Normal, Abnormal Book-Tax Differences And Accounting Conservatism
The present paper investigates the effect of book-tax differences on the accounting conservatism (as a proxy for financial reporting quality). The major objective of this study was to examine the extent to which regulatory and opportunistic information in book- tax diff...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management (AAM)
2017
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| Subjects: | |
| Online Access: | http://eprints.usm.my/37199/ http://eprints.usm.my/37199/1/aamjaf13012017_5.pdf |
| _version_ | 1848878125902987264 |
|---|---|
| author | Koubaa, Rakia Riguen Jarboui, Anis |
| author_facet | Koubaa, Rakia Riguen Jarboui, Anis |
| author_sort | Koubaa, Rakia Riguen |
| building | USM Institutional Repository |
| collection | Online Access |
| description | The present paper investigates the effect of book-tax differences on the accounting
conservatism (as a proxy for financial reporting quality). The major objective of this study
was to examine the extent to which regulatory and opportunistic information in book-
tax differences
influence accounting conservatism. We also aim to examine if book-tax
differences are a signal of “bad news” for investors. Using publicly available financial
statements from 2005 to 2012 for 28 Tunisian listed firms
on the Tunis Stock Exchange
and operating in the industrial and commercial sectors, we use a current measure for
accounting conservatism and documents that observation with large book-tax differences
are associated with low levels of accounting conservatism. Also, we find that firms with
abnormal book-tax differences and normal book-tax differences exhibit less accounting
conservatism. Overall, the results suggest that the total and differing components of book-
tax differences have differential implications on accounting conservatism. Our research is
valuable for researchers, shareholders as well as regulators. For researchers, it appears to
an innovative area for future research. For shareholders, it shows the role of the information
transmitted by book-tax differences into the analysis of earnings quality published by firms.
This study also helps regulators to improve accounting rules and tax rule. |
| first_indexed | 2025-11-15T17:26:22Z |
| format | Article |
| id | usm-37199 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:26:22Z |
| publishDate | 2017 |
| publisher | Asian Academy of Management (AAM) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-371992017-10-19T02:00:23Z http://eprints.usm.my/37199/ Normal, Abnormal Book-Tax Differences And Accounting Conservatism Koubaa, Rakia Riguen Jarboui, Anis HD28-70 Management. Industrial Management The present paper investigates the effect of book-tax differences on the accounting conservatism (as a proxy for financial reporting quality). The major objective of this study was to examine the extent to which regulatory and opportunistic information in book- tax differences influence accounting conservatism. We also aim to examine if book-tax differences are a signal of “bad news” for investors. Using publicly available financial statements from 2005 to 2012 for 28 Tunisian listed firms on the Tunis Stock Exchange and operating in the industrial and commercial sectors, we use a current measure for accounting conservatism and documents that observation with large book-tax differences are associated with low levels of accounting conservatism. Also, we find that firms with abnormal book-tax differences and normal book-tax differences exhibit less accounting conservatism. Overall, the results suggest that the total and differing components of book- tax differences have differential implications on accounting conservatism. Our research is valuable for researchers, shareholders as well as regulators. For researchers, it appears to an innovative area for future research. For shareholders, it shows the role of the information transmitted by book-tax differences into the analysis of earnings quality published by firms. This study also helps regulators to improve accounting rules and tax rule. Asian Academy of Management (AAM) 2017 Article PeerReviewed application/pdf en http://eprints.usm.my/37199/1/aamjaf13012017_5.pdf Koubaa, Rakia Riguen and Jarboui, Anis (2017) Normal, Abnormal Book-Tax Differences And Accounting Conservatism. Asian Academy of Management Journal of Accounting and Finance, 13 (1). pp. 1-30. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/aamjaf13012017/aamjaf13012017_5.pdf |
| spellingShingle | HD28-70 Management. Industrial Management Koubaa, Rakia Riguen Jarboui, Anis Normal, Abnormal Book-Tax Differences And Accounting Conservatism |
| title | Normal, Abnormal Book-Tax Differences And
Accounting Conservatism |
| title_full | Normal, Abnormal Book-Tax Differences And
Accounting Conservatism |
| title_fullStr | Normal, Abnormal Book-Tax Differences And
Accounting Conservatism |
| title_full_unstemmed | Normal, Abnormal Book-Tax Differences And
Accounting Conservatism |
| title_short | Normal, Abnormal Book-Tax Differences And
Accounting Conservatism |
| title_sort | normal, abnormal book-tax differences and
accounting conservatism |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/37199/ http://eprints.usm.my/37199/ http://eprints.usm.my/37199/1/aamjaf13012017_5.pdf |