ANALISIS PENGARUH GOOD CORPORATE GOVERNANCE, FREE CASH FLOW, DAN LEVERAGE TERHADAP MANAJEMEN LABA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI
Abstract
This research aims to examine the influence of corporate governance, free
cash flow, and leverage on earnings management. Good corporate governance is
measured by size of audit committee, size of board of directors, board of independent
commissioner proportion, institutional ownership proportion, and managerial
ownership proportion. Discretionary accrual is used as a proxy for earnings
management. The sample size used in this research is 71 manufacturing companies
listed in Indonesia Stock Exchange, selected by purposive sampling during the
research period 2009 - 2013. Data is analyzed using multiple regression.
The results show that all of corporate governance components (size of audit
committee, size of board of directors, board of independent commissioner proportion,
institutional ownership proportion, and managerial ownership proportion) and
leverage have no significant influence, while free cash flow has negative and
significant influence to earnings management. This result indicates that high free cash
flow will reduce earnings management practice.