Empirical evidence on the impact of external monitoring on book–tax differences☆ |
Abstract:
This study investigates whether institutional ownership levels are associated with levels of and time-seriesvariability in book–tax differences (BTDs). Firm and year fixed-effectregression results suggest that institutional ownership is negatively associated with total, permanent, and temporary BTDs. This effect is driven primarily by permanent BTDs in the pre-SOX er but is consistently present for both permanent and temporary BTDs post-SOX. Further, this negative association is present regardless of firms' classification as “tax planners” and/or “earnings managers.” Finally, the results provide some evidence that stronger monitoring by the board and audit committee (i.e., a smaller and more independent board and a larger audit committee) is associated with lower permanent BTDs but is not consistently related with total or temporary BTDs. Overall, these findings are consistent with higher levels of institutional ownership equating to more effective monitoring of management, resulting in lower BTDs (in terms of both levels and time-series variability). |
| Keywords: |
Empirical evidence, impact ,external monitoring , book–tax differences☆ |
| Author(s): |
Jared A. Moore |
| Source: |
Advances in Accounting, incorporating Advances in International Accounting 28 (2012) 254–269 |
| Subject: |
حسابداری و حسابرسی |
| Category: |
مقاله مجله |
| Release Date: |
2012 |
| No of Pages: |
16 |
| Price(Tomans): |
0 |
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بر اساس شرایط و ضوابط ارسال مقاله در سایت مدیر، این مطلب توسط یکی از نویسندگان ارسال گردیده است. در صورت مشاهده هرگونه تخلف، با تکمیل فرم گزارش تخلف حقوق مؤلفین مراتب را جهت پیگیری اطلاع دهید.
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