JEFMS Journal

ABSTRACT:

This study aims to determine the effect of tax planning, deferred tax, and company size on earnings management in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. This study is a quantitative study with secondary data from financial statements listed on the IDX and the company's official website. Sampling was done using the purposive sampling method with a sample of 40 companies for three years. The technique used is multiple linear regression analysis using SPSS software.25.
The t-statistical test is known that tax planning has no significant effect on earnings management. This can be seen from the significance value of 0.238 > 0.05, meaning it is insignificant. These results illustrate that when tax planning increases or decreases, there is no significant change in earnings management. Similarly, the deferred tax variable with a significance value of 0.691 > 0.05 means that the deferred tax has no significant effect on earnings management. With these results, it can be interpreted that if the company deferred taxes, it would not make the company perform earnings management because by carrying out current earnings management, the consequence would be to increase the tax burden at the end of the period or in the following year. The company size variable with a significance value of 0.000 > 0.05 means that the size of the company has a significant effect on earnings management, so the larger the size of the company, the higher the tendency to do earnings management.

KEYWORDS:

Earnings Management, Tax Planning, Deferred Tax, Company Size

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