TAX PLANNING, INFORMATION ASYMMETRY AND FREE CASH FLOW TO EARNINGS MANAGEMENT WITH GOOD CORPORATE GOVERNANCE AS A MODERATING VARIABLE

This research was conducted with the aim of examining the effect of tax planning, information asymmetry and free cash flow on earnings management, as well as good corporate governance as a moderator of the relationship between tax planning, information asymmetry and free cash flow on earnings management. The data used is in the form of annual reports of companies in the goods & consumer industry sector listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. The method used is quantitative with an analytical tool in the form of multiple linear regression. The results show that tax planning and information asymmetry have an effect on earnings management, while free cash flow has no effect on earnings management. Good corporate governance is able to moderate the relationship between tax planning, information asymmetry and free cash flow on earnings management. The implications of this research are expected to make a positive contribution to investors and creditors to be more careful in assessing management performance, company conditions and understanding reported earnings, because these profits are not necessarily true profits. This research is expected to provide input for companies to observe earnings management activities carried out by management for the benefit of management itself.