Main Article Content
Abstract
The purpose of this research is to analyze the effect of book-tax conformity (BTC) on earning persistence and accrual persistence. This study uses unbalanced panel data of manufacturing companies listed in Indonesia Stock Exchange during 2006-2011, which then analysed based on regression analysis. The results show that companies which applied BTC indicate lower earning persistence and accrual persistence than other companies. This suggests that the increase in BTC might reduce earnings.
Abstrak
Tujuan penelitian ini adalah untuk menganalisis pengaruh book-tax conformity (BTC) terhadap persistensi laba dan persistensi akrual. Penelitian ini menggunakan data panel tidak seimbang pada perusahaan manufaktur yang terdaftar pada Bursa Efek Indonesia tahun 2006-2011. Metode analisis data adalah regresi. Hasil menunjukkan bahwa perusahaan dengan BTC memiliki persistensi laba dan persistensi akrual yang lebih rendah dibandingkan perusahaan lain. Hal ini menunjukkan bahwa peningkatan BTC dapat mengurangi laba.
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Article Details
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References
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- Book-Tax Conformity, Earnings Persistence
- and the Association Between Earnings and Future
- Cash Flows. Journal of Accounting and
- Economics, 50(1), 111-125.
- Dechow, P. M. (1994). Accounting Earnings and Cash
- Flows as Measures of Firm Performance: The
- Role of Accounting Accruals. Journal of
- Accounting and Economics, 18 (1), 3-42.
- Dechow, P. M., Ge, W.& Schrand, C.(2010).
- Understanding Earnings Quality: A Review of
- the Proxies, Their Determinants and Their
- Consequences. Journal of Accounting and Economics,
- (2-3), 344-401.
- Dechow, P. M., Kothari, S., &Watts, R. L. (1998).
- The Relation Between Earnings and Cash
- Flows.Journal of Accounting & Economics,
- (2),133-168.
- Desai, M. A. (2005). The Degradation of Reported
- Corporate Profits. The Journal of Economic
- Perspectives, 19(4),171-192.
- Freeman, R. N, Ohlson, J., & Penman, S. H. (1982).
- Book Rate-of-Return and Prediction of
- Earnings Changes: An Empirical Investigation.
- Journal of Accounting Research, 20(2), 639-
- Hanlon, M.&Shevlin, T. (2005). Book-Tax Conformity
- for Corporate Income: an Introduction to
- the Issues.Tax Policy and the Economy,
- ,101-134.
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- Earnings, Accruals and Cash Flows When
- Firms Have Large Book-Tax Differences.The
- Accounting Review, 80(1), 137–166.
- Hanlon, M., Laplante, S.K.,& Shevlin, T. (2005).
- Evidence on The Possible Information Loss of
- Conforming Book Income and Taxable Income.
- Journal of Law and Economics, 48(2),407-
- Hanlon, M., Maydew, E. L., & Shevlin T. (2008). An
- Unintended Cencequence of Book-Tax Conformity:
- A Loss of Earnings Informativeness.
- Journal of Accounting & Economics, 46(2-
- ,294-311.
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- Keuangan. Jakarta: Ikatan Akuntan Indonesia.
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- (3),353-363
- Lev, B. (1983). Some Economic Determinants of
- Time-Series Properties of Earnings. Journal
- ofAccounting and Economics, 5, 31-48.
- Penman, S. H. (2001).Financial Statement Analysis
- and Security Valuation. Singapore: Mc Graw
- Hill.
- Plesko, G. (2006). Testimony Before the Committee on
- Finance, U.S. Senate (June 13).
- Shackelford, D. (2006). Testimony Before the Subcommittee
- on Select Revenue Measures of the
- House Committee on Ways and Means (May
- .
- Sloan, R. G. (1996). Do Stock Prices Fully Reflect
- Information in Accruals and Cash Flows About
- Future Earnings?The Accounting Review,
- (3), 289-315.
- Tang, T. Y. & Firth, M. (2012). Earnings Persistence
- and Stock Market Reactions to the Different
- Information in Book-Tax Differences: Evidence
- from China. The International Journal of
- Accounting, 47(3),369-397.
- Undang-Undang Nomor 36 Tahun 2008 tentang Perubahan
- Keempat atas Undang-Undang Nomor 7
- Tahun 1983 tentang Pajak Penghasilan.
- Weber, D. P. (2005). Book-Tax Differences, Analyst’
- Forecast Error and Stock Return. Working Paper.
- University of Colorado.
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- the Book-Tax Gap. The Tax Lawyer 59.
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- Management of Profit Firms and Loss Firms in
- Response to Tax Rate Reductions. Review of
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References
Atwood, T.J.,Drake, M. S.,& Myers, L. A. (2010).
Book-Tax Conformity, Earnings Persistence
and the Association Between Earnings and Future
Cash Flows. Journal of Accounting and
Economics, 50(1), 111-125.
Dechow, P. M. (1994). Accounting Earnings and Cash
Flows as Measures of Firm Performance: The
Role of Accounting Accruals. Journal of
Accounting and Economics, 18 (1), 3-42.
Dechow, P. M., Ge, W.& Schrand, C.(2010).
Understanding Earnings Quality: A Review of
the Proxies, Their Determinants and Their
Consequences. Journal of Accounting and Economics,
(2-3), 344-401.
Dechow, P. M., Kothari, S., &Watts, R. L. (1998).
The Relation Between Earnings and Cash
Flows.Journal of Accounting & Economics,
(2),133-168.
Desai, M. A. (2005). The Degradation of Reported
Corporate Profits. The Journal of Economic
Perspectives, 19(4),171-192.
Freeman, R. N, Ohlson, J., & Penman, S. H. (1982).
Book Rate-of-Return and Prediction of
Earnings Changes: An Empirical Investigation.
Journal of Accounting Research, 20(2), 639-
Hanlon, M.&Shevlin, T. (2005). Book-Tax Conformity
for Corporate Income: an Introduction to
the Issues.Tax Policy and the Economy,
,101-134.
Hanlon, M. (2005).The Persistence and Pricing of
Earnings, Accruals and Cash Flows When
Firms Have Large Book-Tax Differences.The
Accounting Review, 80(1), 137–166.
Hanlon, M., Laplante, S.K.,& Shevlin, T. (2005).
Evidence on The Possible Information Loss of
Conforming Book Income and Taxable Income.
Journal of Law and Economics, 48(2),407-
Hanlon, M., Maydew, E. L., & Shevlin T. (2008). An
Unintended Cencequence of Book-Tax Conformity:
A Loss of Earnings Informativeness.
Journal of Accounting & Economics, 46(2-
,294-311.
Ikatan Akuntan Indonesia.(2012). Standar Akuntansi
Keuangan. Jakarta: Ikatan Akuntan Indonesia.
Jakarta Stock Industrial Classification Index. (2012).
Jonas, G. J. & Blanchet, J. (2000). Assessing Quality
of Financial Reporting. Accounting Horizons,
(3),353-363
Lev, B. (1983). Some Economic Determinants of
Time-Series Properties of Earnings. Journal
ofAccounting and Economics, 5, 31-48.
Penman, S. H. (2001).Financial Statement Analysis
and Security Valuation. Singapore: Mc Graw
Hill.
Plesko, G. (2006). Testimony Before the Committee on
Finance, U.S. Senate (June 13).
Shackelford, D. (2006). Testimony Before the Subcommittee
on Select Revenue Measures of the
House Committee on Ways and Means (May
.
Sloan, R. G. (1996). Do Stock Prices Fully Reflect
Information in Accruals and Cash Flows About
Future Earnings?The Accounting Review,
(3), 289-315.
Tang, T. Y. & Firth, M. (2012). Earnings Persistence
and Stock Market Reactions to the Different
Information in Book-Tax Differences: Evidence
from China. The International Journal of
Accounting, 47(3),369-397.
Undang-Undang Nomor 36 Tahun 2008 tentang Perubahan
Keempat atas Undang-Undang Nomor 7
Tahun 1983 tentang Pajak Penghasilan.
Weber, D. P. (2005). Book-Tax Differences, Analyst’
Forecast Error and Stock Return. Working Paper.
University of Colorado.
Whitaker, C. (2006). How to Build a Bridge: Eliminating
the Book-Tax Gap. The Tax Lawyer 59.
www.finance.yahoo.com
www.idx.co.id
Yin, Q. J. & Cheng, C. S. A. (2004). Earnings
Management of Profit Firms and Loss Firms in
Response to Tax Rate Reductions. Review of
Accounting & Finance, 3, pp. 67-93.