Study On The Influence Of Operating Tax Difference On Earnings Persistence

With the continuous development of the capital market,investors pay more attention to the quality of accounting information and the reliability of return,the important carrier of the quality of accounting information is the accounting surplus.Earnings persistence,as one of the important characteristics of accounting earnings,is the investors’attention.Compared with accounting income,taxable income is not easily manipulated by people.A large number of studies show that there is a difference between accounting income and taxable income.This can reflect whether the enterprise has carried on the earnings management behavior.Tax differentials,a non-financial indicator,are given at a certain level.The degree has the independence,thus has the advantage over the enterprise internal financial index.On the basis of reading a great deal of predecessors’achievements,this paper studies the persistence of earnings from the perspective of tax difference,and discusses the main factors that affect the tax difference by combining theoretical analysis with empirical test.Research has shown that there are three factors that lead to tax difference,which are institutional factor,earnings management and tax avoidance behavior.However,whether the tax difference from earnings management has a more significant impact on earnings persistence has not yet formed a unified conclusion.Based on this,this paper collects the factors that influence the difference of tax,obtains the index of the difference of tax by empirical method,and then comes to the conclusion.The measurement model and data of the operational tax difference as well as the sample of the institutional tax difference are used to further study the influence of the tax difference from different sources on the earnings persistence,in order to find out whether the operational tax difference is the main factor that affects the earnings persistence.On this basis,the paper further studies whether the earnings persistence of the tax difference from earnings management is lower than the earnings persistence of the benchmark company,which is obtained from the earnings manipulation of the companies and the benchmark companies.The results show that there is a negative correlation between the difference of tax and the persistence of surplus.Compared with the difference of total tax,the difference of operating tax has a more significant negative effect on the persistence of surplus,which indicates that there is a negative correlation between the difference of tax and the persistence of surplus.Further research verified that the earnings sustainability level of the companies with earnings management was 20.50%lower than that of the benchmark company,and that the persistence level of the accrual earnings of the companies with earnings management was lower than that of the benchmark company of 27.50%.Companies with operating tax differentials are less persistent than the average company.The study of this paper enriches the perspective of tax difference and provides a new perspective for investors to evaluate the value of enterprises.