Gayatri Rininta Permatasari dan Dwi Martani
Abstract
This study is aimed to analyze the effect of earnings management and tax planning practices toward earning informativiveness. Earning management and tax planning are inseparable as well as book income and taxable income. Therefore, earning management may not be seen as a separate item from tax planning. earning management practice can affect taxable income as well as book income, so does tax planning. This study evidences that earning management and tax planning practices decrease earning informativeness. Meanwhile, both earning management and taxable income do not affect taxable income. Earning management and tax planning also do not affect adjusted return of companies’ stocks. Those evidences imply that not all of the financial statement users are benefited by the information content of financial statement.
Keyword: Earnings Management, tax planning, Book Income, Taxable Income, earning Informativeness, stock return
Dipresentasikan pada The 3rd International Conference on Business and Economic Research (3rd ICBER 2012), Golden Flower Hotel – Bandung, 12 – 13 Maret 2012, ISBN 978-967-5705-05-2. Penyelenggara: Conference Master Resources. Effects of Earning Management…