| dc.description.abstract | The important aspect in the financial statements that users will use is the profit of the company. If a company has a high profit, the company is getting a positive response from users of financial statements. And otherwise, if a company has a low income, the company is getting a negative view of the users of financial statements. Profit is very important for a company because it involved reputation, recognition and user’s opinion on the company's financial statements. The purpose of this study was to examine and analyze whether the profitability, financial risk, firm value, dividends, and company size haveinfluence on the practice of income smoothing. The method used in this study is multiple regression with sample non-financial companies listed on the Indonesia Stock Exchange from 2006 until 2011.
Hypothesis test results of this study indicate that the profitability and company size are significant positive effect on income smoothing practices, beside that dividends are significant negative effect on income smoothing practices with Eckel Index method. Financial risk and firm value are not significant on income smoothing practices with Eckel Index method. Income smoothing Discretionary Accrual method shows that company size are significant negative effect on income smoothing practices.Profitability, financial risk, firm value, and dividends are not significant on income smoothing practices with Discretionary Accrual method. | en_US |
