The Effect of NPM, DPR, DER and Existed Size of the CompanyTowards the Income Smoothingin Manufacturing Companies

The Effect of NPM, DPR, DER and Existed Size of the CompanyTowards the Income Smoothingin Manufacturing Companies

Debt to Equity Ratio, The Ratio of Dividend Payout, Income Smoothing, Net Profit Margin,Company Size

Income smoothing is a natural thing to do by management because of fluctuations in income which are considered abnormal and sometimes not as in line as the stated plan of the company set up at the beginning.Financial reports published on the Indonesian Stock Exchange are usually always analysedby investors and potential investors as a basis for decision making, one way for investors to detect that the reports presented indicate high income smoothing values which can causemistakes in decision making and harm.One way to detect the smoothing condition of the existed income is based on the index of Eckel standards of regulations.This study uses a population of 72, for 4 years in the manufacturing sector to companies used the index of Eckel standards of regulations by means of measuring the condition of smoothing of the income.The results showed that firm size had an effect on income smoothing while DER, NPM and DPR had no effect on income smoothing.

Hustna Dara Sarra1, Mikrad2

https://dinastipub.org/DIJEFA/article/view/1082/731

Muhammadiyah University of Tangerang

15 Desember2021

Hustna Dara Sarra1

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