This study aims to test empirically book-tax conformity strengthens the negative effect of tax avoidance on earnings persistence. Book-tax conformity denotes a relationship between accounting standards and tax rule in a country. Tax avoidance is measured using abnormal book-tax difference. The data used samples of listed firms in six Asian countries from 2001 through 2014, with an unbalanced panel of 8,207 firms-years, analyzed using generalized method of moments approach. The results showed that book-tax conformity increases the earning persistence on the effect of tax avoidance measures on earnings persistence.
|Journal||PSYCHOLOGY AND EDUCATION JOURNAL|
|Publication status||Published - 2020|