Profitability, Public Ownership, Dividend Policy, and Income Smoothing Practices

Abstract

This study attempts to show how profitability, public ownership, and dividend
policy affect income smoothing practices. The scope of this study is banking
sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the
2019-2022 period. The research sample of 62 observations was the result of
selection from the purposive sampling technique. Multiple linear regression
analysis method were applied to analyze the research data. Based on the results
of the analysis, empirical evidence was obtained that income smoothing
practices were negatively influenced by profitability and income smoothing
practices were positively influenced by public ownership. Meanwhile, dividend
policy does not show a significant influence on income smoothing practices.