The Effect of Deferred Tax Expenses on Earning Management in Banking Companies

Abstract

This study aims to determine the effect of deferred tax expense on earnings management in banking companies. This study uses secondary data which is analyzed and obtained from financial reports or annual reports of companies listed on the Indonesia Stock Exchange. Methods of data analysis using linear regression analysis using SPSS software. The results showed that deferred tax expense has an effect on earnings management. If a deferred tax asset arises intentionally or at the desire of management, it can be estimated that the realization will be carried out in the planned period in order to increase the company's profits in that period.