PENGARUH PERENCANAAN PAJAK, GOOD CORPORATE GOVERNANCEDAN TRANSAKSI AFILIASITERHADAP MANAJEMEN LABA

Abstract

Earnings information of a company is often used by internal or external parties as a basis for decision making such as the distribution of bonuses to managers, assessing management performance and the basis for determining the amount of tax. Achievement of the amount of profit or corporate profits can trigger management to take deviant actions in reporting earnings information which is known as earnings management practices. This research generally aims to minimize earnings management practices by taking into account tax planning, implementing Good Corporate Governance, and conducting affiliated transactions appropriately to avoid conflicts of interest between the owner as the principal and the manager as an agent. This research is a quantitative study using a population of manufacturing companies in business groups listed on the Indonesia Stock Exchange in the period 2014-2017, the number of samples in this study were 32 research samples using purposive sampling method. Testing the hypothesis by using multiple linear regression analysis. Based on the test results show that tax planning, managerial ownership and affiliated transactions have a positive and significant effect on earnings management practices while the board of commissioners and audit committee have a negative and significant effect on earnings management. However, based on the analysis in this study, institutional ownership did not affect earnings management.
Keywords: Tax planning, Good Corporate Governance, Affiliated Transactions, Earnings Management