The Effect of Audit Quality, Tax Planning and Leverage on Earning Magement
Agustine Dwianika
Universitas Pembangungan Jaya, Tangerang
Email: Agustine.dwianika[at]upj.ac.id; Agustine.dwianika2017[at]gmail.com
Abstract
Abstract This study is to address a current issues about how important of audit quality for supporting firm-s performance, due still there a research gap from previous literatures about the effects of audit quality on earnings management. The purpose of this paper is to illustrate and examine the effect of audit quality on the relationship of tax planning rates and leverage on earnings management, based on evidence in Indonesia. This research is a quantitative study using secondary data obtained from the companys annual report. The research population is LQ-45 companies listed on the Indonesia Stock Exchange in 2013-2017 as many as 45 companies. The sampling technique in this study used purposive sampling. Samples that met the criteria in this study were used by 12 companies. The data analysis technique used was multiple linear regression analysis using SPSS 22 for Windows. The results of this study indicate that tax planning and leverage affect earnings management. While audit quality as a moderating variable strengthens the relationship between tax planning and leverage on earnings management. This research provides futher evidence of earnings management related about audit quality, tax planning and leverage separately for academically side. For practitioners, it can be used as a consideration in making investment decisions, that there is a connection between the things that become variables in this study. Keywords: Audit Quality, Tax Planning, Leverage and Earnings Management JEL Classification: A12-Relation of Economic to Other Diciplines
Keywords: Keywords: Audit Quality, Tax Planning, Leverage and Earnings Management
Topic: International Conference of Islamic Economic and Financial Inclusion