ANALYSIS OF FACTORS AFFECTING THE ALIGNMENT OF INCOME (CASE STUDY ON AUTOMOTIVE COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (IDX) PERIOD 2008-2013

Abstract

One of the management measures on the profits that can be done is an act of income smoothing (income smoothing). This leads to the income smoothing disclosure of information on profits be misleading, so will result in errors in decision making by parties with an interest in the company, especially external parties.
The purpose of this study was to analyze the effect of firm size, profitability, dividend payout ratio, net profit margin, leverage, auditor reputation and institutional ownership on income smoothing on automotive companies listed on the Stock Exchange the period 2008-2013.
This study uses firm size, profitability, dividend payout ratio, net profit margin, leverage, auditor reputation and institutional ownership as independent variables and smoothing income as the dependent variable. The sampling technique was by purposive sampling. The samples are automotive companies listed on the Stock Exchange during the period 2008-2013 in succession speak. The analysis method used is quantitative analysis, including descriptive statistical analysis, logistic regression analysis, and goodness of fit.
Based on test results, profitability, dividend payout ratio, net profit margin and leverage a negative effect on income smoothing. Firm's size, reputation and institutional ownership has no effect on income smoothing. Based on the test results showed that showed that the regression model can be used to predict the income smoothing. While variations of income smoothing able to be explained by the independent variable by 37.7%.
Key words: company size, profitability, dividend payout ratio, net profit margin, leverage, auditor reputation, institutional ownership, income smoothing.