The Affecting Factors Of Earnings Management In Mining Companies Listed On In donesia Stock Exchange

Dini Wahjoe Hapsari, K Kurnia

Abstract

This research purpose is to analyze the effect of leverage, free cash flow, and firm size on earnings management ofmining companies listed on Indonesia Stock Exchange 2010-2014.Earnings management is managerial activity to intervene infinancial statements to generate the desired profit level in income statement. This study uses discretionary accruals as a proxyfor earnings management, and Jones Model was used for calculation of discretionary accruals.The population in this study is all mining companies registeredin Indonesia Stock Exchange period of 2010-2014. Thesamples used are selected usingpurposive sampling method. Datawere analyzed using panel data regression analysis.The results of study showed that leverage, free cash flow, andfirm size have a significant effect on earningsmanagement simultaneously. In partial variable firm size have asignificant effect on earnings management with a positivedirection. While variable leverage and free cash flow have no significant effect on earnings management.

Full Text:

PDF

Refbacks

  • There are currently no refbacks.
max_upload :0