PENGARUH PERUBAHAN RETURN ON ASSETS, PERUBAHAN OPERATING PROFIT MARGIN, DAN UKURAN PERUSAHAAN TERHADAP KEMUNGKINAN PRAKTIK PERATAAN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

ABSTRACT
The objective of this research was to prove the influence of return on
assets (ROA) changes, operating profit margin (OPM) changes, and the size of
the company towards the probability of income smoothing practice. Income
smoothing practice is a the way used by managers to reduce the profits created to
match the desired targets both through accounting and through transactions. In
addition, profits that discuss in a stable position will give confidence to the owner
of the company involved with the aim of increasing the sensitivity of the
shareholders and related income, but still within the lower limit.
This research was carried out by using 150 manufacture companies listed
in Indonesia Stock Exchange during 4 years period from 2014 until 2017. The
hypotheses were tested using binary logistic regression.
The first hypothesis was done to prove the positive influence of ROA
changes towards the probability of income smoothing practice. The second
hypothesis was conducted to examine the positive influence of OPM change
towards the probability of income smoothing practice. The last hypothesis was
carried out to test the positive influence of the size of the company towards
theprobability of income smoothing practice. The result of this research indicated
that 29 out of 150 companies which were used as samples committed income
smoothing practices. The output of the binary logistic regression showed that
ROA changes and OPM changes had positive effects towards the probability of
income smoothing practice. However, the size of the company did not affect the
probability of income smoothing practice.
Keywords : ROA changes, operating profit margin (OPM) changes, the size of the
company, the probability of income smoothing practice