330. The standard deviation value is smaller than the mean value. This shows that the research data on the leverage variable does not spread or does not vary (homogeneous).
The calculation in Table 1 shows that the liquidity variable has a standard deviation value of 2.450840 with a mean value of 2.61515. The standard deviations value is smaller than the mean value. This shows that the research data on the liquidity variable does not spread or does not vary (homogeneous). The calculation in Table 1 shows that the fi xed assets intensity variable has a standard deviation value of 0.196459 with a mean value of 0.35516. The standard deviation value is smaller than the mean value. This shows that the research data on the fi xed assets intensity does not spread or does not vary (homogeneous).
The calculation in Table 1 shows that the fi rm size variable has a standard deviation value of 1.628465 with a mean value of 21.32628. The standard deviation value is smaller than the mean value. This shows that the research data on fi rm value does not spread or does not vary (homogeneous)

Results of Analysis and Discussion
Based on Table 2 on the regression equation, it can be seen that the regression coeffi cient values of the independent variables of leverage, liquidity, and fi xed assets intensity remain negative. This shows that the independent variables have the opposite direction to the dependent variable. While the independent variable of fi rm size has a positive coeffi cient which indicates that the independent variable is in line with the dependent variable. The results of the logistic regression analysis show that there is only 1 independent variable, or fi rm size, that has a statistically signifi cant effect on the revaluation of fi xed assets, with sig value of 0.013 < α 0.05. Each SIZE increase unit will increase the log of odds of the company in fi xed assets revaluation with a number of 0.226. The relationship between odds and independent variables can be explained that if other variables are considered constant, the odds of companies revaluing fi xed assets increase by a factor of 1.253.
Hypothesis testing is used to test how the effect of each variable on the dependent variable through the regression coeffi cient. The regression coeffi cient obtained from the tested variables shows the relationship between the dependent variable and the independent variable. Hypothesis testing is done by comparing the probability value with the level of signifi cance. An independent variable can be said to have a signifi cant effect on the dependent variable if the signifi cance level is < 0.05. The results of hypothesis testing obtained are as follows.

Analysis of the Effect of Leverage on the Revaluation of Fixed Assets
The result of this study shows that leverage has no effect on the revaluation of fi xed assets. This result supports the results of the research conducted by Mario and Erly (2015), Resti Yulistia, et al. (2015), Tay (2014), and Seng and Su (2010) that the leverage variable has no infl uence on revaluation of fi xed assets. The high leverage of a company has no effect on the company's decision to carry out fi xed assets revaluation because the creditor is aware of the fi xed asset revaluation policy. The selection of fi xed asset revaluation policy is not a consideration in determining debt agreements.
The selection of fi xed asset revaluation policy is uncertain whether or not it is effective in increasing loan capacity because the lenders still exclude fi xed asset revaluation from the basis used to calculate the debt ratio. The result of this study does not support the results of the research conducted by Andinson (2015), Tunggul and Aria (2015), Tabari and Adi (2014) and Piera (2007) which show that leverage has an effect on the decision to carry out fi xed assets revaluation.

Analysis of the effect of Liquidity on the Revaluation of Fixed Assets
The study shows that the variable of liquidity has no effect on the revaluation of fi xed assets. This result supports the results of the research conducted by Cut Annisa and Musfi ari (2016) and Tay (2014) that liquidity has no effect on the revaluation of fi xed assets. Companies with low liquidity tend not to carry out fi xed assets revaluation because the funds used to carry out the asset revaluation method are still quite high, so that they choose a method other than fi xed assets revaluation to get loans .002 a. Variables entered on step 1 : leverage, liquidity, fi xed assets intensity, and fi rm size Source: Data Processed from creditors without having to incur high costs. In addition, the companies will also think that the costs they will incur for fi xed assets revaluation are not necessarily comparable to the loans they will get from the creditors. The result of this study does not support the results of the research conducted by Andinson (2015) and Tunggul and Aria (2015) that liquidity has an effect on fi xed asset revaluation.

Analysis of the Effect of Fixed Assets Intensity on the Revaluation of Fixed Assets
The result of this study shows that the variable of fi xed assets intensity has no effect on the company's decision to carry out fi xed assets revaluation. This result supports the results of the research conducted by Resty Yulistia, et al (2015), Tabari and adi (2014) and Seng and Su (2010) that fi xed assets intensity has no effect on fi xed asset revaluation. The size of the proportion of fi xed assets is not a consideration of management in carrying out fi xed assets revaluation even though fi xed assets are used in most of the company's operations. This is because the management does not consider too much the size of the proportion of fi xed assets when determining the method of revaluation of fi xed assets and the cost method, but what the management considers is the change in the fair value of fi xed assets.
The company management also thinks that with a large proportion of fi xed assets, the company can still have a large asset value without carrying out fi xed assets revaluation. The result of this study does not support the results of the research conducted by Cut Annisa and Musfi ari (2016), Tunggul and Aria (2015) and Tay (2014) that fi xed assets intensity has an effect on revaluation of fi xed assets.

Analysis of the Effect of Firm Size on the Revaluation of Fixed Assets
The study shows that fi rm size has an effect on the revaluation of fi xed assets. Large companies will tend to report their high profi ts to attract the attention of regulators and other parties who have the power and capacity to make new rules. The revaluation of fi xed assets is an effective way to reduce earnings reporting through increasing depreciation costs as a result of an increase in asset revaluation. The result of this study supports the results of the research conducted by Tunggul and Aria (2015), Tabari and Adi (2014), Tay (2014), and Seng and Su (2010) that fi rm size has an infl uence on the revaluation of fi xed assets. However, the result of this study does not support the results of the research conducted by Cut Annisa and Musfi ari (2016), Mario and Erly (2015), Resty Yulistia, et al (2015), and Piera (2007) that failed to show the effect of fi rm size on fi xed asset revaluation.

CONCLUSION, LIMITATION, AND SUG-GESTION
This study provides evidence that the variables of leverage, liquidity, and fi xed assets intensity have no effect on the company's decision to carry out fi xed assets revaluation, while the variable of fi rm size has an effect on the company's decision to carry out fi xed assets revaluation. Large companies tend to report their high profi ts to attract the attention of regulators and others who have the power and capacity to make new rules. Revaluation of fi xed assets is an effective way to reduce earnings reporting through increasing depreciation costs as a result of an increase in asset revaluation.
The limitations of this study include: 1) the lack of research samples due to the large number of companies that had not published fi nancial statements in 2017; (2) the results of the coeffi cient of determination indicate a small R square value. Nagelkerke value of R square is 0.041 or only 4.1%, which means that the independent variable can provide the information needed by the dependent variable.
As described above, it is recommended that the next researchers add the research samples, such as the company's fi nancial report data in ASEAN countries other than Indonesia only, use other independent variables, such as market to book ratio, operating cash fl ow, ROE level, or company growth factor, and use control variable, such as the state legal system variable for the research that uses a sample of countries registered in ASEAN.