Proceedings of the 2nd UPY International Conference on Education and Social Science (UPINCESS 2023)

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The Effect of Capital Structure, Information Asymmetry, and Free Cash Flow on Earnings Quality

Authors
Ayuni Fitria1, *, Fitriyah Nurhidayah1, Rudi Harianto1, Irma Paramita Sofia1
1Universitas Pembangunan Jaya, Sawah Baru Ciputat Tangerang Selatan, Jl. Cendrawasih Raya Blok B7/P, Tangerang, Indonesia
*Corresponding author. Email: fitriyah.nurhidayah@upj.ac.id
Corresponding Author
Ayuni Fitria
Available Online 31 December 2023.
DOI
10.2991/978-2-38476-176-0_79How to use a DOI?
Keywords
Capital Structure; Information Asymmetry; Free Cash Flow; Earnings Quality; Consumer Non-Cyclicals
Abstract

This study analyzes the effect of capital structure, information asymmetry, and free cash flow on earnings quality. Capital structure is measured by the debt ratio, information asymmetry is proxy by the measure of liquidity, and free cash flow is measured by the FCF ratio. The hypothesis in this study is that capital structure affects earnings quality, information asymmetry affects earnings quality, and free cash flow affects earnings quality, and simultaneously influences the capital structure, information asymmetry, and free cash flow on earnings quality. The sample in this study is Consumer Non-Cyclicals listed on the Indonesia Stock Exchange which publishes financial reports consecutively for the 2017–2021 period. Determination of the sample in this study using the purposive sampling method. The analytical method used is multiple linear regression analysis using eviews software. The results of this study indicate that capital structure has no effect on earnings quality, information asymmetry has no effect on earnings quality, free cash flow has effect on earnings quality but capital structure, information asymmetry, and free cash flow simultaneously have an effect on earnings quality.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd UPY International Conference on Education and Social Science (UPINCESS 2023)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 December 2023
ISBN
978-2-38476-176-0
ISSN
2352-5398
DOI
10.2991/978-2-38476-176-0_79How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Ayuni Fitria
AU  - Fitriyah Nurhidayah
AU  - Rudi Harianto
AU  - Irma Paramita Sofia
PY  - 2023
DA  - 2023/12/31
TI  - The Effect of Capital Structure, Information Asymmetry, and Free Cash Flow on Earnings Quality
BT  - Proceedings of the 2nd UPY International Conference on Education and Social Science (UPINCESS 2023)
PB  - Atlantis Press
SP  - 546
EP  - 554
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-176-0_79
DO  - 10.2991/978-2-38476-176-0_79
ID  - Fitria2023
ER  -