Book-Tax Difference, Tax Planning, and Bonds Rating: The Evidence From Indonesia’s Listed Companies

Dahlia Sari

Dwi Martani


This study aims to examine the effect of the increase of BTD toward the bond ratings of firms and to investigate the impact of tax planning toward the increase of BTD in affecting bond ratings. Samples are taken from 61 companies that issued bonds and they obtained ranking from Pefindo. The data was processed by method of ordinal logit regression. The results show that the increase of BTD (positive changes in BTD) negatively affects the bond ratings of firms, i.e. the bond rating of firms decline. This study also proves the existence of tax planning to mitigate the effect of the increasing BTD toward the declining of bond ratings.

Dipresentasikan pada The 25th Asian-Pacific Conference on International Accounting Issues, Grand Hyatt, Nusa Dua – Bali, Indonesia, 10 – 13 November 2013. Book Tax Difference Tax Planning…