The Empirical Research On The Book-tax Differences And Its Influential Factors

Book-tax differences demonstrate the relationship between the benefits of the nation and the enterprises. The empirical research on the book-tax differences not only provide some empirical data,but also give directions to the cooperation among supervising institutions.Publicly traded firms are subject to separate accounting rules for tax and financial reporting purpose. As a result, the amount of income reported under each set of rules differs. The paper first analyzes the book-tax difference theoretically, and then employs multiple linear regression method to analyze the institutional factors and accounting choice factors of the book-tax difference.The empirical evidences show that investment revenue, the depreciation of fixed assets and governmental subsidies are the most important institutional factors. Political cost and debt contract also have impact on book-tax difference.