The Effect of Corporate Governance, Leverage and Free Cash Flow on Earnings Management

This study aims to analyze the effect of independent commissioners, managerial ownership, institutional ownership, audit committees, leverage and free cash flow on earnings management in manufacturing companies listed on the Indonesia Stock Exchange. This study uses secondary data obtained from the financial reports of manufacturing companies. This research is a quantitative study with multiple linear regression analysis techniques using SPSS software. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2018-2021. The sampling technique in this study used a purposive sampling method and obtained 60 manufacturing companies that met the criteria with 180 data that were used as samples in the study. The results of the study show that the board of commissioners is independent, leverage and free cash flow have an effect on earnings management. Meanwhile, managerial ownership, institutional ownership and audit committee have no effect on earnings management