scholarly journals Does Transfer Pricing Moderate the Effect of Deferred Tax Assets and Deferred Tax Expenses on Accrual Earnings Management of Firms in Indonesia?

2021 ◽  
Vol 6 (3) ◽  
pp. 97-103
Author(s):  
Nera Marinda Machdar ◽  
Dade Nurdiniah
Keyword(s):  
Earnings Management ◽  
Transfer Pricing ◽  
Manufacturing Companies ◽  
Moderator Variable ◽  
Policy Makers ◽  
Deferred Tax Assets ◽  
Management Actions ◽  
Deferred Tax ◽  
Accounting Policy

The purpose of this study is to analyze (a) the effect of deferred tax assets on accrual earnings management; (b) the effect of deferred tax expenses on accrual earnings management; (c) the role of transfer pricing as a moderator variable to strengthen the effect of deferred tax assets on accrual earnings management; and (d) the role of transfer pricing as a moderator variable to strengthen the effect of deferred tax expenses on accrual earnings management. The samples consist of 160 manufacturing companies listed in Indonesia Stock Exchange (IDX). The study utilizes the financial statements from 2012 to 2018. This study presents that (a) deferred tax assets influence accrual earnings management; b) deferred tax expenses affect accrual earnings management; c) transfer pricing does not strengthen the effect of deferred tax assets on accrual earnings management; and d) transfer pricing does not strengthen the effect of deferred tax expenses on accrual earnings management. This study contributes to accounting studies, tax authorities and regulators, and accounting policy makers. Firstly, this research contributes to the development of accounting studies on the role of transfer pricing as a moderator of the effect of deferred tax assets and deferred tax liabilities on earnings management. Secondly, the results of this study can make a consideration for tax authorities and regulators in addressing company management actions to minimize the amount of tax paid by utilizing policies according to PSAK. It is worth considering how to sanction companies that deliberately reduce the amount of tax that should be paid. It is necessary to conduct tax investigation by the Directorate General of taxes on companies that are indicated to have practiced accrual earnings management with the aim of reducing the tax burden. Thirdly, accounting policy makers need to consider how management reduces the tax that should be paid through accounting policies that are allowed under PSAK and transfer pricing mechanism.

scholarly journals Pajak Kini, Pajak Tangguhan, Aset Pajak Tangguhan, Liabilitas Pajak Tangguhan Terhadap Manajemen Laba

2020 ◽  
Vol 5 (2) ◽  
pp. 158-1665
Author(s):  
Marista Winanti Sutadipraja ◽  
Sri Setia Ningsih ◽  
Mardiana Mardiana
Keyword(s):  
Earnings Management ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Least Square ◽  
Manufacturing Companies ◽  
Deferred Tax Assets ◽  
Management Actions ◽  
Deferred Tax ◽  
Research Period

The purpose of this study was to examine whether there is an effect of current tax expense, deferred tax, deferred tax assets, and deferred tax liability on earnings management actions in consumer goods companies listed on the Indonesia Stock Exchange (IDX). This study's sample consisted of 27 consumer goods industries listed on the Indonesia Stock Exchange in 2013-2017 using the purposive sampling method. Hypothesis testing in this study using the t-test. Earnings management is proxied by discretionary accruals using the Modified Jones Model. The type of data used is secondary data. Data analysis used OLS (regression equation analysis ordinary least square). The results show that the current tax has a significant effect on earnings management variables. The deferred tax affects earnings management, deferred tax assets affect earnings management, and deferred tax liabilities have no effect on earnings management. Research limitations The sample of companies used is considered less representative of the population because only manufacturing companies are used consumer goods. The research period in measuring earnings management variables is proxied by discretionary accruals for only five consecutive years, according to Jones (1991). profit can be seen if the research period is carried out for eight years. In this study, it is suggested that the research period used can be added, and the sample used can be extended to other company sectors and other measures of earnings management by using proxies.

scholarly journals PENGARUH ASET PAJAK TANGGUHAN DAN BEBAN PAJAK TANGGUHAN TERHADAP MANAJEMEN LABA

2015 ◽  
Vol 1 (2) ◽  
pp. 12-20
Author(s):  
Tiara Timuriana ◽  
Rezwan Rizki Muhamad
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Deferred Tax Assets ◽  
Data Processing Method ◽  
Accounting Numbers ◽  
Deferred Tax ◽  
Descriptive Statistical Analysis ◽  
Tax Expense

The financial statements of the company produced and prepared as a management accountability to investors so that it reflects the company's activities. The liability is not limited to management purposes but also for the benefit of the tax authorities. The big difference in the spur interest and information management to consider how accounting numbers generated can maximize its interests. How that can be done to influence the management accounting numbers can be the earnings management through deferred tax assets and deferred tax expense in the financial statements. This study aims to: (1) Describing the effects of deferred tax assets on earnings management in manufacturing companies in Indonesia Stock Exchange 2010-2014. (2) Describe the effect of deferred tax expense on earnings management in manufacturing companies in Indonesia Stock Exchange 2010-2014. (3) Describe the effect of deferred tax assets and deferred tax expense on earnings management in manufacturing companies in Indonesia Stock Exchange 2010-2014. Data processing method is by descriptive statistical analysis with analysis tools that multiple linear regression. Research shows that: (1) Assets Deferred tax effect on earnings management, (2) Deferred tax expense has no effect on earnings management, and (3) Deferred tax assets and deferred tax expense jointly effect on earnings management.Key words: Asset deferred tax, deferred tax expense, and earnings management

scholarly journals PENGARUH BEBAN PAJAK TANGGUHAN, PERENCANAAN PAJAK DAN AKTIVA PAJAK TANGGUHAN TERHADAP MANAJEMEN LABA

2019 ◽  
Vol 4 (2) ◽  
pp. 191
Author(s):  
Lutfi M. Baraja ◽  
Yuswar Zainul Basri ◽  
Vertari Sasmi
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Stock Exchange ◽  
Positive Influence ◽  
Tax Planning ◽  
Manufacturing Companies ◽  
Deferred Tax Assets ◽  
Independent Variable ◽  
Deferred Tax ◽  
Tax Expense

<p><em>This study aimed to examine the effect of deferred tax expense, tax planning, and the deferred tax assets to earnings management. The independent variable of this research is deferred tax expense, tax planning and deferred tax assets, the dependent variable of this study is the disclosure of Earnings Management. The sample used in this research is manufacturing companies listed in Indonesia Stock Exchange (BEI) in 2013-2015 as many as 46 companies by using purposive sampling method. This study uses multiple methods of analysis using SPSS 23. These results indicate that in partial deferred tax expense, tax planning and deferred tax assets has positive influence on the disclosure of earnings management.</em></p>

scholarly journals The Role Of Independent Commissioners In Moderating The Effect Of Transfer Pricing, Capital Intensity And Profitability Towards Tax Aggressivity

2021 ◽  
Vol 19 (2) ◽  
pp. 181
Author(s):  
Nuryatun Nuryatun ◽  
Susi Dwi Mulyani
Keyword(s):  
Stock Exchange ◽  
Transfer Pricing ◽  
Capital Intensity ◽  
Analysis Tool ◽  
Manufacturing Companies ◽  
Tax Aggressiveness ◽  
Management Actions ◽  
Transfer Prices ◽  
Tax Payments

<p>Tax is a sector that plays an important role in the economy. The largest state revenue must continue to be increased so that the country's growth and development can run well. But for business tax as a burden. Therefore, it is only natural to try to avoid the tax burden. Management actions planned to minimize corporate tax payments through tax aggressiveness activities are common among companies throughout the world. This study aims to see the role of independent commissioners in moderating the effect of transfer pricing, capital intensity and profitability on tax aggressiveness. The population and sample in this study are manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2016-2018 period. The sampling method used was purposive sampling. The analysis tool used is panel data regression analysis. The results showed that 1). Capital intensity and profitability each have a positive effect on tax aggressiveness. 2). Transfer prices and independent commissioners are not subject to tax aggressiveness. 3). Independent commissioners can moderate weaken the influence of capital on tax aggressiveness. 4). Independent Commissioners as measured by the Total Board of Commissioners divided by the Independent Commissioners (KI) are unable to assess or weaken the relationship between transfer pricing profitability and tax aggressiveness.</p>

scholarly journals The role of intellectual capital as a mediation of relationship between audit committee and real earnings management

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1799-1804 ◽  
Author(s):  
Sri Layla Wahyu Istanti ◽  
Anis Chariri ◽  
Agung Juliarto
Keyword(s):  
Human Capital ◽  
Earnings Management ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Mediating Effect ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Management Actions ◽  
The Relationship

This study aims to examine the role of human capital, which is part of intellectual capital, as a mediator in the relationship between audit committee expertise and the number of audit committee meetings with real earnings management. This research is a quantitative study. The data source used is data from manufacturing companies in Indonesia. The sample selection technique used purposive sampling. The analysis technique uses path analysis. The results showed that the expertise of the audit committee had a significant effect on human capital, while the number of audit meetings had no effect on human capital. The results of this study also state that audit committee expertise, number of audit committee meetings and human capital performance have no effect on real earnings management actions. Furthermore, there is empirical evidence that shows that human capital has a mediating effect on the relationship between audit committee expertise and the number of audit committee meetings with real earnings management. The role of human capital in the relationship between the expertise of the audit committee and the number of audit committee meetings becomes originality, so it is the main contribution of research. The limitation of this research is that it only uses human capital as a mediating variable.

scholarly journals Earnings Management Through Deferred Taxes Recognized Under IAS 12: Evidence From Pakistan

2014 ◽  
Vol 3 (1) ◽  
pp. 1-19
Author(s):  
Abdul Rafay Abdul Rafay ◽  
Mobeen Ajmal
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Value Relevance ◽  
Relevant Information ◽  
Cash Flows ◽  
Deferred Taxes ◽  
Deferred Tax Assets ◽  
Operational Activities ◽  
Deferred Tax ◽  
Relevant Component

This study examines earnings management through deferred taxes calculated under the IAS 12 and its impact on firm valuation. The literature finds that book–tax nonconformity leads to better earning quality and a greater association between earnings and future expected cash flows. Given that Pakistan is a pioneering implementer of the International Financial Reporting Standards, our hypothesis is that the components of deferred tax disclosed under the IAS 12 provide value-relevant information to equity investors. We divide deferred tax components into three categories: those arising from (i) operational activities, (ii) investing activities, and (iii) financing activities. These are subdivided to ensure that no value-relevant component is aggregated with a nonvalue-relevant component, which might otherwise lead to an information slack. Our sample includes data on shariah-compliant companies listed on the Karachi Meezan Index (KMI-30). We find that deferred tax line items in firms’ balance sheets are reflected in market prices. Investors also tend to treat deferred tax line items (arising from operating, financing, and investing activities) differently. Furthermore, the value relevance is dissimilar for different components of deferred tax. Investors are wary of deferred tax assets and liabilities when pricing and are likely to penalize firms with a higher deferred tax position.

scholarly journals PENGARUH CORPORATE GOVERNANCE DAN DEFERRED TAX EXPENSE TERHADAP EARNINGS MANAGEMENT PADA PERUSAHAAN MANUFAKTUR DI INDONESIA

2017 ◽  
Vol 5 (1) ◽  
pp. 25
Author(s):  
Sri Suranta ◽  
Rendi Rendi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Sampling Method ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Deferred Tax ◽  
Tax Expense

This study aims to find out the effect of corporate governance and deferred tax expense toward earnings management in Indonesia. Corporate governance represented by board of commissioner, independent commissioner, institutional ownership, and female commissioner. Sample in this study consists of 100 manufacturing companies in 2013 and 2014. Sample is taken using the purposive sampling method. Regression results show that institutional ownership, and deferred tax expense are influencing the earnings management, while the board of commissioner, independent commissioner and female comissioner are not.   Keywords: corporate governance, deferred tax expense, earnings management

The Effect of Profitability and Financial Leverage on Cost of Debt Moderated Earnings Management

2021 ◽  
Vol 26 (1) ◽  
pp. 35
Author(s):  
Herman Ruslim, Renny Muspyta
Keyword(s):  
Earnings Management ◽  
Cost Of Debt ◽  
Manufacturing Companies ◽  
Financial Leverage ◽  
Publicly Traded ◽  
Return On Equity ◽  
Publicly Traded Companies ◽  
Negative Effect ◽  
The Cost

This study aims to determine the effect of profitability and Financial Leverage on the Cost of Debt, and the role of Earnings Management as a moderating variable. In this study, profitability is measured by the ratio of return on equity, financial leverage is measured by the proxy debt ratio, earnings management as measured by discretionary accruals, and cost of debt is measured by the ratio of interest expense divided by the average total debt. The population in this study are publicly traded companies listed on the IDX, and the sample used is manufacturing companies listed on the IDX for the 2016-2019 period. Based on the purposive sampling method, the samples obtained were 69 manufacturing companies and 276 observations. The results showed that profitability has a negative effect on the cost of debt, while financial leverage has no effect on the cost of debt, earnings management cannot weaken the negative effect of profitability on the cost of debt and earnings management cannot weaken the negative effect of financial leverage on the cost of debt.

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