Research on the Correlation between Book-Tax Difference and Earnings Management

DOI

10.2991/icetem-15.2015.5How to use a DOI?

Keywords

Book-Tax Differences, accounting profit, income tax, earnings management

Abstract

Book-tax differences of listed companies presented an expanding trend since the implement of the new accounting standards and the earnings management of the management layers may have influence on the fluctuation of book-tax difference. This essay got the abnormal book-taxable income difference by using regression analysis and replaced earning management with the combination of total accruals and discernable accruals to construct an estimation model for the correlation between book-tax difference and earnings management. Considering the effects earnings management had on the expanding trend of abnormal book-taxable income difference, this research took the financial data of China’s listed companies in 2009 to 2013 as the original data, and the results revealed that the book-tax differences of China’s listed companies were expanding and there was positive correlation between them and earnings management. Tax avoidance was one important element influencing book-tax income differences.

Copyright

© 2015, 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  - Yin-Hua Liao
AU  - Qian-Ru Fu
PY  - 2015/03
DA  - 2015/03
TI  - Research on the Correlation between Book-Tax Difference and Earnings Management
BT  - Proceedings of the 2015 International Conference on Education Technology and Economic Management
PB  - Atlantis Press
SP  - 27
EP  - 32
SN  - 2352-5398
UR  - https://doi.org/10.2991/icetem-15.2015.5
DO  - 10.2991/icetem-15.2015.5
ID  - Liao2015/03
ER  -