PENGARUH PROFITABILITAS, LEVERAGE, DAN KEPEMILIKAN INSTITUSIONAL TERHADAP INCOME SMOOTHING: STUDI EMPIRIS PADA PERUSAHAAN PENERBANGAN TERBAIK ASIA

Abstract

Airlines company particularly Asia’s airlines has dealing hard times
especially when global crisis in 2008, that impacts towards aviation. Companies
would do anything to maintain their existence. One of them is to
perform income smoothing practices. An evidence found that one of the top
airlines companies according to SKYTRAX has been performing income
smoothing practices in the year of 2018, that was PT Garuda Indonesia.
This indicating that others top airlines companies as well potentially performing
income smoothing to maintain companies wholeness and even
achieving to be top Asia’s airlines companies. This research aims to determine
factors that influence the income smoothing practice in Asia’s top
airlines companies. The variable used in this research are profitability, leverage,
and institutional ownership. This research used quantitative approach
with the use of multiple linear regression analysis technique. This research
used 2008-2018 annual report period observed from eleven Asia’s airlines
companies. The sampling method used in this research is purposive sampling
with 121 data. The results show that profitability, leverage, and institutional
ownership have a negative effect on income smoothing.