The Effect Of Profitability, Managerial Ownership, Leverage, and Firm Size On Income Smoothing

Abstract

Objective – This research aims to determine the impact of profitability, managerial ownership, leverage, and firm size on income smoothing 

Design/methodology/approach – This research uses quantitative data, the sample of this company is a commodity sector company listed on the Indonesian Stock Exchange in 2018-2023 of 19 companies. The analysis technique used to test the hypothesis is a logistic regression analysis using Eviews 9 software.

Findings – The results of this research show that the profitability variables, leverage and company size, have no effect on income smoothing, while the managerial ownership variable has a positive  significant effect on income smoothing.

Originality/Value – This research discusses income smoothing and other factors such as profitability, managerial ownership, leverage and company size, focusing on companies in the raw goods sector. The difference between this research and previous research lies in the research period, the company sector studied, and the measurements used.