ANALYSIS OF FACTORS AFFECTING EARNINGS MANAGEMENT: EMPIRICAL STUDY IN FOOD AND BEVERAGE COMPANY LISTED IN INDONESIAN STOCK EXCHANGE 2010-2012

The age of the company shows the company's ability to survive and carry out its operations. Company which has a long standing usually have more experience than a new company entering the business world. With the development of technology and along with the progress of time, the company has always figure out how to survive. Due to the arrival of a new competitor, a company that has a long standing must have tried in order to maintain its existence. Usually with a long life, the company will retain the information or to make a new strategy to keep getting the name of the public. But for the newly established company will definitely look for information and strategies in order to compete with companies that have long standing. One of the ways in which the company does is earnings management. Because the new companies are trying to manipulate their financial statements in order to get links or investors. Comparison between debt and assets that indicates what proportion of assets used to secure the debt is called the leverage ratio . This size is strictly related to the 17 presence and absence of a debt agreement . Companies that have high leverage ratios due to the large amount of debt compared to assets of the company suspected of earnings management because the company threatened to default that is unable to meet debt payment obligations on time . The company will try to avoid it by making policies that can increase revenue and profit . Due to the difference of some previous research findings about factors used to effects of earnings management, provide motivation for writers to review the factors which affect earnings management and peeling the differences with previous studies. This research about food and beverage companies and use of observations from 2010 to 2012 which listed Indonesian Capital Market Directory. The model used in this study still cling to the model used in previous studies. Where this model is used to measure the discretionary accruals and many models proposed by previous researchers because this model using cash flow approach