PENGARUH KINERJA KEUANGAN, PERTUMBUHAN LABA, DAN FREE CASH FLOW TERHADAP KUALITAS LABA

Abstract

This research aimed to examine the effect of financial performance, profit growth, and free cash flow on the profit quality through financial statement which had been published by property and real estate companies; which were listed on IndonesiaStock Exchange. While, the population was property and real estate companies which were listed on Indonesia Stock Exchange 2015-2017. Moreover, the data collection technique used purposive sampling. In line with, there were 24 companies as sample. Furthermore, the data analysis technique used multiple linear regression. The research result concluded Debt to Equity Ratio, Total Assets Turnover, Sales Growth, and Profit Growth had insignificant effect on the profit quality. It meant, the higher the variables, the higher the indication of management tendency in manipulating on the profit number. As consequence, it would affect the profit quality. On the other hand, Net Profit Margin and Free Cash Flow had positive effect on the profit quality. In other words, the variable determined the firm value which motivated the management to manipulate its profit which affect the profit quality. Keywords: Financial Performance, Profit Growth, Free Cash Flow, Profit Quality