ANALISIS PENGARUH FINANCIAL RISK, DIVIDEND PAYOUT RATIO, FIRM VALUE, COMPANY SIZE, DAN PROFITABILITAS TERHADAP INCOME SMOOTHING ACTION

Abstract

This study aims to examine the effect of financial risk, dividend payout ratio, firm value, company size and profitability on income smoothing action. The measurement of income smoothing action in this study uses the Eckel Index. This research was conducted at coal mining sub sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period. The number of observations were 17 research samples obtained using purposive sampling techniques. The analysis technique used in this study is logistic regression analysis. The analysis shows that financial risk has a significant effect on the practice of income smoothing. This shows that the higher the financial risk, the higher the practice of income smoothing. Dividend payout ratio, firm value, company size and profitability have no effect on income smoothing practices. This means that the greater and smaller dividend payou ratio, firm value, company size and profitability, there is no effect of income smoothing action.