THE EFFECT OF EARNING MANAGEMENT AND TAX AVOIDING ON COMPANY VALUE

Edisah Putra Nainggolan

Edisah Putra Nainggolan Faculty of Economics and Business, University of Muhammadiyah Sumatera Utara

Keywords: Earning Management, Tax Avoiding, Company Value

Abstract

This study aims to examine and analyze the effect of earnings management on firm value and tax avoidance on earnings management relationships with firm value on agricultural companies listed on the Indonesia Stock Exchange. This approach uses a quantitative approach, consisting of two independent variables namely earnings management, and tax
avoidance, and the dependent variable is the value of the company. The object of this research is agricultural companies listed on the Indonesia Stock Exchange (IDX) during the period
2013-2017. The sample used was 14 agricultural companies listed on the IDX. Testing the hypothesis in this study using multiple linear regression Based on the results showed that (1) earnings management affects the value of the company in agricultural companies on the IDX. (2) tax avoidance affects the value of the company in agricultural companies on the IDX.