Impact of Managerial Ownership, Firm Size, Free Cash Flow, Leverage, and Profitability on Earnings Management in Indonesian Infrastructure Firms

Wandirah, Yunita Sukma Ayu and Herijawati, Etty (2025) Impact of Managerial Ownership, Firm Size, Free Cash Flow, Leverage, and Profitability on Earnings Management in Indonesian Infrastructure Firms. eCo-Fin: Economics and Financial, 7 (2). pp. 1329-1344. ISSN 2656-095X

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Official URL: https://jurnal.kdi.or.id/index.php/ef

Abstract

Companies frequently use earnings management as a tactic to sway financial reports, so that it can have an impact on decision making by stakeholders. This phenomenon is of particular concern in the rapidly growing infrastructure sector in Indonesia. This study's objective is to gather empirical data about the impact of managerial ownership, company size, free cash flow, leverage, and profitability on earnings management. The research sample is infrastructure companies that went public on the Indonesia Stock Exchange between 2020 and 2023. 56 firm-year observations in all and 14 selected businesses were obtained through the application of the purposive sampling method. Descriptive statistics, multiple linear regression analysis, traditional assumption tests, and hypothesis testing are all included in SPSS version 25, which was used to analyse the data. The outputs of the study show that management ownership has a 0.739 significant value, company size 0.079, free cash flow 0.020, leverage 0.116, and profitability 0.003. These findings indicate that managerial ownership, company size, and leverage do not have a significant effect on earnings management, while free cash flow and profitability have a significant effect on earnings management.

Item Type:	Article
Uncontrolled Keywords:	Company Size, Free Cash Flow, Leverage, Managerial, Ownership, Profitability
Subjects:	600 Teknologi dan Ilmu Terapan (Bisnis) > 650.05 Majalah & Jurnal Bisnis
Divisions:	Fakultas Bisnis > Akuntansi (S1)
Depositing User:	Muhamad Kemal Prasetyo
Date Deposited:	11 May 2026 09:16
Last Modified:	11 May 2026 09:16
URI:	https://repositori.buddhidharma.ac.id//id/eprint/3194

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