Analysis Of Factors Affecting Earnings Management Of State-Owned Enterprises (Bumn) In 2018-2021 With Institutional Ownership As A Moderating Variable

Abstract

This study aims to obtain empirical evidence that tax planning, deferred tax expense, free cash flow, and earning power moderated by institutional ownership can affect earnings management practices. This research was conducted on 16 state-owned enterprises listed on the Indonesia Stock Exchange in the 2018-2021 period. Earnings Management was proxied by profit distribution. This study concludes that the interaction between tax planning, deferred tax expense, and free cash flow weakens earnings management practices, while earning power strengthens earnings management practices. Then the results of the interaction of earning power and institutional ownership can weaken earnings management practices. Meanwhile, tax planning, deferred tax expense, and free cash flow that interact with institutional ownership strengthen earnings management.