The effect of operating cash flow and profit management on company's profitability and growth: Study at PT Baturaja Multi Usaha

Hari Liandu; Mohamad Adam; Marlina Widiyanti; Isnurhadi Isnurhadi

doi:10.21744/ijbem.v6n3.2170

Authors

Hari Liandu Sriwijaya University, Palembang, Indonesia
Mohamad Adam Sriwijaya University, Palembang, Indonesia
Marlina Widiyanti
marlinawidiyanti68@yahoo.co.id
Sriwijaya University, Palembang, Indonesia
Isnurhadi Sriwijaya University, Palembang, Indonesia

Keywords:

company growth, earnings management, operating cash flow, profit management, profitability

Abstract

This study aims to determine the effect of operating cash flow on profitability and the effect of earnings management on corporate growth. Operating cash flow is measured by the growth of operating cash flow, while profitability is measured by return on assets (ROA). Earnings management is measured through discretionary accruals, and growth is measured through asset growth. Research conducted at PT. Baturaja Multi Usaha with a monthly research period from 2019-2021. The research uses quantitative methods, simple linear regression data analysis techniques, and hypothesis testing. The results showed that operating cash flow had a positive and significant effect on profitability (ROA), while earnings management significantly affected company growth.

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