The Effect of Book-Tax Difference and Profit Management on Profit Growth in Manufacturing Companies Listed on the Indonesia Stock Exchange

Abstract

Industrial development in Indonesia makes every existing company compete to advance the company. Every company has a main goal, namely to obtain and increase company profits every year. This research design uses a quantitative descriptive approach, aiming to determine the relationship between two or more variables (Winarno 2013: 67). This research discusses the Effect of Book-Tax Difference and Earnings Management on Profit Growth in Manufacturing Companies Listed on the Indonesia Stock Exchange. Based on the results of hypothesis testing for the Book-Tax Difference (X1) variable, it is known that the tcount is 2.802718 with a significance level of 0.0255. This shows that tcount is greater than ttable (2.802718 > 1.671) with a significance value (0.0255 <0.05). So it can be concluded that the Book-Tax Difference (X1) has a significant positive effect on Profit Growth (Y).