The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in Korea
This paper investigates the role of temporary Book-Tax Differences(BTD) as a proxy for earnings quality using various measures to provide alternative indicators of earnings quality. Hence, it combines most frequently used hypotheses with some modifications. First, we partition total temporary BTD in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
People & Global Business Association (P&GBA)
2019-09-01
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| Series: | Global Business and Finance Review |
| Subjects: | |
| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20191013210808-1F984.pdf |
| _version_ | 1798022787018784768 |
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| author | Bobur Abdullaev Jeong hwan Park |
| author_facet | Bobur Abdullaev Jeong hwan Park |
| author_sort | Bobur Abdullaev |
| collection | DOAJ |
| description | This paper investigates the role of temporary Book-Tax Differences(BTD) as a proxy for earnings quality using various measures to provide alternative indicators of earnings quality. Hence, it combines most frequently used hypotheses with some modifications. First, we partition total temporary BTD into its components such as large positive, large negative and small temporary BTDs. Then, we analyze the association between large temporary BTDs with discretionary accruals. Following that, the persistence of earnings will be examined when there are large positive and large negative BTDs. Lastly, the association between large temporary BTDs and future earnings will be studied to find the impact of large temporary BTDs on future earnings. Overall, the evidence suggests that temporary BTD can be a good choice for investors to analyze a particular companys earnings quality. |
| first_indexed | 2024-04-11T17:35:42Z |
| format | Article |
| id | doaj.art-84c8add331bc4b9bb14ad4b1681f0f95 |
| institution | Directory Open Access Journal |
| issn | 1088-6931 2384-1648 |
| language | English |
| last_indexed | 2024-04-11T17:35:42Z |
| publishDate | 2019-09-01 |
| publisher | People & Global Business Association (P&GBA) |
| record_format | Article |
| series | Global Business and Finance Review |
| spelling | doaj.art-84c8add331bc4b9bb14ad4b1681f0f952022-12-22T04:11:37ZengPeople & Global Business Association (P&GBA)Global Business and Finance Review1088-69312384-16482019-09-01243142810.17549/gbfr.2019.24.3.14The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in KoreaBobur Abdullaev0Jeong hwan Park1Pusan National University, Republic of KoreaBusan University of Foreign Studies, Republic of KoreaThis paper investigates the role of temporary Book-Tax Differences(BTD) as a proxy for earnings quality using various measures to provide alternative indicators of earnings quality. Hence, it combines most frequently used hypotheses with some modifications. First, we partition total temporary BTD into its components such as large positive, large negative and small temporary BTDs. Then, we analyze the association between large temporary BTDs with discretionary accruals. Following that, the persistence of earnings will be examined when there are large positive and large negative BTDs. Lastly, the association between large temporary BTDs and future earnings will be studied to find the impact of large temporary BTDs on future earnings. Overall, the evidence suggests that temporary BTD can be a good choice for investors to analyze a particular companys earnings quality.http://www.gbfrjournal.org/pds/journal/thesis/20191013210808-1F984.pdfbook tax differencetemporary book tax differencesdiscretionary accrualsearnings persistencefuture earnings change |
| spellingShingle | Bobur Abdullaev Jeong hwan Park The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in Korea Global Business and Finance Review book tax difference temporary book tax differences discretionary accruals earnings persistence future earnings change |
| title | The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in Korea |
| title_full | The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in Korea |
| title_fullStr | The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in Korea |
| title_full_unstemmed | The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in Korea |
| title_short | The Effect of Book-Tax Difference on Earnings Quality: Empirical Evidence from KOSPI companies in Korea |
| title_sort | effect of book tax difference on earnings quality empirical evidence from kospi companies in korea |
| topic | book tax difference temporary book tax differences discretionary accruals earnings persistence future earnings change |
| url | http://www.gbfrjournal.org/pds/journal/thesis/20191013210808-1F984.pdf |
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