This study aimed to analyze: (1)negative impact on managerial ownership of the income smoothing; (2) negative impact on audit quality of the income smoothing; (3 )the positive impact on leverage of the income smoothing; (4) negative impact on company size of the income smoothing. This study uses a sample of 85 companies listed on the Indonesian Stock Exchange from 2013 to 2015. The forth hypothesis in this study were analysed using multiple linear regression. The results of this study indicated that: (1) managerial ownership does not significantly impact on the income smoothing; (2) audit quality significantly negative effect of the income smoothing; (3) leverage significantly negative effect on the income smoothing; (4) company size significantly positive impact on the income smoothing.