Impact of Free Cash Flow, Meetings Board of Commissioner and Existence Board of Commissioner on Earnings Management of State Owned Company in Indonesia Nastiti Rizky Shiyammurti(a*) , Bambang Tjahjadi(b)
Department of Accounting
Airlangga University
Jl. Airlangga No.4 - 6, Airlangga, Kec. Gubeng, Kota SBY, Jawa Timur 60115, Indonesia
Abstract
This study aims to determine the effect of Free Cash Flow (FCF) and Existence of Board of Commissionaire on firm value as proxied by the discretionary accruals in BUMN companies listed on the Indonesia Stock Exchange (IDX). The population in this study is a BUMN Companies listed on the Indonesia Stock Exchange (IDX) with a sample obtained using the Purposive Sampling method as many as 20 companies and a 6-year observation period (2016-2021) so that there are 120 observations. This study uses panel data regression analysis using Eviews version 9. Based on the results of data analysis, free cash flow has no effect on earnings management. meetings of the board of commissioners have no effect on earnings management, and existence the board of commissioners have no effect on earnings management.. Furthermore, the results of the study indicate that the Free Cash Flow (FCF), Meetings of Board of Commissionaire, and Existence Board of Commissionaire variables simultaneously have a significant effect earnings management. This is indicated by the calculated F value of 3.201742 with a significance value of 0.000035. The coefficient of determination (adjusted R2) is 0.298515 or 29.85% while the remaining 70.15% is influenced by other factors not discussed in this study.
Keywords: Free Cash Flow- Meetings Board of Commissionaire- Existence Board of Commissionaire- Return on Asset- Earnings Management
