PENGARUH LEVERAGE, PROFITABILITAS, FINANCIAL DISTRESS DAN FREE CASH FLOW TERHADAP EARNINGS MANAGEMENT PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI

Atikah Ramadhani; Diana Dwi Astuti; Wiwik Fitria Ningsih

doi:10.31967/riemba.v2i1.1052

Atikah Ramadhani Institut Teknologi dan Sains Mandala
Diana Dwi Astuti Institut Teknologi dan Sains Mandala
Wiwik Fitria Ningsih Institut Teknologi dan Sains Mandala

DOI: https://doi.org/10.31967/riemba.v2i1.1052

Keywords: Earnings Management, Return On Asset, Debt to Asset Ratio, Financial Distress

Abstract

Earnings Management is an action that can be taken by managers in reporting profits as expected for the benefit of themselves and the company. Companies listed on the Indonesia Stock Exchange with the highest profit value in 2022 were achieved by the banking sector, mainly conventional banking. This study aims to determine the effect of leverage, profitability, financial distress and free cash flow on earnings management in conventional banking companies listed on the Indonesia Stock Exchange. The research was conducted using secondary data from 29 banking sector companies for the 2018-2022 period. The technical analysis used is multiple linear regression analysis using SPSS software. The results showed that high and low profits can influence managers to carry out profit management actions. The four variables, namely leverage, profitability, financial distress and free cash flow, simultaneously affect earnings management in banking companies listed on the Indonesia Stock Exchange. Based on testing, the coefficient of determination of the contribution of the independent variable to the dependent variable has a percentage of 5.6%, while the remaining percentage is influenced by other variables outside the study.