Research Article
The Relationship between Earnings Manipulation and Tax Avoidance under the Different Book-Tax Difference
@INPROCEEDINGS{10.4108/eai.17-6-2022.2322731, author={Ming Pang and Mengzhen Zhao}, title={The Relationship between Earnings Manipulation and Tax Avoidance under the Different Book-Tax Difference}, proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China}, publisher={EAI}, proceedings_a={ICIDC}, year={2022}, month={10}, keywords={book-tax difference earnings manipulation tax avoidance effect strategic relationship}, doi={10.4108/eai.17-6-2022.2322731} }- Ming Pang
Mengzhen Zhao
Year: 2022
The Relationship between Earnings Manipulation and Tax Avoidance under the Different Book-Tax Difference
ICIDC
EAI
DOI: 10.4108/eai.17-6-2022.2322731
Abstract
It is inevitable for state-owned enterprises to manipulate profits or avoid taxes in order to maximize their interests. How do managers make strategic choices in different situations? This paper selects the sample data of A-share listed State-Owned SMEs (small and medium-sized enterprises) from 2015 to 2020, uses quantile regression method, and analyses the relationship between earnings manipulation and tax avoidance of State-Owned enterprises under different book-tax difference under the new government accounting standards. The results show that there is a significant positive correlation between the two, which may be strategic complementarity. In the lower quartile of the book-tax difference, the two are significantly negatively correlated and may be strategically substituted. It verifies the impact of book-tax difference on enterprise behaviours, and provides path reference for small and medium-sized state-owned enterprises to choose different ways to complete financial or tax reporting goals.