THE EFFECT OF PROFITABILITY, FIRM SIZE, LEVERAGE AND FIRM VALUE ON INCOME SMOOTHING

ABSTRACT : The purpose of this study was to obtain empirical evidence of the influence of profitability, firm size, leverage and firm value on income smoothing. The number of research samples was 21 companies for five years with a total of 126 observations. The sample collection method uses a purposive sampling technique. The data analysis technique used in this study is logistic regression analysis. Based on the results of the analysis it was found that profitability, firm size, leverage, and firm value have a positive effect on income-smoothing practices. This study provides additional information about the effect of profitability, firm size, leverage, and firm value on income smoothing practices on the IDX, especially the LQ45 index.

KEYWORDS: income smoothing, profitability, firm size, leverage, firm value.