Research On Association Between Changes In Deferred Tax And Management Of Corporate Earnings

2007 to 2009, China and even sudden changes in the global economic environment is three years, from prosperity to economic crisis, and then to the economic recovery from three years in terms of corporate governance, but also challenging for three years. Economic environment changes, but the country still has not changed the relevant legal system, such as three consecutive losses of listed companies to stop listing. Tax reform in 2007, deferred tax will be undergoing major changes, these factors will cause managers of the enterprise among the three years the performance of earnings management has become more typical.In general, if the degree of profit of listed companies during the year, then compared with the previous year, deferred tax credit have a greater change, that is, a significant increase in deferred income tax liabilities; If the listed company at a loss for the year, then with the previous year compared to the deferred tax debit will be major changes, that is, a substantial increase in deferred tax assets; highly profitable companies tend to smooth profits at a time when the deferred taxes will fall. And because the deferred tax surplus by adjusting the management for the enterprise relative with sporadic and an act of non-repetitive. Changes in deferred tax if the firm is too large, then the company's future earnings have not sustainable. Loss of listed companies the greater the change in deferred taxes, then the next year again, the smaller the possibility of loss; listed company to profitability the year compared with the previous year, the greater the change in deferred taxes, then the next the possibility of a greater loss of the year again. This paper investigated the changes in deferred tax of listed companies, through empirical analysis to verify the above assumptions, and study the 2008 and 2009 changes in deferred taxes, and for "in China's economic system or the economic environment the deferred tax could, as an indicator of earnings management, or whether the losses could become an indicator? deferred tax movements as indicators of corporate losses, the effect and manipulation of accruals compared to how it? "These issues do further analysis.This article listed companies in accordance with the non-recurring gains and losses net of return on net assets of listed companies will be divided into low-profit enterprises, high-profit-making enterprises and the loss-making enterprises. Were studied three types of earnings management and changes in deferred tax rate the relevance of the underlying assumptions made and to be verified. According to this idea, the author of this paper is divided into seven main chapters:The first chapter introduces the research background and this country the main frame structure, innovation and inadequate. The second chapter is at home and abroad about the motives and means of earnings management, tax and earnings management studies the intersection of these two have done a literature review. The third chapter is the theoretical support of this hypothesis, theoretical support for the research is divided into earnings management and deferred tax on two aspects of these theories proposed on the basis of the above assumptions. The fourth chapter is the data selection and model, the paper finally selected from a database of 806 CSMAR listed companies 07-09 years of data. The fifth chapter is part of the empirical test, also divided into on the 2008 and 2009 for changes in deferred tax analysis, this paper model the required variables descriptive statistics, correlation analysis of variables, how far Regression Analysis, Multicollinearity test and robustness testing. Chapter VI is the cashmere industry in 2008, the Bank's annual report made a case study, Bank of cashmere industry in a negative income tax expense in 2008, mainly through its tax incentives, inflated deferred income tax assets to pursue its commitment to escape before The agreement sent shares. Finally, conclusions of this study, compared with the policy recommendations.This study found that both the loss of company profit companies or high-profit-making enterprises, the earnings management, deferred tax will undergo corresponding changes. Common motives include the loss of their pre-big bath, motivation losses, profit motives and other smooth, and its principal means adopted to dispose of assets, government subsidies, and other operating income, and the reversal of impairment. The empirical results also show that changes in deferred tax as a listed company can really achieve profitability, an indicator of profit smoothing. This paper also investigated the loss of company profit companies or companies with high profits and a variety of changes in deferred tax motives, and the first to use indicators of changes in deferred tax, was found in the listed companies to avoid losses and to avoid withdrawal The role of such acts in the city than manipulation of accruals. Finally, for a variety of robustness tests show that the conclusions of this study are highly reliable.Before the deferred tax and earnings management studies are focused on the recognition of deferred tax and business relevance of earnings management, deferred taxes can as an indicator of earnings management, and so on. Changes in deferred tax for businesses whether as a corporate turnaround in the index, little research, this paper is to study for this area, which is where this innovation.Inadequacies of this article is:the limitations of the hand-collected data, this paper uses only 806 listed companies in the data, reports a negative rate of return on net assets of enterprises in 2009, a no, in 2009, only four, but 2008 excluding non-recurring gains and a negative rate of return on net assets of 52 enterprises, which may not be sufficient on behalf of all the characteristics of listed companies in loss, and this is a listed company is likely to gloss over the report results, which also shows there are a lot of listed companies in China's earnings management behavior. We can do just published a report for an analysis of data for the authenticity of the report itself is the CPA's responsibility to identify. In this article, coupled with the registered public accounting firm if the control variables, the effect should be more apparent. If we can put all the data included in the analysis sample companies, listed companies in a comprehensive study of deferred taxes associated with earnings management, the effect should also be better.In this paper, these findings raise several policy recommendations the following:1. Delisting of listed companies on the system should not only be concerned with its profit report, should be taken into account the deduction of the non-recurring gains and losses after the ROE, because less of the non-recurring net gain or loss is listed after the company's core business profitability reflected.2. Should focus on related party transactions, local government support and other conditions favorable earnings management for effective containment.3. Securities regulatory authorities should further improve the deferred income tax accounting and disclosure norms, the notes to the financial statements can also be full disclosure of deferred tax movements. Also, take full account of implementation of regulatory policy changes in the deferred income tax.