The Book-Tax Difference, Earnings Quality, and Stock Valuation for the Banking Industry

• Main Authors: Shin-Yi Liao, 廖心儀
• Other Authors: Huang-Der-Fen
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/39737235464341703549

碩士 === 國立東華大學 === 公司理財碩士學位學程 === 97 === This paper examines the effect of book-tax difference on earnings quality for banking industry. This paper uses absolute discretionary provisions and earnings persistence as proxies for earnings quality. The sample includes twenty-seven listed banks during 1996 to 2006. The empirical findings are as follows. First, there is a positive association between the large book-tax difference and the absolute discretionary provisions. Second, the positive (negative) discretionary provisions contributes to the large negative (positive) book-tax difference. Third, banks with large negative book-tax differences have more discretionary provisions and higher earnings persistence. Forth, banks with large negative book-tax difference, their accruals are less persistent than those with small book-tax difference. Final, the stock prices of banks with large positive book-tax differences are higher than others.