This research purpose is to analyze the effect of leverage, free cash flow, and firm size on earnings management of
mining companies listed on Indonesia Stock Exchange 2010-2014. Earnings management is managerial activity to intervene in
financial statements to generate the desired profit level in income statement. This study uses discretionary accruals as a proxy
for earnings management, and Jones Model was used for calculation of discretionary accruals.
The population in this study is all mining companies registered in Indonesia Stock Exchange period of 2010-2014. The
samples used are selected using purposive sampling method. Data were analyzed using panel data regression analysis.
The results of study showed that leverage, free cash flow, and firm size have a significant effect on earnings
management simultaneously. In partial variable firm size have a significant effect on earnings management with a positive
direction. While variable leverage and free cash flow have no significant effect on earnings management.
Keywords: Earnings Management, Leverage, Free Cash Flow, Firm Size.