The Effect of Audit Quality, Tax Planning and Leverage on Earnings Management
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 2 No. 2 (2022): Optimizing Global Benefit for Future Wellbeing
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. This paper aims 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 quantitative study using
secondary data obtained from the company's annual report.
The research population is LQ-45 firms listed on the
Indonesia Stock Exchange in 2013-2017 as many as 45
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
study 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.
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