FAKTOR-FAKTOR YANG MEMPENGARUHI PRAKTIK PERATAAN LABA

Abstract

This research studies factors influencing the practices of income
smoothing in manufacturing and financial firms listed on the
Indonesian Stock Exchange during 2002-2006. Eckel Index is used
to measure the income smoothing, while companies sizes are
measured by total assets. Profitability is measured by ratio of before
tax net profit to total assets, financial leverage is measured by debt
to total assets ratio, and dividend pay out ratio by comparing
dividend per share with earnings per share. Research population
includes all manufacturing and financial firms listed on the
Indonesian Stock Exchange from 2002 to 2006. Sample consists of
84 firms. Data are analyzed using multiple linear regressions with
results that company size, profitability, and dividend pay out ratio
have positive and significant impact on income smoothing practices.
Financial leverage is the only factor that does not affect income
smoothing practices.