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The difference in interests between the principal and the agent in maximizing ones own well-being is the cause of agency conflict and most likely the agent does not always act in the best interests of the principal. The study aims to determine the effect of free cash flow and company size on earnings management in banking companies on the IDX. Research period 2016-2017, secondary data in the form of annual financial statements, with a sample of 30 banking companies, data analysis using WarpPls. The results of this study indicate that free cash flow has a positive effect on earnings management, Size has a negative effect on earnings management, Size cannot moderate free cash flow on Profit Management, and free cash flow cannot moderate Size on earnings management.