DETERMINE THE FINANCIAL PERFORMANCE, COMPANY SIZE, AND DIVIDEND PAYOUT RATIO ON INCOME SMOOTHING OF MANUFACTURING COMPANIES LISTED ON INDONESIA STOCK EXCHANGE

Abstract

The objective of this research is to examine the impact of profitability, financial risk, company size, and Dividend Payout Ratio (DPR) on the practice of income smoothing in manufacturing companies listed on the Indonesia Stock Exchange (IDX). Purposive sampling was used to collect the sample for this study, which consisted of 25 manufacturing enterprises listed in IDX from 2017 to 2019. According to the findings, profitability has a positive impact on income smoothing practices. However, income smoothing practices are unaffected by leverage, company size, and DPR.

Keywords

• income smoothing
• profitability
• leverage
• company size
• dividend payout ratio