The Impact of Financial Distress, Free Cash Flow, Information Asymmetry, and Firm Size on Real Earnings Management
Abstract
Companies sometimes experience unfavourable situations, prompting managers to involve themselves in preparing financial reports to engage in earnings management practices. The existence of earnings management practices arises due to the influence of several factors. This research aims to examine the influence of financial distress, free cash flow, information asymmetry, and firm size on real earnings management. The population of this study comprises consumer non-cyclicals companies listed on the Indonesia Stock Exchange from 2020 to 2022. Purposive sampling was utilized as the sampling technique, resulting in a total sample of 64 companies. Multiple linear regression was employed as the analysis technique. The results of this research indicate that financial distress and free cash flow do not have a positive effect on real earnings management. Meanwhile, information asymmetry and firm size have a negative effect on real earnings management.
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References
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Tsaqif, B. M., & Agustiningsih, W. (2021). Pengaruh Financial Distress dan Ukuran Perusahaan Terhadap Manajemen Laba dengan Kepemilikan Manajerial sebagai Variabel Moderasi. Jurnal Akuntansi Dan Governance, 2(1), 53. https://doi.org/10.24853/jago.2.1.53-65
Christi, T. B., Fitriyani, D., & Ernawati, M. (2022). Pengaruh Kepemilikan Manajerial, Ukuran. Jurnal Manajemen Terapan Dan Keuangan (Mankeu, Vol. 11 No(04), 1059–1068.
Christina, B. M., & Malau, H. (2021). Pengaruh Kepemilikan Institusional, Ukuran Dan Umur Perusahaan Terhadap Praktik Perataan Laba (Studi Kasus Pada Perusahaan BUMN Yang Terdaftar Di Bursa Efek Indonesia Tahun 2017-2019). Akuntansi : Jurnal Akuntansi Integratif, 7(1), 26–44. https://doi.org/10.29080/jai.v7i1.440
Irawan, S., & Apriwenni, P. (2021). Pengaruh Free Cash Flow, Financial Distress, Dan Investment Opportunity Set Terhadap Manajemen Laba. Jurnal Akuntansi Bisnis, 14(1), 24–37. https://doi.org/10.30813/jab.v14i1.2458
Ita, M., Fitrios, R., & Odiatma, F. (2020). The Effect of Free Cash Flow , Leverage Ratio , Profitability Ratio and Information Asymetric on Earning Management. I-Economic: A Research Journal on Islamic Economics, 6(2), 152–168. https://doi.org/10.19109/ieconomics.v6i2.7125
Jacoby, G., Li, J., & Liu, M. (2019). Financial distress, political affiliation and earnings management: the case of politically affiliated private firms. European Journal of Finance, 25(6), 508–523. https://doi.org/10.1080/1351847X.2016.1233126
Jensen, M., & Meckling, W. (2012). Theory of the firm: Managerial behavior, agency costs, and ownership structure. The Economic Nature of the Firm: A Reader, Third Edition, 283–303. https://doi.org/10.1017/CBO9780511817410.023
Khairiyahtussolihah, A., Darussalam, W. A., & Sovia, A. K. (2022). Moderate Effect of Institutional Ownership on Financial Distress, Free Cash Flow and Tax Planing on Real Earning Management, Jurnal Ekonomi, 11(02), 759–765.
Krisnando, K., & Damayanti, S. (2021). Pengaruh Financial Distress, Komite Audit, dan Ukuran Perusahaan terhadap Manajemen Laba. Jurnal STEI Ekonomi, 30(01), 101–113. https://doi.org/10.36406/jemi.v30i01.431
Lavina, S. G., & Destriana, N. (2023). Pengaruh Free Cash Flow, Board Size, Dan Karakteristik Perusahaan Terhadap Manajemen Laba. E-Jurnal Akuntansi TSM, 3(2), 317–332. https://doi.org/10.34208/ejatsm.v3i2.2085
Li, Y., Li, X., Xiang, E., & Geri Djajadikerta, H. (2020). Financial distress, internal control, and earnings management: Evidence from China. Journal of Contemporary Accounting and Economics, 16(3), 100210. https://doi.org/10.1016/j.jcae.2020.100210
Mulumbot, F. J., & Sumanti, E. (2020). Pengaruh Asimetri Informasi Dan Mekanisme Tata Kelola Perusahaan Terhadap Manajemen Laba. Klabat Accounting Review, 1(1), 27. https://doi.org/10.31154/kar.v1i1.455.27-40
Mulyati, Y., & Kurnia, B. (2023). Pengaruh Ukuran Perusahaan, Profitabilitas, Leverage, Free Cash Flow, Dan Financial Distress Terhadap Manajemen Laba Perusahaan Infrastruktur, Utilitas, dan …. Owner: Riset & Jurnal Akuntansi, 7(2), 1596–1611. http://repository.stieykpn.ac.id/id/eprint/1016%0Ahttp://repository.stieykpn.ac.id/1016/1/Ringkasan Skripsi Maulida Dwi Pratiwi- 111628984.pdf
Nurhayati, P., Devi, H. P., & Azizah, A. M. (2022). Pengaruh asimetri informasi, corporate governance terhadap earning management pada perusahaan BUMN di Indonesia. Owner, 6(1), 792–801. https://doi.org/10.33395/owner.v6i1.466
Richardson, V. J. (2005). Information Asymmetry and Earnings Management: Some Evidence. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.83868
Rini, P., & Amelia, S. (2022). Pengaruh Asimetri Informasi, Ukuran Perusahaan, dan Leverage Terhadap Manajemen Laba. Jurnal Akutansi Dan Bisnis Indonesia, 3(1), 12–23.
Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. https://doi.org/10.1016/j.jacceco.2006.01.002
Sakdiyah, H., Salim, A., & Rahman, F. (2020). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Profitabilitas Dan Leverage Terhadap Manajemen Laba (Studi Pada Perusahaan Pertambangan Yang Terdaftar Di Bei Periode 2016-2019). E-Jurnal Riset Manajemen, 109–123.
Thyas, N. A. C., Wijayanti, A., & Astungkara, A. (2022). Analisis Pengaruh Leverage, Ukuran Perusahaan, Free Cash Flow, Dan Operating Cash Flow Terhadap Manajemen Laba Perusahaan. FINANSIA : Jurnal Akuntansi Dan Perbankan Syariah, 5(01), 55. https://doi.org/10.32332/finansia.v5i01.4545
Trisnawati, R., Mardayaningrum, & Khotimah, L. (2018). Determinan Manajemen Laba Akrual Pada Indeks LQ45 Dan JII Riset Akuntansi Dan Keuangan Indonesia , 3 ( 2 ), 2018. Riset Akuntansi Dan Keuangan Indonesia, 3(2), 141–151.
Yanti, T. R., & Ery Setiawan, P. (2019). Pengaruh Asimetri Informasi, Ukuran Perusahaan, Leverage dan Profitabilitas pada Manajemen Laba. E-Jurnal Akuntansi, 27, 708. https://doi.org/10.24843/eja.2019.v27.i01.p26
Tsaqif, B. M., & Agustiningsih, W. (2021). Pengaruh Financial Distress dan Ukuran Perusahaan Terhadap Manajemen Laba dengan Kepemilikan Manajerial sebagai Variabel Moderasi. Jurnal Akuntansi Dan Governance, 2(1), 53. https://doi.org/10.24853/jago.2.1.53-65
Published
2024-10-09
How to Cite
LUHUNG, Istiqomah Adi; SARI, Shinta Permata.
The Impact of Financial Distress, Free Cash Flow, Information Asymmetry, and Firm Size on Real Earnings Management.
E-Jurnal Akuntansi, [S.l.], v. 34, n. 9, oct. 2024.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/114080>. Date accessed: 21 nov. 2024.
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