Research on the Effect on Tax Burden of Earning Management Based on Lipschitz Theory

DOI

10.2991/iccese-17.2017.175How to use a DOI?

Keywords

Earnings Management; Tax Burden; Accounting Error Correct; Book-tax Differences

Abstract

Based on the features of Chinese market and Chinese institution, this paper intends to study the relationship between earnings management and tax burden by using the account error correction data. As is revealed in the study, the fundamental goal of the earnings management in the listed companies is to allegedly inflate earnings. However, the majority of the companies won't pay the extra taxes and instead, they decrease tax reporting. Little tax restrictions have been attached to the accounting earnings, Therefore tax reduction may be attributed to the way rather than the goal of earnings management. The implication of the phenomena is that analysis on book-tax differences may be the useful tool for supervisors to investigate the earnings management behaviour, for investors and CPA to appraise the quality of accounting information, and for tax sections to supervise the tax report.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yunzhao Lu
PY  - 2017/05
DA  - 2017/05
TI  - Research on the Effect on Tax Burden of Earning Management Based on Lipschitz Theory
BT  - Proceedings of the 2017 International Conference on Culture, Education and Financial Development of Modern Society (ICCESE 2017)
PB  - Atlantis Press
SP  - 692
EP  - 696
SN  - 2352-5398
UR  - https://doi.org/10.2991/iccese-17.2017.175
DO  - 10.2991/iccese-17.2017.175
ID  - Lu2017/05
ER  -