Research Paper
Year: 2020 | Month: November | Volume: 7 | Issue: 11 | Pages: 541-546
Analysis of Factors Affecting Earning Management in Banking Companies Listed on BEI
Geby Citra1, Cahyo Pramono2
1,2Management Study Program, Social Science Faculty, Universitas Pembangunan Panca Budi Medan, Indonesia, 20122
Corresponding Author: Cahyo Pramono
ABSTRACT
This research is a causality research that aims to analyze the effect of leverage, firm size, free cash flow and profitability to earning management. The leverage variable is measured using debt to total assets (DTA) and profitability is measured using return on assets (ROA). The type of this research is quantitative research, while the model of this research is multiple linear regression analysis. In this study used secondary data with sampling technique used is purposive sampling. The population in this study are all banking companies listed on the BEI which amounted to 43 companies. Number of companies that meet the criteria to be sampled there are 32 companies and tested data using SPSS version 16.0. It can be seen that the results that leverage, firm size, free cash flow and profitability partially have no effect on earning management. And leverage, firm size, free cash flow and profitability simultaneously affect the earning management.
Keywords: Leverage (DTA), Firm Size, Free Cash Flow, Profitability (ROA), Earning Management.
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