The Effect on Tax-fee Burden of Earnings Management--Analysis on the Accounting Restatement Data

摘要

Based on the features of Chinese market and Chinese institution, this paper intends to study the relationship between earnings management and tax burden by using the account error correction data. As is revealed in the study, the fundamental goal of the earnings management in the listed companies is to allegedly inflate earnings. However, the majority of the companies won't pay the extra taxes and instead, they decrease tax reporting. Little tax restrictions have been attached to the accounting earnings, Therefore tax reduction may be attributed to the way rather than the goal of earnings management. The implication of the phenomena is that analysis on book-tax differences may be the useful tool for supervisors to investigate the earnings management behavior, for investors and CPA to appraise the quality of accounting information, and for tax sections to supervise the tax report.