EFFECT OF TAX PLANNING, RETURN ON ASSETS, AND DEFERRED TAX EXPENSES ON EARNING MANAGEMENT IN AUTOMOTIVE SUB SECTOR COMPANIES AND COMPONENTS

Abstract

This study’s goal is to determine how big the effect of the ratio of Tax Planning, Return On
Assets (ROA), and Deferred Tax on Earning Management in Automotive Sub Sector
Automotive Companies and Components Registered on the Stock Exchange in 2016 - 2018.
The method that researcher used in this study is associative quantitative research. About the
collection techniques of the data are carried out by collecting financial statement documents
from www.idx.co.id in the period 2016 - 2018. To analysis the data, the researcher use
method like multiple linear regression, coefficient of determination, t test, F test. The sample
in this study were 20 companies with data consisting of 3 years. The sample selection is done
by purposive method. The results showed that the ratio of tax planning, return on assets
(ROA), deferred tax expenses have significant effect toward earnings management in
automotive sub-sector companies and components listed on the IDX in 2016 - 2018
amounting to 60.3%. The independent variable which have a dominant influence is the tax
planning variable.