The Effects of Book-Tax Differences on Analysts' Forecast Errors and Abnormal Stock Returns.

• Main Authors: Guei-Yu Lin, 林桂伃
• Other Authors: Mei-Juh Huang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/16681954382424546599

碩士 === 輔仁大學 === 會計學系碩士班 === 98 === This paper addresses the relationship among book-tax difference (BTD), cash forecast errors and abnormal stock returns, and examines whether financial analysts’ and investors can use the book-tax differences to make their forecasts of earnings or stock prices. The empirical results are summarized as follows. First, BTD is positive related to analysts’ forecast errors. That means the BTD caused by adjusting accounting discretionary accruals or differences between GAAP and tax regulations through earnings management or aggressive tax plan, contained the information of predicting future earnings. Once the analysts can’t capture the information then the forecast errors show up. Second, BTD is positive related to the abnormal stock returns. When the company is engaged in earnings management or aggressive tax plan, the BTD is getting larger and information asymmetry is more serious. If the investors can’t get the information when forming the predictions of stock prices, then abnormal stock returns will exist in the stock market. Further, the investors always take the professional analysts’ earnings forecasts into consideration, so this research controls the analysts’ forecast error effects, and the empirical result shows that the analysts’ forecast errors also have impacts on abnormal stock returns.