Deferred Tax Expense, Profitability, and Profit Management Practices at Financial Service Companies in Indonesia
- 10.2991/aicar-18.2019.49How to use a DOI?
- taxes; deferred tax expense; propitability; profit management
This research about earning management in financial services sector companies. The poor quality of banking can be indicated from the poor internal condition of the banking sector, the underperforming bank management, the low moral of its human resources, and the ineffective supervision done by Bank Indonesia. Those items are several causes of banks liquidation happening in Indonesia. Bank’s profitability is the ability of a bank in generating profit at a certain period. The higher the profitability of a bank, the greater profit earned by the bank. The higher profitability also means the better position, in terms of asset, of a bank. Like bank’s profitability, deferred tax expense affects profit management as well. The purpose of this study is to provide empirical evidence of the effect of deferred tax expense and profitability on profit management at financial service companies. The samples of this study are the annual reports of financial service companies which were listed on Indonesia Stock Exchange (IDX) in 2010-2015 and selected by using purposive sampling. Data were analyzed using panel data regression analysis. The result of this study shows that deferred tax expenses partially has a negative correlation with the profit management and profitability has no effect on profit management. In addition, deferred tax expense and profitability simultaneously influence profit management
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Merliyana AU - Enung Siti Saodah AU - Asep Saefurahman PY - 2019/02 DA - 2019/02 TI - Deferred Tax Expense, Profitability, and Profit Management Practices at Financial Service Companies in Indonesia BT - Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018) PB - Atlantis Press SP - 224 EP - 229 SN - 2352-5428 UR - https://doi.org/10.2991/aicar-18.2019.49 DO - 10.2991/aicar-18.2019.49 ID - 2019/02 ER -