The Effect of Net Profit Margin, Debt Equity Ratio, and Tax Planning on Earnings Management

This study aims to determine the effect of net profit margin, debt equity ratio, and tax planning on earnings management. The companies included in this study are non-financial sector companies listed on the Indonesia Stock Exchange (IDX) in 2019-2020. This research uses the multiple linear regression analysis method and uses the application of the Statistical Program for Social Science (SPSS). The population in this study was 45 companies from the observations of 100 companies in the non-financial sector listed on the Indonesia Stock Exchange (IDX) for the 2019-2020 period, and the sample data used were 38 companies using a purposive sampling technique. The hypothesis test consists of a simultaneous test (statistical test F), a partial test (statistical test T), and a multiple linear regression test. The results of this study indicate that the Net Profit Margin variable has a positive effect on earnings management, the Debt Equity Ratio variable has a positive effect on earnings management, and the Tax Planning variable has a positive effect on earnings management.