This study aims to examine the effect of profitability, firm value, firm size,
financial risk, and institutional ownership toward income smoothing practices.
The type of research used in this study is quantitative research. Independent
variables used in this research are profitability, firm value, firm size, financial
risk, and institutional ownership, while the dependent variable is the practice of
income smoothing. The object of this study is a banking company listed on the
Indonesia Stock Exchange period 2012-2016. The sampling technique used in this
research is purposive sampling, while the data analysis method used in this
research is descriptive statistics, logistic regresion analysis used includes
assessing the feasibility of the regression model, assessing the whole model,
assessing nagelkarke r square, parameter estimation and interpretation. The
result showed that profitability has a negative effect on the practice of income
smoothing, firm value does not affect the practice of income smoothing, financial
risk negatively affect the practice of income smoothing, institusional ownership
negatively affect the practice of income smoothing.