ANTESEDEN DARI PRAKTIK INCOME SMOOTHING (Studi Kasus Pada Perusahaan Yang Terdaftar di Jakarta Islamic Index (JII) Tahun 2015-2017

ABSTRACT
The purpose of this research was to analyze the influence of profitability,
leverage, firm size and auditor reputation to practice of income smoothing. This
research used purposive sampling in determining sample selection. Samples
consist of 17 comapanies from 30 companies listed in the Jakarta Islamic Index
(JII) with 3 years of observation, is from 2015 to 2017 so that obtained 51
reseacrh samples. Agency theory is the basic theory used to explain the
relationship between variables. Income smoothing was measured using the eckel
index (1981). The statistical method used to test the hypothesis was logistic
regression analysis. The result of this study found that profitability proxied by
return on assets had an negative effect on the practice of income smoothing.
Leverage proxied by debt to equity ratio had an positive effect on the income
smoothing practice, while firm size and auditor reputation had no effect on the
practice of income smoothing.