ABSTRACT

Earnings management practices indicated occurred in the company since the onset of the conflict of interest
(the Agency theory) between the principal with the agent. This research aims to identify and test the
influence of tax planning, deferred tax assets, deferred tax liabilities and quality audit against earnings
management company. The data used in this study are derived from audited financial statements in the
transport sector sub services company listed on the Indonesia stock exchange period 2011-2015, obtained
from a population of 33 companies that will be taken as samples based on the specified qualifications.
Determination of samples is carried out using the method of purposive sampling. There were 9 companies
were analyzed using logistic regression method contained in the program SPSS 21.0 (Statistical Program
for Social Science). Results of research partially indicate that the variable tax planning and quality audit
has significant influence against earnings management company with significant values of 0.05 < 0.026
and 0.05 < 0.042. Deferred tax assets and deferred tax liabilities do not affect significantly to earnings
management companies because the value of significance is 0.05 > 0.075 and 0.05 < 0.718. When tested
simultaneously, the results showed a variable tax planning, deferred tax assets, deferred tax liabilities and
the quality of audit effect significantly to earnings management company with a value of significance of
0.05 < 0.001.

Key words: earnings management, tax planning, deferred tax assets, deferred tax liabilities and quality
audit