The Effect of Reducing Corporate Income Tax Rates and Non-Tax Incentives on Profit Management in Automotive Sub Sector Companies Lists in The Indonesia Stock Exchange

Putri, Nengah Novi Widiami and Sukasih, Ni Ketut and Sudiadnyani, I Gusti Agung Oka (2022) The Effect of Reducing Corporate Income Tax Rates and Non-Tax Incentives on Profit Management in Automotive Sub Sector Companies Lists in The Indonesia Stock Exchange. Repositori Politeknik Negeri Bali.

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Abstract

The Covid-19 outbreak has had a major impact on the automotive sector in Indonesia. There was a decrease in sales of 48.8 percent from 2019 to 2020 or as many as 532,027 units, which resulted in a decrease in profits for automotive sector companies in Indonesia. The decline in profits that occurred had an impact on earnings management by the company to retain investors who invested in the company. The reduction in tax rates is one of the efforts made by the management to carry out earnings management. In addition, the factors that influence the occurrence of management are non-tax incentives of the company consisting of earning pressure, debt level, company size and managerial ownership. This research uses literature study and documentation techniques with research instruments in the form of annual financial reports to collect data. The types of data in this study include quantitative data types with purposive sampling data collection methods, in order to obtain 21 financial statement data for 3 years. The data analysis technique used is multiple linear regression analysis using the IBM SPSS 26 application. The study obtained the results of a reduction in tax rates and non-tax incentives partially and simultaneously significant effect on earnings management. Through the research conducted, it is hoped that it can become additional literature regarding the factors that influence the occurrence of earnings management.

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