ACCOUNTING & FINANCE CORNER
Saturday January 25th 2020

The Effect of Large Positive Abnormal Book-Tax Differences on Earnings Persistence

Nurul Aisyah Rachmawati

Dwi Martani

Abstract

 

Prior studies document that book-tax differences (BTD) reflect divergent eporting rules for book and tax purposes, and contain information about earnings management and tax planning. Our sample will be focused on large positive BTD (the quintile of largest positive BTD). According to Tang and Firth (2012), we separate BTD into large positive normal BTD (LPNBTD) and large positive abnormal BTD (LPABTD). LPNBTD are more likely driven by regulatory differences between accounting and tax rules. LPABTD are more likely driven by earnings and tax management activities. We investigate the effect of large positive abnormal book-tax differences (LPABTD) on earnings and accruals persistence. We predict and find that firms with LPBTD likely arising from earnings management and tax management activities exhibit lower earnings and accruals persistence than do other firms with large positive normal book-tax differences (LPNBTD).

Dipresentasikan pada The 25th Asian-Pacific Conference on International Accounting Issues, Grand Hyatt, Nusa Dua – Bali, Indonesia, 10 – 13 November 2013. The Effect of Large…

Latest Topics

UMKM DI ERA 4.0

Di era digital 4.0 seluruh aktivitas akan terpengaruh termasuk juga bisnis UMKM. Era digital 4.0 pada satu sisi adalah [Read More]

Overview PSAK

Berikut materi overview PSAK. Untuk contoh soal dapat mengambil dari materi di post-post sebelumnya.   SOAL CP_SAK [Read More]

Instrumen Keuangan

Berikut materi terkait instrumen keuangan PSAK 60 pengungkapan instrumen keuangan 20122017 [Read More]

SD Akuntansi Kontemporer

Matakuliah mengajarkan topik akuntansi terkini dari perspektif penelitian. Penelitian Pajak 22112019 Contoh Riset pajak [Read More]

Belajar PSAK baru

Berkali mengajar PSAK 71 72 73 semakin merasa tidak paham dan merasa tidak punya kemampuang untuk membaca. Sekali [Read More]

Popular Topics

Dokumen Publikasi puisi

Pages

Insider

Archives