| dc.description.abstract | Income Smoothing is a method used to reduce fluctuations in earnings management are reported to match the desired target both artificial (via the method of accounting) and in real terms (transactions). Income smoothing action regarded as an act commonly performed by management to achieve certain purposes. However, this practice has been criticized by many people because it can lead to disclosure in the financial statements to be inadequate. The next result, the financial statements no longer reflect the true state of things in the company should have known by the users of financial statements. This research is to examine the factors that affect the amount of income smoothing practices of the company, net profit margin, operating profit margin, return on assets, financial leverage. The separation between companies that perform income smoothing and not perform income smoothing by using tIndex Eckel against operating profit for manufacturing companies listed on the Indonesia Stock Exchange. Sample research totaling 55 companies with a total of 275 sub-sample of financial statements. Observations made during the five years, 2007, 2008, 2009, 2010, 2011. The results of logistic regression analysis either simultaneously or separately against five independent variables thought to affect the practice of income smoothing turned out to company size and return on assets that proved influential. Thus it can be concluded from this research is that the operating profit margin, net profit margin and financial leverage has no effect on the practice of income smoothing, only the amount of the company and the return on assets that can influence companies to perform the action. | en_US |
