IDEAS home Printed from https://ideas.repec.org/a/uii/jaaife/v27y2023i1p73-81id28196.html
   My bibliography  Save this article

The impact of profitability, leverage, managerial ownership, and dividend payout ratio on income smoothing

Author

Listed:
  • Suwaldiman Suwaldiman
  • Rifda Nafiesah Lubis

Abstract

This paper examined the impact of profitability, leverage, management ownership, and dividend payout ratio on income smoothing of companies listed in IDX in the range of 2015-2020 based on Eckel Index. The lower the Eckel Index the higher the intensity of income smoothing and vice versa. The hypothesis proposed were tested by a multiple regression analysis. This research concluded that return on asset, debt to capital ratio, and dividend payout ratio have significant and positive impacts on the Eckel Index. It is interpreted that the higher these variables, the lower the intensity of income smoothing. However, this research revealed that management ownership has a negative and significant impact on the Eckel Index, thus proving that managers ownership will drive them to conduct the income smoothing.

Suggested Citation

  • Suwaldiman Suwaldiman & Rifda Nafiesah Lubis, 2023. "The impact of profitability, leverage, managerial ownership, and dividend payout ratio on income smoothing," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 27(1), pages 73-81.
    • Handle: RePEc:uii:jaaife:v:27:y:2023:i:1:p:73-81:id:28196
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JAAI/article/view/28196/15681
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:jaaife:v:27:y:2023:i:1:p:73-81:id:28196. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JAAI/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.