The Influence of Book-Tax Differences on Earnings Informativeness

• Main Authors: JIANG, PIN-YAO, 江品瑤
• Other Authors: CHEN, CHING-LUNG
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/a85v4v

碩士 === 國立雲林科技大學 === 會計系 === 105 === Prior studies suggest that book-tax differences (BTD) contain both information about the divergent reporting rules for book and tax purpose and information about earnings and a firm’s aggressive tax management. Based on the model suggested by Collins, Kothari, Shanken and Sloan (1994), this study firstly examines whether book-tax differences (BTD) have an effect on earnings informativeness. Secondly, the present study follows Tang and Firth’s (2011; 2012) model and divides the BTDs into normal book-tax differences (NBTDs) and abnormal book-tax differences (ABTDs), then reexamines the empirical regressions. The empirical result shows that book-tax differences (BTD) can improve the informativeness of both current and future earnings. Further analysis reveals that the improved earnings informativeness is associated with the normal book-tax differences (NBTDs). This study demonstrates diagnostic checks and evidences the results are robust to the various specifications.