Studi Hubungan Surplus Free Cash Flow Terhadap KEcenderungan Melakukan Earnings Management Pada Badan Usaha Sektor Manufaktur di BEI Periode 2010-2011

摘要

The purpose of this study is to examine the relationship between surplus free cash flow (SFCF)\udand earnings management. This study argues that managers in companies with low growth\udand high surplus free cash flow tend to use discretionary accounting accrual (DAC) to offset\udnegative earning related to their investments with negative net present value (NPV). Besides\udthat, we expect that the positive relationship between surplus free cash flow (SFCF) and\udearnings management is moderated by audit quality and institutional shareholder. This\udresearch uses quantitative approach with 205 companies listed in Bursa Efek Indonesia for the\udyear 2010 - 2011 as a sample. The findings of this research show that there is positive\udsignificant relationship between high SFCF in company that has low growth with earnings\udmanagement. This study Jailed to proof that audit quality and institutional shareholder\udmoderate the relationship between high SFCF and earnings management.