PENGARUH PROFITABILITAS (ROA), UKURAN PERUSAHAAN, FINANCIAL LEVERAGE DAN DIVIDEND PAYOUT RATIO TERHADAP PRAKTIK PERATAAN LABA (Studi Kasus Pada Perusahaan-Perusahaan Go Public yang Terdaftar di Bursa Efek Indonesia Tahun 2004-2008)

Abstract

The aimed of this study was to examine the influence of company’s characterictics toward income smoothing practice among listed companies at Indonesian Stock Exchange. Income smoothing practice used by the management to diminish the variability of a stream of reported income numbers related to some perceived target stream by manipulating artificial (accounting) and real (transactional) variables (Koch, 1981). The factors being examined were profitability, size of the company, financial leverage, dividend payout ratio. Index Eckel is used to determine the income smoothing practice. The object of income smoothing in this study is the net profit of the company. The study was using 38 companies listed in Indonesian Stock Exchange, with a period between 2004-2008. The hypothesis was tested using binary logistic regression. The first hypothesis was used to examine the influence of profitability to income smoothing. The second hypothesis was used to examine the influence of size of the company to income smoothing. The third hypothesis was used to examine the influence of financial leverage to income smoothing. The fourth hypothesis was used to examine the influence of dividend payout ratios to income smoothing. The result of this study showed that some of the listed companies at Indonesian Stock Exchange were committed to income smoothing practice. Binary logistic regression showed that size of the company and financial leverage did not have significant influence to income smoothing. Only profitability and dividend payout ratios have significant influence to income smoothing. Keywords : Profitability, size of the company, financial leverage, dividend payout ratio ratios, income smoothing.