The generation of residual stresses in orthogonal machining is analysed by using an Arbitrary Lagrangian Eulerian (ALE) finite element approach. It is shown that a substantial level of tensile residual stresses can be obtained in the vicinity of the machined surface without any contribution of thermal effects. This motivates the development of a parametric study to analyse the effects of the thermomechanical coupling parameters on residual stresses. The roles of thermal expansion, of thermal softening and of the Taylor-Quinney coefficient (controlling the heat generated by plastic flow) are considered separately. The influence of friction is also analysed by assuming dry cutting conditions and a Coulomb friction law. The friction coefficient has a complex effect by controlling heat generation (frictional heating) along the tool rake and clearance faces and the propensity for the chip to stick to the tool. Geometrical effects such as the tool rake angle and the tool edge radius are also discussed.