The Moderation of Corporate Governance in the Effect of Surplus Free-Cash-Flow on Earnings Predictability

DOI

10.2991/aebmr.k.220501.052How to use a DOI?

Keywords

Surplus Free-Cash-Flow; Earnings Predictability; Corporate Governance

Abstract

This research aimed to reveal the effect of surplus free-cash-flow on earnings predictability as well as the moderation effect of board independence, board size, dan independent chairman in that relationship. The subject of this research is manufacturing firms that were listed on Indonesia Stock Exchange (IDX) during the period of 2016 - 2018. This research design is descriptive research with purposive sampling method to test the effect of independent variables on the dependent variables, and also the effect of moderation variables in that relationship. The hypothesis testing was done by using panel data regression and moderation regression model using EViews 11. The results indicate that firms’ earnings from using the assets has a significant effect on earnings predictability, and there’s no significant effect of institutional ownership dan managerial ownership in the relationship between surplus free-cash-flow and earnings predictability. The implication of this study is the need to pay attention to firm performance to improve the predictive value of earnings.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Henny Wirianata
AU  - Elsa Imelda
AU  - Yetty Yetty
PY  - 2022
DA  - 2022/05/11
TI  - The Moderation of Corporate Governance in the Effect of Surplus Free-Cash-Flow on Earnings Predictability
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 344
EP  - 349
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.052
DO  - 10.2991/aebmr.k.220501.052
ID  - Wirianata2022
ER  -