The Effect Of Return On Asset, Net Profit Margin And Financial Leverage On Income Smoothing In Banking Companies Listed On The Indonesian Stock Exchange
DOI:
https://doi.org/10.29103/icospolhum.v3i.255Keywords:
Return on Asset, Net Profit Margin, Financial Leverage, and Income Smoothing.Abstract
This study aims to examine the effect of return on asset, net profit margin and financial leverage on income smoothing study in Banking Companies listed in the IDX for the 2019-2021 period. The population in this study is all mining companies listed on the Indonesian Stock Exchage, which is as many as 43 companies.The sample in this study uses a saturated sample that uses all members of the population as many as 43 companies. Data obtained from the publication of the Indonesian Stock Exchange and the official website of each company. This study used 43 samples with 3 years of research so that a total of 129 observations with logistic regression were processed using E-views 10 software. The results of this study using the partial test (t-test) found that the variables return on assets has a positive effect on income smoothing, net profit margin do not have a significant effect on income smoothing and financial leverage do not have a significant effect on income smoothing.
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