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Der Zusammenhang zwischen „book-tax differences“ und Bilanzpolitik zum Erreichen eines positiven Jahresergebnisses

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  • Frey, Lisa
  • Möller, Manuela

Abstract

Existing literature expresses severe criticism concerning the use of discretionary accruals tomeasure earnings management. In this context, this study shows that book-tax differencesare more related to earnings management to avoid losses than discretionary accruals. Additionally,it can be demonstrated that the information content of book-tax differences canprimarily be ascribed to permanent differences given in the reconciliation used by listedGerman enterprises to avoid losses. Therefore, this study allows us to draw inferencesabout the primary source of earnings management behavior to show positive net incomeby listed German enterprises. Moreover, further analyses preclude that tax avoidance leadsto these positions in the reconciliation, which are positively correlated with loss-avoidance. This paper provides an avenue for further research in the earnings management literature.

Suggested Citation

  • Frey, Lisa & Möller, Manuela, 2015. "Der Zusammenhang zwischen „book-tax differences“ und Bilanzpolitik zum Erreichen eines positiven Jahresergebnisses," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 69(4), pages 467-500.
    • Handle: RePEc:nms:untern:10.5771/0042-059x-2015-4-467
    DOI: 10.5771/0042-059X-2015-4-467
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