An Empirical Study On The Relationship Between Deferred Income Tax Information And Enterprise Value

With the rapid development of economic globalization, the international convergence of accounting standards is the trend of the world in order to make the accounting information more comparable. In 2006, China promulgated the "accounting standards for business enterprises", one on the income tax accounting provisions from January 2007 1, all listed companies adopt balance sheet debt method to confirm the deferred income tax assets and deferred income tax liabilities. This shows that the accounting treatment of income tax in our country has entered a new stage. There is a correlation between the deferred income tax information and the enterprise value, especially in recent years. Based on the residual income valuation model, this paper studies and analyzes the relationship between deferred income tax assets and deferred income tax liabilities and enterprise value.This paper is divided into five chapters to study the relationship between deferred income tax and enterprise value. The first part of the article mainly analyzes the research background, the significance of the research, the main content of the research, the research methods and the innovation of this paper. The second part is mainly from the two aspects of the deferred income tax related to the value of the study, summed up the results of previous studies and a brief review. Then the third part of the article is related to the definition of concepts and theoretical analysis, including the basic theoretical analysis of income tax accounting, the basic theory of value relevance. The fourth part is about the value relevance of deferred income tax and the enterprise empirical analysis and referring to the existing research results puts forward three hypotheses. Hypothesis 1: contribution of per share deferred income tax net assets of stock price greater than net of net of deferred income tax assets and net assets per share on the stock price with. Hypothesis 2: the deferred income tax assets are positively correlated with the enterprise value, and the deferred income tax liability is negatively correlated with the enterprise value. Hypothesis 3: contribution to the stock price per share deferred income tax assets per share and deferred income tax liabilities of different sizes, per share deferred debt and firm value relevance of less than per share of the deferred income tax assets and enterprise value correlation. To study of deferred income tax information value relevance, this paper selects 2008- 2015 years real estate industry listed company data as the sample, the Feltham and Ohlson(1995) residual income valuation model, select the price per share, share deferred income tax assets, earnings per share(EPS) deferred the tax liabilities, basic earnings per share, net asset per share, share deferred income tax net assets index and the regression analysis with SPSS software. Finally, according to empirical analysis, it is concluded that China’s income tax accounting reform has positive significance, can provide more useful accounting information for the accounting information users, further improve the scientific decision making of the investors. In the article finally pointed out some suggestions for further improvement of income tax accounting standards.