Dr. Dwi Martani

Universitas Indonesia – Fakultas Ekonomi dan Bisnis – Ilmu Akuntansi

Amy Fontanella

Politeknik Negeri Padang

Dwi Martani

Universitas Indonesia


This paperinvestigates the association between firm level characteristics (i.e size, profitability, earnings quality, liquidity, leverage) and Book Tax Difference (BTD). We predict that larger, higher profitability, lower earnings quality, higher leverage and lower liquidity firms will have larger BTD. Based on 424 firm-years publicly-listed Indonesianfirmsover the 2009-2011, we find that largerand higher profitability firms will have a larger BTD. This finding is consistent with political power of large corporations. Moreover, we find that Firms with low earnings quality will have a large BTD, consistent with the idea that taxable income contains information about earnings quality and earnings management incentives. However, we find no association between leverage and liquidity irrespective of variability of BTD. This finding contributes to the literature by providing empirical evidence on the association between firm level characteristics and variability of Book Tax Differences. This finding can assist tax authorities in conducting tax audits through providing empirical evidence about firm level characteristics which tends to have large BTD.

Keywords: Book tax difference, firm-level characteristics, size, profitability, earnings quality, liquidity and leverage.

Dipresentasikan pada Simposium Nasional Akuntansi (SNA) XVII “Peranan Akuntan dalam Mewujudkan Pembangunan Berkelanjutan Melalui Pelaporan Terintegrasi”, Nusa Tenggara Barat, 24 – 27 September 2014, penyelenggara: Fakultas Ekonomi Universitas Mataram dan IAI-KAPd. Pengaruh Karakteristik Perusahaan…