THE EFFECT OF COMPANY SIZE, PROFITABILITY AND FINANCIAL LEVERAGE ON INCOME SMOOTHING (Empirical Study: At Manufacturing Companies Listed on BEI Period 2014-2016)

ABSTRACT This study was conducted to examine the effect of firm size, profitability, and financial leverage on income smoothing. The population in this study were 146 companies listed on the Indonesian Stock Exchange (BEI) in the period 2014-2016 were selected using purposive sampling method. Data obtained from the company's financial report published on the Indonesia Stock Exchange (BEI). Samples obtained a total of 63 companies. The data in this research is secondary data. The analysis technique used is multiple linear regression at a significance level of 5%. This study shows that the income smoothing significantly influenced by firm size, profitability, and financial leverage at the level of 10.3%, where significant variables that affect the profitability and financial leverage are at levels of 0.1% and 2.2% respectively. However, the variable size of the company does not significantly influence the income smoothing, because the significance level was above 5%. Key Words: Company Size, Profitability, Financial Leverage, Income Smoothing