Pengaruh Profitabilitas Dan Financial Leverage Terhadap Praktik Perataan Penghasilan Pada Bank-bank Di Indonesia

Income smoothing practices often associated with management incentives for putting their interests above the interests of company owners. The aim of this study is to examine the effect of profitability and financial leverage to the income smoothing on banks in Indonesia. The data used in this study is secondary data sourced from the Direktori Perbankan Indonesia, which is published by the Direktorat Perizinan Dan Informasi Perbankan Bank Indonesia. Purposive sampling method is used for this study by specifying certain criteria. The results showed that the profitability give negative effect on income smoothing. Financial Leverage had no effect on income smoothing. The size of company that is used as a control variable in this study did not give effect on income smoothing either