The Influence of Tax Planning, Company Size, and Cash Holding on Earnings Management in the Infrastructure, Utilities and Transportation Sectors

ABSTRACT : Earnings management is management’s effort to intervene in or influence the information infinancial reports with the aim of tricking stakeholders who want to know the company’s performance andcondition. Such action is carried out by selecting certain accounting policies, increasing or decreasing profitsas desired. This study aims to determine the effect of tax planning, company size, and cash holding on earningsmanagement. This research was conducted on infrastructure, utility and transportation companies listed on theIndonesia Stock Exchange in 2016-2019. The number of samples used is 27 companies with the number ofobservations of 108 financial reports. The method of determining the research sample is purposive samplingtechnique. The data analysis technique was performed using multiple linear regression. The results show thattax planning has a significant negative effect meanwhile company size and cash holding have a significantpositive effect.

Keywords -earning management, infrastructure, utilities, transportation