<![CDATA[ABSTRACTThe objective of this research was to prove the influence of return onassets (ROA) changes, operating profit margin (OPM) changes, and the size ofthe company towards the probability of income smoothing practice. Incomesmoothing practice is a the way used by managers to reduce the profits created tomatch the desired targets both through accounting and through transactions. Inaddition, profits that discuss in a stable position will give confidence to the ownerof the company involved with the aim of increasing the sensitivity of theshareholders and related income, but still within the lower limit.This research was carried out by using 150 manufacture companies listedin Indonesia Stock Exchange during 4 years period from 2014 until 2017. Thehypotheses were tested using binary logistic regression.The first hypothesis was done to prove the positive influence of ROAchanges towards the probability of income smoothing practice. The secondhypothesis was conducted to examine the positive influence of OPM changetowards the probability of income smoothing practice. The last hypothesis wascarried out to test the positive influence of the size of the company towardstheprobability of income smoothing practice. The result of this research indicatedthat 29 out of 150 companies which were used as samples committed incomesmoothing practices. The output of the binary logistic regression showed thatROA changes and OPM changes had positive effects towards the probability ofincome smoothing practice. However, the size of the company did not affect theprobability of income smoothing practice.Keywords : ROA changes, operating profit margin (OPM) changes, the size of thecompany, the probability of income smoothing practice]]>
