The Effect of Return on Assets, Debt to Equity Ratio and Net Interest Margin on Income Smoothing by Moderating: Gender in the Banking Industry

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(1) Sekolah Tinggi Ilmu Komputer Yos Sudarso
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Abstract

Management can intervence to the process of preparation of financial statements for external parties by leveling, raising or lowering the reported profit. One pattern of earnings management is income smoothing, that is leveling reported profit in order to reduce fluctuations of earnings. The purpose of this study is to evaluate whether the factors of Return on Assets (ROA), Debt to Equity Ratio (DER), as well as Net Interest Margin (NIM) affect income smoothing using gender as moderator variable by observing the proportion of women in boards. The Samples were 26 banks listed on IDX, 2014 - 2018 period, analyzed by using the SPSS multiple linear regression testing and regression models moderation. We found that ROA, NIM, DER, moderated by gender variable significantly affect income smoothing. Partial test also showed that with gender as moderator, ROA and NIM significantly influence income smoothing, while DER has no effect. Keywords: debt to equity ratio (DER), gender, income smoothing, net interest margin (NIM), return on assets (ROA)