PENGARUH UKURAN PERUSAHAAN, KEPEMILIKAN INSTITUSI, NET PROFIT MARGIN DAN DEBT TO EQUITY RATIO TERHADAP PRAKTIK PERATAAN LABA

Abstract

The purpose of this study was to obtain empirical evidence about the effect of firm size, institutional ownership, the net profit margin and debt to equity ratio of the income smoothing practices. One form of earnings manipulation is performed income smoothing practice managers to reduce fluctuations in earnings of the company, so the company's performance look better and be able to attract investors to invest. Income smoothing is used to normalize earnings in order to achieve the desired level of profit. The data in this study was collected from the company 's financial reports which is published on the website IDX ( Indonesia Stock Exchange ) 2011-2013. The sample used by 20 companies using purposive sampling technique chosen with certain criteria. Based on the results of logistic regression with a = 5%, showing that the firm size variable effect on income smoothing practices while institutional ownership , the net profit margin and debt to equity ratio does not affect the income smoothing practices.Key words : income smoothing practices, company size, institutional ownership, net profit margin, debt to equity ratio, logistic regression