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

M.Rafly  Himawan; David  Effendi

M.Rafly Himawan Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya
David Effendi Sekolah Tinggi Ilmu Ekonomi Indonesia (STIESIA) Surabaya

Keywords: financial performance, profit growth, free cash flow, and profit quality

Abstract

This research aims to examine and analyze the effect of (1) solvability on profit quality, (2) profitability on profit quality, (3) profit growth on profit quality, and (4) free cash flow on profit quality. The research applies quantitatively. The population consists of all Food and Beverage companies listed on the Indonesia Stock Exchange (IDX) during 2021-2023. Furthermore, the data collection technique used purposive sampling with certain criteria. In line with that, there were 47 companies taken as a sample with 141 data samples in total. Moreover, the data analysis technique used multiple linear regression with SPSS 26 versions. The result shows that (1) solvability with a proxy of Debt to Equity Ratio has a positive effect on profit quality, (2) profitability with a proxy of Net Profit Margin has a positive effect on profit quality, (3) profit growth does not affect profit quality, and (4) free cash flow has a negative effect on profit quality.