A Study On The Impact Of Earnings Management On Income Tax Costs Of Listed Companies

In recent years,earnings management has always been a hot topic in the field of accounting research,the existing literature is mainly focused on the theory of earnings management,methods,models,costs and so on.The change in income tax costs caused by earnings management mainly focuses on the impact of accrued earnings management on income tax costs through the Jones model.Few scholars have talked about how specific accrual earnings management and specific real earnings management affect the cost of corporate income tax.So the research needs to be in-depth.Based on the background of the reform of the " The Change from Business Tax to Value-Added Tax" policy,this paper makes reference to the domestic and foreign research literature,and analyzes the accrual earnings management and the real earnings management.Wedivide accrual earnings management into four categories: enterprise investment income,asset impairment provision,depreciation of fixed assets,and amortization of intangible assets,the real earnings management is divided into the abnormal operating cash flow,abnormal production costs and abnormal discretionary costs.This paper constructs the influence model of accrual earnings management and real earnings management on income tax cost,to verify the "BTV" industry and non-"BTV" the industry of these specific earnings management on the impact of changes in income tax costs.In order to study the above problems,this paper chooses the industry data of transportation industry and seven modern service industries in 2008-2011 and 2013-2015.In order to compare and verify the effect of the policy of " BTV ",this paper chooses the data ofnon "BTV" business enterprises such as livestock,publishing,wholesale and textile,as a control group.In this paper,we use the Jones model of performance matching to measure accrued earnings management and Roychowdhury's real earnings management model,These variables include the firm size,profitability,financial leverage,company growth,the size of the board,the turnover ratio,the asset turnover ratio,the ratio of the independent directors,the type of the firm,and so on.Then,through multivariate regression analysis,we can verify how these earnings management methods affect the income tax cost.Research indicates:(1)Accrual earnings management within the investment income,real earnings management,real earnings management of the cost of manipulation and cost manipulation of the "increase by" industry and non-"increase" industry enterprises income tax costs different effects;(2)Accrual earnings management and real earnings management means within the sales manipulation of this surplus means the same effect on the impact of income tax costs;(3)Asset depreciation reserve,depreciation of fixed assets and amortization of intangible assets of these three specific accrual earnings management of the "increase by" industry and non-"increase" industry enterprises income tax cost effect is not significant.This paper deepens the study of the impact of accrual earnings management and real earnings management on the cost of income tax,and also provides policy recommendations for enterprises to adjust the tax burden costs by implementing earnings management.