THE EFFECT OF FINANCIAL DESTRESS, FREE CASH FLOW, PROFITABILITY, AND LEVERAGE ON PROFIT MANAGEMENT WITH AUDIT QUALITY AS A MODERATED VARIABLE

Authors

  • Gusmiarni, Desnirita, Regina Deia Soeparyono

Abstract

This study aims to analyze and obtain empirical evidence about the effect of financial difficulties, the flow of free money, profitability, and utilizing earnings management with audit quality as a moderating variable in the production company in the sales sector in Indonesia. The independent variable in this study financial distress, free cash flow, Profitability, and influence. A variable which depends in this study is earnings management. A Moderating variable in this study is the quality audit. The sample of this study is manufacturing companies in the sector of consumer products, which are listed in the Indonesia Stock Exchange (IDX) in the period 2014-2018. Data collected by method a try. In total, 130 data, a statement of annual financial specified as an observation. Method of analysis this study uses multiple regression analysis. The results of this study indicate that (1) the financial pressure has a significant effect on revenue management, (2) the flow of cash significantly has a huge impact on revenue management, (3) does not affect financial management, (4) does not have an impact on financial management, (5) financial have a significant effect on the financial pressure with the advantage of a huge financial as a financial advantage,, (7) profitability has quite a big effect on earnings management with audit quality as moderating variable, (8) leverage does not affect earnings management with audit quality as moderating variable.

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Published

2020-12-01

How to Cite

Gusmiarni, Desnirita, Regina Deia Soeparyono. (2020). THE EFFECT OF FINANCIAL DESTRESS, FREE CASH FLOW, PROFITABILITY, AND LEVERAGE ON PROFIT MANAGEMENT WITH AUDIT QUALITY AS A MODERATED VARIABLE. PalArch’s Journal of Archaeology of Egypt / Egyptology, 17(6), 7767 - 7786. Retrieved from http://mail.palarch.nl/index.php/jae/article/view/2153