How the effect of deferred tax expenses and tax planning on earning management?

Recognition of the value of deferred tax expense and tax planning subjective gives management the opportunity to practice earnings management. This study aims to determine how much influence tax planning and tax burden in conducting earnings management in manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2017. The method used in this research is descriptive method. Data collection techniques are carried out through secondary data. The population in this study were manufacturing companies of the Food and Beverages Sector listed on the Indonesia Stock Exchange for the 2014-2017 period totaling 43 companies. The sample research method used was purposive sampling. The type of data used is secondary data obtained from the financial statements of company publications in www.idx.co.id. Data is processed through multiple linear regression statistical test methods using SPSS software. Based on the results of statistical tests, concluded that (1) Tax planning has a positive and not significant effect on earnings management, (2) The burden of deferred tax has a positive and not significant effect on the probability of companies making earnings management. The study also found that earnings management did occur with the aim of avoiding reporting losses on companies listed on the Stock Exchange in 2014-2017.