EFFECTS OF PROFITABILITY, FINANCIAL LEVERAGE, AND DIVIDEND POLICY ON INCOME SMOOTHING PRACTICE WITH FIRM SIZE AS A MODERATOR AMONG LISTED MANUFACTURING COMPANIES IN INDONESIA

HEBERT KOSASIH (2021) EFFECTS OF PROFITABILITY, FINANCIAL LEVERAGE, AND DIVIDEND POLICY ON INCOME SMOOTHING PRACTICE WITH FIRM SIZE AS A MODERATOR AMONG LISTED MANUFACTURING COMPANIES IN INDONESIA , TESIS, UNIVERSITAS PRIMA INDONESIA

ABSTRAK

This study aims to determine income smoothing practice in manufacturing companies listed on Indonesia Stock Exchange (IDX). In addition, this study also looks at whether there is a difference between companies that do not perform income smoothing and companies that do income smoothing. Variables tested include profitability, financial leverage and dividend policy with firm size as the moderating variable. This study involves manufacturing companies listed on Indonesia Stock Exchange during the 2017-2019 period. Sample selection is done by using purposive sampling method. This research utilizes external data which is obtained from the website www.idx.co.id. The data analysis process is carried out by calculating PLS Algorithm using smartPLS and doing the hypothesis test. The results conclude that profitability has significant effect on income smoothing, financial leverage has no effect on income smoothing, dividend policy has no effect on income smoothing, and firm size is able to moderate profitability effect on income smoothing. However, firm size is unable to moderate the effect of financial leverage and dividend policy on income smoothing.

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