Indonesia Conference Directory

Abstract –This study aims to find empirical evidence of the effect of book-tax differences on earnings growth. Earnings growth is measured using changes in net profit after tax. The independent variables used in this study are temporary differences and permanent differences, while the dependent variable is earnings growth for the next period. The sample is determined based on the purpose sampling method of manufacturing companies listing on the Indonesia Stock Exchange in the 2014-2018 period with a total of 150 companies. The sample was determined based on the purposive sampling method, then the number of samples obtained in this study amounted to 39 companies, so that the total observation in this study was 195 observations. The data used in this study were secondary data, in the form of financial reports and annual reports downloaded via the official IDX website : www.idx.co.id. Data were analyzed using panel data regression analysis which was processed using Eviews software version 10.0. Hypothesis testing using statistical tests t. The results obtained are permanent variable differences from book-tax differences and temporary differences from book-tax differences do not affect earnings growth.