Analysis the Effect of Financial Distress, Leverage and Free Cash Flow on Earnings Management

2021 ◽  
Vol 6 (3) ◽  
pp. 111-119
Author(s):  
Rifka Aulia Inayah ◽  
Amiruddin Amiruddin ◽  
Grace T. Pontoh
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Financial Distress ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Jel Classification ◽  
Free Cash Flow ◽  
Company Value

Objective - This study aims to determine and analyze the effect of financial distress, leverage, free cash flow on earnings management. Methodology/Technique – The object of this research is all companies listed on the Indonesia Stock Exchange with an observation period of 2019. The sample determination uses the purposive sampling method and a total sample of 124 companies is obtained. The analysis technique used is multiple linear regression analysis. Findings - The results show that financial distress has no significant effect on earnings management. Leverage and free cash flow have a negative and significant effect on earnings management. Novelty - This research contributes to signalling theory, which is used by company managers who have better information about their company will be encouraged to convey this information to potential investors where this is intended so that companies can increase company value by sending signals through financial statements of companies listed on the IDX. Type of Paper: Empirical. JEL Classification: G32, M21, M41, M42. Keywords: Financial Distress; Leverage; Free Cash Flow and earnings Management

scholarly journals PENGARUH FREE CASH FLOW, FINANCIAL DISTRESS, DAN INVESTMENT OPPORTUNITY SET TERHADAP MANAJEMEN LABA

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Sally Irawan ◽  
Prima Apriwenni
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Financial Distress ◽  
Stock Exchange ◽  
Total Sample ◽  
Free Cash Flow ◽  
Investment Opportunity ◽  
Purposive Sampling ◽  
Investment Opportunity Set ◽  
Positive Effect

<p><strong><em>ABSTRACT :  </em></strong><em>Stakeholders pay attention to the earnings report, thus encouraging company managers to plan strategies to produce reports expected by stakeholders. Earnings management is one way that can be done. Managers can intervene the earnings management by increasing or decreasing profit in order to achieve a certain level of profit which benefits himself or the company. This study aims to determine the influence of free cash flow, financial distress, and investment opportunity set on earnings management. </em><em>The research sample consisted of 11 infrastructure, utility, and transportation companies listed on the Indonesia Stock Exchange in 2014-2018 with the total sample of 55 data. This study used a purposive sampling method and was tested with SPSS 22.0 Software. The results show that the data have met the pooling test, classical assumptions and established criteria. The results of the F test show that the earnings management variable is affected simultaneously by free cash flow, financial distress, and investment opportunity set variables. The t test results show that the free cash flow and investment opportunity set have a significant positive effect on earnings management, whereas financial distress does not. In sum, there is enough evidence that free cash flow and investment opportunity set positively affect earnings management, but financial distress does not have enough evidence to influence earnings management.</em></p><p><strong><em>Keywords: </em></strong><em> Earnings Management, Free Cash Flow, Investment Opportunity Set, Financial Distress.</em></p><p><em> </em></p><p><strong>ABSTRAK:</strong> Laporan laba menjadi perhatian para <em>stakeholders</em> sehingga mendorong manajer perusahaan melakukan perencanaan strategi untuk menghasilkan laporan yang diharapkan <em>stakeholder</em>. Manajemen laba adalah salah satu cara yang dapat dilakukan. Intervensi manajer untuk melakukan manajemen laba dengan cara menaikkan atau menurunkan laba guna mencapai tingkat laba tertentu untuk menguntungkan dirinya sendiri atau perusahaan. Penelitian ini bertujuan untuk mengetahui pengaruh <em>free cash flow, financial distress, </em>dan <em>investment opportunity set </em>terhadap manajemen laba. Sampel penelitian ini adalah perusahaan infrastruktur, utilitas, dan transportasi yang terdaftar di Bursa Efek Indonesia periode 2014-2018. Total sampel yang digunakan adalah 11 perusahaan dengan data observasi yang diperoleh sebanyak 55. Teknik pengambilan sampel yang digunakan adalah <em>non-probability sampling</em> dengan menggunakan metode <em>purposive sampling</em> dan pengujian yang dilakukan dengan bantuan <em>software</em> SPSS 22.0. Hasil penelitian dari data yang digunakan,  untuk uji pooling dan asumsi klasik telah lulus uji dan sudah memenuhi kriteria yang ditetapkan. Hasil uji F menunjukkan bahwa variable manajemen laba dipengaruhi secara simultan oleh variable <em>free cash flow, financial distress, </em>dan <em>investment opportunity set. </em>Dari hasil uji t memperlihatkan hasil bahwa <em>free cash flow </em>dan<em> investment opportunity set </em>mempunyai nilai signifikan positif terhadap manajemen laba, tapi untuk <em>financial distress </em>tidak mempunyai nilai signifikan terhadap manajemen laba. Kesimpulan dari penelitian ini adalah<em> free cash flow </em>dan <em>investment opportunity set </em>berpengaruh positif terhadap manajemen laba, sedangkan <em>financial distress </em>tidak berpengaruh terhadap manajemen laba.</p><p><strong>Kata Kunci:</strong> Manajemen Laba,<em> Free Cash Flow,  Investment Opportunity Set, Financial Distress</em></p><p> </p>

scholarly journals Pengaruh Keputusan Pendanaan, Keputusan Investasi, Kebijakan Dividen, Dan Arus Kas Bebas Terhadap Nilai Perusahaan

2020 ◽  
Vol 8 (3) ◽  
pp. 263-276
Author(s):  
Muhammad Fadly Bahrun ◽  
Tifah Tifah ◽  
Amrie Firmansyah
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Dividend Policies ◽  
Negative Effect

This study examines the effect of funding decisions, investment decisions, dividend policies, and free cash flow on firm value. The samples used in this study are consumer goods industry companies listed on the Indonesia Stock Exchange (IDX) during 2016-2019. Based on purposive sampling, the selected sample is 34 companies, so that the total sample is 136 observations. Hypothesis testing is carried out using multiple linear regression analysis of panel data. The test results show that funding decisions positively affect firm value, while investment decisions do not affect firm value. This study also shows that dividend policy and free cash flow have a negative effect on firm value.

scholarly journals Pengaruh Profitabilitas, Ukuran Perusahaan, dab Arus Kas Bebas Terhadap Kebijakan Dividen

2020 ◽  
Vol 30 (1) ◽  
pp. 238
Author(s):  
Kadek Indri Pradnyavita ◽  
I Ketut Suryanawa
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Company Size ◽  
Manufacturing Companies

The Effect of Profitability, Company Size, and Free Cash Flow to Dividebd Policy   ABSTRACT Dividend policy is a policy related to dividend payments by the company. The company is faced with the decision to distribute dividends to shareholders or withhold earnings for reinvestment activities. The purpose of this study was to determine the effect of profitability, company size and free cash flow on dividend policy. This study took a sample of manufacturing companies listed on the Indonesia Stock Exchange in the period 2016-2018. The sampling technique used was purposive sampling, so as many as 13 companies were obtained. The total sample taken for 3 years was 39 observations. The technique used in this research is multiple linear regression analysis. Based on the results of the analysis of this study proves that profitability, company size, and free cash flow affect dividend policy.

Pengaruh Free Cash Flow, Operating Cash Flow, dan Dividend Payout Ratio Terhadap Nilai Perusahaan

2018 ◽  
Vol 10 (1) ◽  
pp. 52-65
Author(s):  
Suwaldiman Suwaldiman
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Dividend Payout ◽  
Operating Cash Flow ◽  
The Impact

            This research examines the impact of free cash flow, operating cash flow, and dividend payout ratio on the firm value which is represented by stock return.             This research employees a multiple linear regression analysis to test the hypothesis. Samples used in this research are 159 manufacturing companies registered in Indonesia Stock Exchange for the period of 2013, 2014, and 2015.             This research reveals that free cash flow and operating cash flow have no significant impact on the firm value. Those variables seem having no important contents in the point of view of investors. Therefore they do not response to the information. However, this research proves that dividend payout ratio have significant impact on the firm value. It can be concluded that dividend payout ratio is more important than those of free cash flow and operating cash flow. Investors will positively response to the dividend information and it will significantly increase the firm value.

scholarly journals PENGARUH FREE CASH FLOW, LIKUIDITAS DAN KEPEMILIKAN ASING TERHADAP KEBIJAKAN HUTANG PADA PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 3 (1) ◽  
pp. 20-35
Author(s):  
Oktariyani Oktariyani ◽  
Afriyanti Hasanah
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Control Variable ◽  
Multiple Linear Regression Analysis ◽  
Foreign Ownership ◽  
Free Cash Flow ◽  
Analysis Techniques ◽  
Independent Variables ◽  
Debt Policy

This study aims to determine the effect of free cash flow, liquidity and foreign ownership on debt policies in companies listed on the Indonesia Stock Exchange. The samples used in this study are basic and chemical sector companies listed on the Indonesia Stock Exchange for the 2012-2016 period. The independent variables in this study are free cash flow, liquidity and foreign ownership. The control variable in this study is asset structure. The research method uses a quantitative approach with multiple linear regression analysis techniques. The result of this study is that liquidity affects debt policy because the higher the level of liquidity of the company, the greater the company's ability to pay debts. Foreign ownership affects debt policy because foreign ownership can improve the performance and supervision of managers in the company, especially in determining funding decisions including debt policy, while free cash flow has no effect on debt policy, this is because companies tend to prioritize the use of free cash flow funds for investment and operational needs of the company. This research can be used as a reference for companies in determining funding decisions through debt policy so that the funding decisions taken are more effective.

scholarly journals Pengaruh Free Cash Flow dan Pertumbuhan Perusahaan Terhadap Kebijakan Utang Pada Perusahaan Sektor Manufaktur yang Terdaftar di Bursa Efek Indonesia Kategori LQ 45 Tahun 2013 – 2017

2020 ◽  
Vol 1 (1) ◽  
pp. 43-54
Author(s):  
Nur Fadilla ◽  
Fika Aryani
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Statistical Tests ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Coefficient Of Determination ◽  
Significance Level ◽  
Debt Policy

This study aimed to analyze the effect of the Free Cash Flow and Company Growth on Debt Policy. This study was classified quantitative research. The population in this study were manufacturing sector companies listed on the Indonesia Stock Exchange in LQ 45 category 2013 - 2017. The sampling technique was saturated sampling with a population of 9 companies and 40 samples. The analysis used was descriptive statistics, statistical tests and multiple linear regression analysis to see the coefficient of determination, the statistical F value and the statistical t value used in the hypotheses test. The results of this study showed that free cash flow has a partially positive and significant effect on debt policy, with a significance level of 0.004 < 0.05. The company's growth has no effect on debt policy with a significance level of 0.125 > 0.05. The two variables Simultaneously affect debt policy. This was based on the value of F count 5.642 > F table 3.25 with a significance level of 0.007 < 0.05. Predictive ability of the two variables on debt policy is 19.2% while the remaining 80.8% is affected by other factors not included in the research model.

Pengaruh Financial Leverage, Arus Kas Bebas, Profitabilitas Dan Struktur Kepemilikan Institusional Terhadap Manajemen Laba

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Astri Hardirmaningrum ◽  
Hadi Pramono ◽  
Eko Hariyanto ◽  
Hariyanto Wibowo
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Financial Leverage ◽  
Purposive Sampling

Penelitian ini bertujuan untuk menguji pengaruh financial leverage, arus kas bebas, profitabilitas dan struktur kepemilikan institusional terhadap manajemen laba. Sumber data penelitian ini adalah data sekunder yang berupa laporan keuangan tahunan perusahaan yang diperoleh dari website Bursa Efek Indonesia. Sampelnya adalah perusahaan makanan dan minuman yang terdaftar di Bursa Efek Indonesia (BEI) periode 2014-2019 dengan menggunakan teknik purposive sampling dan diperoleh 14 perusahaan sebagai sampel dengan 84 data amatan. Metode analisis data yang digunakan adalah analisis regresi linier berganda. Hasil penelitian ini menunjukan bahwa variabel profitabilitas berpengaruh positif terhadap manajemen laba, variabel arus kas bebas berpengaruh negatif terhadap manajemen laba. Sedangkan variabel financial leverage dan struktur kepemilikan institusional tidak memiliki pengaruh terhadap manajemen laba.  This research aimed to examine the effect of financial leverage, free cash flow, profitability and institutional ownership structure on earnings management. This research's data source is secondary data in the form of company annual financial report obtained from the Indonesia Stock Exchange website. The samples are food and beverage companies listed on the Indonesia Stock Exchange during 2014-2019. The sample selection used purposive sampling technique and obtained 14 companies as samples with 84 observational data. The data analysis method used multiple linear regression analysis. This study indicates that the profitability variable has a positive effect on earnings management, the free cash flow variable has a negative effect on earnings management. While, financial leverage and institutional ownership structure variable don't affect earnings management.

PENGARUH PENGGUNAAN LABA DAN ARUS KAS TERHADAP PERMASALAHAN KEUANGAN PADA PERUSAHAAN MANUFAKTUR

2019 ◽  
Vol 4 (2) ◽  
pp. 641
Author(s):  
Rifani Akbar Sulbahri ◽  
Melda Febriyanti Febriyanti
Keyword(s):  
Cash Flow ◽  
Financial Distress ◽  
Regression Coefficient ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Significance Level ◽  
Positive Effect

This study aims to determine the effect of the use of earnings and cash flow on financial distress in manufacturing companies (metal industry sub-sector and the like in the Indonesia Stock Exchange in 2014-2018). This research on financial distress uses a quantitative approach. The study population includes all metal manufacturing sub-sector manufacturing companies and the like on the Indonesia Stock Exchange in 2014-2018. The sample in this study were 7 companies that were determined by purposive sampling technique. The data analysis method used is multiple linear regression analysis. The results showed that (1) Profit had a positive effect on financial distress. This is indicated by a regression coefficient of 0.038 and a calculated t value of 1.675. t count < t table that is 1.675 < 1.69389. The value of t arithmetic shows that earnings have a positive effect on financial distress. With a significance level of less than 5% (0.004 < 0.05). (2) Cash flow does not affect financial distress. This is indicated by a regression coefficient of 0,000 and a calculated value of -0,060. t arithmetic < t table that is -0.060 < 1.69389, the value of t arithmetic shows that cash flow has no positive effect on financial distress. With a significance level of more than 5% (0.952 > 0.05). (3) The determination determination R2 of 0.292 (29.2%) illustrates that the effect of earnings and cash flow on financial distress is 29.2% while the remaining 70.8% is influenced by other factors.

scholarly journals THE INFLUENCE OF DIVIDEND PAYOUT RATIO AND FREE CASH FLOW TO DEBT TO EQUITY RATIO

2017 ◽  
Vol 8 (1) ◽  
pp. 23
Author(s):  
Yurizki Wida Hapsari ◽  
Isharijadi Isharijadi ◽  
Purweni Widhianningrum
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Dividend Payout ◽  
Analytical Technique ◽  
Dividend Payments

<p>This study aimed to analyze the effect of dividend payout ratio and free cash flow to the debt to equity at the manufacturing companies which listed in the Indonesia Stock Exchange. The population of this study is manufacturing companies which listed in Indonesia Stock Exchange during the year 2010, 2011, 2012, and 2013 a number of 128 companies. Purposive sampling is used for sampling technique, as many as 33 companies. Data analytical technique in the study is multiple linear regression analysis. The results of this study proved that the dividend payout ratio had significant negative effect on the debt to equity. It showed that the dividend payments appeared as a substitute for debt in the capital structure at the company. Free cash flow positively and significantly influenced debt to equity. It was due to the investment in working capital of the company was greater than the company's operating cash flow.<em></em></p>

scholarly journals PENGARUH RISK TAKING DAN FREE CASH FLOW TERHADAP PEMBAGIAN DEVIDEN: (STUDI EMPIRIS PADA BANK UMUM YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2014-2016)

2017 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Indrayani Indrayani ◽  
Aprina Aprina
Keyword(s):  
Regression Analysis ◽  
Cash Flow ◽  
Risk Taking ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Dividend Payout

This study aimed to determine the effect of Risk Taking and Free Cash Flow on Dividend Payout. The number of samples used in this study was 39 observations at Commercial Banks listed on the Indonesia Stock Exchange (BEI) in 2014-2016. The sample was taken by using purposive sampling technique. The method of data analysis used in this research was multiple linear regression analysis. The result of research partially showed that Risk taking had a negative and significant effect on dividend payout and Free Cash Flow had a positive and significant effect on dividend payout. Simultaneously, Risk Taking and Free Cash Flow had a significant effect on dividend payout.

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