Pengaruh Corporate Governance, Leverage, Free Cash Flow, dan Ukuran Perusahaan terhadap Manajemen Laba pada Perusahaan Farmasi yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2021

Abstract

The objective of this research is to discover and analyze the effect of corporate governance as proxied by managerial ownership and board of director, leverage, free cash flow, and firm size on earnings management in pharmaceutical companies listed on the Indonesia Stock Exchange in 2017-2021. The data used in this research is secondary data obtained from www.idx.co.id and also the company's official website. The population used was 11 companies and the sample used was 9 pharmaceutical companies using purposive sampling method, in order to obtain 45 total observations. The results of this research indicate that managerial ownership in corporate governance, leverage, and firm size have positive insignificant effect on earnings management. The board of director in corporate governance has a negative insignificant effect on earnings management. Free cash flow has a significant negative effect on earnings management. And simultaneously managerial ownership and board of director in corporate governance, leverage, cash flow, and firm size effect to earnings management.