FAKTOR – FAKTOR YANG MEMPENGARUHI PERUSAHAAN DALAM MENERAPKAN PRAKTIK MANAJEMEN LABA

Abstract

ABSTRACT

The practice of earnings management is one of the main factors that financial reports do not reflect the actual situation. This practice often occurs in Indonesia. The information contained in the company’s published financial reports is not accurate and affects the company’s future. Therefore, the practice of earnings management is very detrimental to potential investors, companies, and shareholders. This research aimed to examine and analyze the factors that affected the company in the implementation of profit management. The population was 45 companies listed on IDX and the LQ-45 index during 3 years of observation, from 2020 until 2021. Moreover, the research was quantitative. The data were secondary and obtained from the company’s financial statements. Furthermore, the data analysis technique used a classical assumption test, multiple linear regression, proper model test, and hypothesis test. The result showed that tax planning had a positive effect on the practice of profit management. On the other hand, managerial ownership did not affect the practice of profit management. In contrast, audit quality had a negative effect on the practice of profit management.