Pengaruh Return on Asset, Debt to Equity Ratio dan Tingkat Inflasi Terhadap Praktik Perataan Laba pada Perusahaan LQ45 yang Terdaftar pada Bursa Efek Indonesia (BEI) Periode 2013-2016

Abstract

Earnings information in the income statement is one indicator of the company's management performance. This makes the attention of investors and prospective investors will be focused on the company's profits, without regard to the process of forming the earnings information. This encourages managers to practice income smoothing. This study aims to analyze the effect of return on asset, debt to equity ratio, and the rate of inflation toward the practice of income smoothing. This study used purposive sampling in determining sample selection. A total of 24 companies from 45 companies listed in LQ 45 with 4 years of observation, which is 2013 to 2016, obtained 96 research samples. Income smoothing is measured using the Eckel index. The statistical method used to test the hypothesis is multiple regression analysis. The results of this research found that the return on assets, debt to equity ratio, and inflation rate affection income smoothing in LQ 45 companies listed in Indonesia Stock Exchange (IDX) period 2013-2016.