The Effect Of Current Tax Expense And Deferred Tax Expense On Earnings Management In Financial Services Sub-Sector Companies On The Indonesia Stock Exchange In The 2019-2022 Period
1Made Eddy Saka, 2Bambang Raditya Purnomo
Abstract
In general, earnings management refers to the actions of company managers to present financial data including financial statements with presentation standards based on generally applicable rules with the aim of presenting data so that users of financial statements focus on the company’s performance and condition. Earnings management involves decisions taken by managers in determining accounting policies that can affect financial statements in order to achieve various specified goals. One way to do this is by choosing a particular accounting method in presenting financial statements, such as those that affect the profits reported by the company. This also applies to tax calculation methods, both in determining related expenses and income.
This study aims to determine the effect of current tax burden and deferred tax burden on earnings management in financial services sub-sector companies on the Indonesia Stock Exchange for the 2019-2022 period. The population in this study was 17 companies while the sample used in this study was 9 companies. The sample was selected using purposive sampling. The analysis method used is quantitative analysis. The data was tested using SPSS 25 using descriptive tests, classical assumption tests, multiple linear regression analysis, and hypothesis tests.
The results of this study indicate in the t-test results that the current tax burden variable has an effect on profit management which can occur due to fiscal corrections. The deferred tax variable has no effect on profit management which can occur due to temporary differences or fiscal losses. The results of the F-test of the current tax burden and deferred tax variables simultaneously have no effect on profit management in financial services sub-sector companies on the Indonesia Stock Exchange for the 2019-2022 period.