A Comparative Analysis of the Effect of Tax Planning, Profitability, and Leverage on Earnings Management in Financial Sector Companies Listed on the Indonesia Stock Exchange and Bursa Malaysia during 2020–2024

Feby Fitriani Yolanda Siagian; Iskandar  Muda; Rina Br.  Bukit

doi:10.55927/crypto.v5i1.16725

Authors

Feby Fitriani Yolanda Siagian University of North Sumatera
Iskandar Muda University of North Sumatera
Rina Br. Bukit University of North Sumatera

DOI:

https://doi.org/10.55927/crypto.v5i1.16725

Keywords:

Tax Planning, Profitability, Leverage, Earnings Management, Financial Sector.

Abstract

This study aims to examine the effects of tax planning, profitability, and leverage on earnings management in financial sector companies listed on the Indonesia Stock Exchange and Bursa Malaysia during 2020–2024. The sample was selected using a purposive sampling technique, resulting in 63 companies with a total of 316 firm-year observations. Panel data regression analysis was conducted using EViews software, preceded by stationarity tests, cointegration tests, and classical assumption tests. The findings reveal that tax planning has a negative and significant effect on earnings management. Profitability does not have a significant impact on earnings management. Meanwhile, leverage has a positive and significant effect on earnings management. These results suggest that tax planning strategies and debt utilization are important determinants of earnings management practices among financial sector companies in Indonesia and Malaysia

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