<![CDATA[This research aims to investigate whether firms with excess of free cash flow and low growth perspective are tend to engage in earnings management with several control variables included. We predict the relationship between each variable using multiple regressions model. The data sample used is manufacturing companies listed in IDX from the year of 2012 to 201. The result of this research presents that there is no significant relationship between excess of free cash flow and earnings management. The reasons behind this result might be a difference in type of agency problem, in dividend policy, and in organization behavior widespread across the countries. However, we found a significant relationship between control variables to the dependent variable by means of discretionary accruals, which are firm size, IFRS implementation and audit quality towards earnings management. Keywords: Agency Problem, Earnings management, Excess Free Cash Flow, Dividend Payment.]]>
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