The Effect of Profitability, Financial Leverage, and Winner/Loser Stock to Income Smoothing

Authors

  • Nur Dihanti Yusman Universitas Ekasakti
  • Rina Asmeri Universitas Ekasakti
  • Neti Gusraini Universitas Ekasakti
  • Ikhvan Novri Andra Universitas Ekasakti

DOI:

https://doi.org/10.38035/dijefa.v2i4.1396

Keywords:

Profitability, Financial Leverage, Winner/Loser Stock, Income Smoothing

Abstract

This study aims to find out: (1) the effect of profitability on the occurrence of income smoothing practices, (2) the effect of financial leverage on the occurrence of income smoothing practices, (3) the effect of winner/loser stock on the occurrence of income smoothing practices, and (4) the effect of profitability , financial leverage, winner/loser stock on the occurrence of income smoothing practices simultaneously. This research was conducted using Statistical Analysis method. The statistical analysis method used here is logistic regression analysis. Where in the statistical regression analysis test will be tested in it: (1) testing the feasibility of the regression model, (2) assessing the entire model, (3) Coefficient of Determination, (4) Multicollinearity Testing, (5) Classification Matrix, and (6) Model Formed Regression. The results obtained from this study: (1) profitability has no effect on the occurrence of income smoothing practices, (2) financial leverage does not affect the occurrence of income smoothing practices, (3) winner/loser stock does not affect the occurrence of income smoothing practices, and (4 ) profitability, financial leverage, winner/loser stock have no effect on the occurrence of income smoothing practices simultaneously.

References

Andhika Fajar Iskandar, & Ketut Alit Suardana, 2016, The Influence of Company Size, Return On Assets, and Winner/Loser Stock on Profit Smoothing Practices, E-Journal of Accounting, Udayana University, 14, 805-834. Hery, 2014. Accounting and Management Control , KENCANA, Jakarta.

I Komang Gede Ginantra & I Nyoman Wijana Asmara Putra, 2015, Effect of Profitability, Leverage, Company Size, Public Ownership, Dividend Payout Ratio and Net Profit Margin on Smoothing Income, E-Journal of Accounting Udayana University, 10.2, 602-617.

Ivan Hardiamsyah, 2017. The Effect of Profitability, Financial Leverage, Winner/Loser Stock and Growth on Income Smoothing (Study on Manufacturing Companies Listed on the IDX Period 2013-2015), Thesis, Faculty of Economics & Business: University of Muhammadiyah Yogyakarta.

Jogiyanto, 2013. Portfolio Theory and Investment Analysis. Seventh Edition, Third Printing, BPFE, Yogyakarta.

Lina Agustiana, 2017, The Influence of Company Size, Return On Assets, Net Profit Margin, and Winner/Loser Stock on Income Smoothing Practices (A Study on Financial Services Company Sub-Sector Banks listed on the Indonesia Stock Exchange Period 2011- 2015), Thesis, Faculty of Economics and Business: Pasundan University.

Ludmila Sofia Pratnatika, 2017, Effect of Company Size, Return On Assets, Operating Leverage, Liquidity, Winner/Loser Stock on Profit Smoothing Practices (Empirical Study of Manufacturing Companies Listed on the Stock Exchange for the Period 2012-2016), Faculty of Economics and Business, Accounting Study Program , University of Muhammadiyah Yogyakarta.

Mamduh M. Hanafi, 2015. Financial Management, Eighth Edition, BPFE-Yogyakarta, Yogyakarta.

Musthafa, 2017. Financial Management, Edition 1, Andi, Yogyakarta.

Riris Sitorus, Rasinih, & Andi Anggi, 2016, Effect of Capital Turnover and Leverage on Income Smoothing with Audit Quality as Moderating (Study on Manufacturing Companies listed on the Indonesia Stock Exchange in 2011 - 2014), Journal of Managerial Accounting, Vol. 1, No. 1, 87-102.

Downloads

Published

2021-10-25

Issue

Vol. 2 No. 4 (2021): Dinasti International Journal of Economics, Finance & Accounting (September - October 2021)

Section

Articles

License

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. The copyright on each article belongs to the author(s).
  2. The author acknowledges that the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
  3. Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Economics, Finance & Accounting (DIJEFA).