PENGARUH TAX PLANNING TERHADAP EARNINGS MANAGEMENT PADA PERUSAHAAN MANUFAKTUR DI BEI

Abstract

Financial statement is prepared and it only focuses on profit information only. Eventually, profit will influence the final result from various decision-making, one of them are tax payment. Some companies carry out earnings management practice to minimize the tax payment, one of the ways are by doing the tax planning which is in accordance with the provisions of the existing laws. This main aims of this study is to test whether the effect of tax planning to earnings management. The sampels are 25 manufacturing companies which are listed in Indonesia Stock Exchange (IDX) and they have been selected by using purposive sampling. The audited financial statement data has been retrieved through the data which has been published by the Indonesia Stock Exchange. Analysis technique the used is the simple linear regressions test, the hypothesis test, and The normality test. The result of this research shows that tax planning has positive influence to the earnings management which is listed in Indonesia Stock Exchange which has done the earnings management with the enhancement of the profit management opportunity to avoid the profit decrease through tax planning, or it is commonly known as the point of zero profit changes.
Keywords : Tax planning, earnings management, the point of zero profit changes