PENGARUH FREE CASH FLOW, PROFITABILITAS DAN LEVERAGE TERHADAP MANAJEMEN LABA

Abstract

This research aimed to find out empiral evidence and analyze the effect of free cash flow, profitability, and leverage on the profit management with good corporate governance as the moderating variabel (empirical research at a manufacturing company listed on Indonesia Stock Exchange from 2017 to 2018. The sample collection method used purposive sampling used a purposive sampling method it obtained 54 companies sample as the research object. On the other hand, the analysis technique of this research used multiple loncat regressions analysis. Moreover, the independent variabel of this research used free cash flow, profitability (ROA), and leverage (DAR), besides profit management as the dependent variabel, and good corporate gorvenance (the independent commissioner and audit committee) as the moderating variabel. The result of this research found that free cash flow, profitability, and leverage partially had negative and significant effects on profit management. Furthermore, the result of MRA (Moderated Regression Analyze) rest concluded that good corporate governance (independent commissionaire) was able to moderate the correlation between free cash flow, profitability, and leverage on profit management. As well as, the audit committee was able to moderate the correlation of free cash flow on profit management. Moreover, the audit committee was incapable to moderate the correlation between profitability and leverage on profit management.
Keyword: free cash flow, return on assets, debt to asset ration, good corporate governance