Faktor-Faktor Yang Mempengaruhi Real Earning Management

Abstract

The purpose of this empirical research is to examine the influence leverage, profitability, dan free cash flow toward real earning management. This research uses 102 sample company of consumer goods industry listed on the Indonesia Stock Exchange in the year of 2017 until 2019. Sample was selected by using purposive sampling method. Data processing techniques in this research using program Eviews version 11. The results of this study indicate that leverage and free cash flow have a negative and not significant effect on real earning management, while profitability has a positive and significant effect on real earning management. The implication of this study is investors and creditors need to beware before giving funds to companies.