IDEAS home Printed from https://ideas.repec.org/a/uii/jrambr/v3y2023i1p14-23id25089.html
   My bibliography  Save this article

The effect of free cash flow and leverage on earnings management: Moderating role of good corporate governance

Author

Listed:
  • Aprih Santoso

Abstract

The purpose of this study is to provide empirical evidence on the impact of free cash flow and leverage on revenue management moderated by the variable of good corporate governance. The research sample consisted of 200 data samples drawn from 20 sub-sectors of the company's consumer products on 2011-2020. The sampling technique used was intentional sampling. Data were analyzed by Moderate Regression Analysis (MRA). The testing results show that free cash flow has a significant negative impact on earnings management, leverage has no impact on earnings management, good corporate governance can mitigate free cash flow, and lastly good corporate governance has a negative impact on earnings management. It shows that the effects of leverage cannot be mitigated. Discussion of the findings that are not in accordance with the initial hypothesis is explained in the final section and the implications of this article.

Suggested Citation

  • Aprih Santoso, 2023. "The effect of free cash flow and leverage on earnings management: Moderating role of good corporate governance," Asian Management and Business Review, Master of Management, Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 3(1), pages 14-23.
    • Handle: RePEc:uii:jrambr:v:3:y:2023:i:1:p:14-23:id:25089
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/AMBR/article/view/25089
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:jrambr:v:3:y:2023:i:1:p:14-23:id:25089. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/AMBR/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.