The Effect Of Accounting Tax System And Management Compensation On The Book-Tax Differences Of Listed Company

Our country's accounting standards and tax laws and regulations after a long after the reform and international convergence,due to the purpose and the starting point is different,two relations gradually tends to be the separation mode,so the financial report disclosure of accounting income and tax returns must exist differences between the taxable income.Accounting standards for enterprises on the one hand,adhere to the requirements for accounting,on the other hand we will strictly in accordance with the provisions of the tax law to pay taxes.The implementation of the new "accounting standard for business enterprises" in 2007,greater space of professional judgment to enterprise accounting personnel,enterprises have more rights to choose accounting policies and accounting estimate method.Due to reasons such as asymmetric information,the management of compensation incentive contracts may induce earnings management,the management in order to maximize their own interests,through the selection and change of accounting policy to manipulate profits,leading to the difference between the income tax will be further increased.Based on the new "accounting standard for business enterprises" in 2007 and in 2008 the implementation of the new "enterprise income tax law" as the background,adopts the method of combining normative research and empirical research,analysis of the institutional factors and management compensation contracts listed company income tax will be differences.This paper selected the Shanghai and shenzhen two city 2013-2013 a-share listed companies as samples,using the profit before duty of enterprise income tax and the taxable amount of income differences as A listed company income tax will measure,the first theoretical analysis after the reform of accounting standards and tax laws and regulations,the income tax will be differences between the institutional factors and management compensation contracts can affect the income tax will be difference of listed companies.Secondly,on the basis of theoretical analysis,put forward in this paper,two research hypotheses,the sample companies descriptive statistical analysis,and makes an empirical analysis using the model constructed in this paper,as well as inspection,in-depth investigation system factor,management compensation contracts the impact on the listed company income tax will be difference.Specific conclusions are as follows:(1)Accounting tax differences are the important factors that affect listed company income tax will be difference.Among them,the sales cost,management cost,profit and loss on the changes in the fair value,investment income,depreciation of fixed assets,intangible assets with the listed company income tax will be positively related to the difference;Non-operating expenditures and assets depreciation reserves is negatively related to the listed company income tax will be difference.In theory,to the sales cost and management cost increase more than the tax deductible parts of the taxable income amount,the cost of sales and management cost is negatively related to income tax will be difference,but in this paper,the linear regression analysis,the sales cost and management cost under 1%level were significantly positive correlated with the income tax will be difference relations,the descriptive statistical analysis shows that the sales cost and management cost of listed companies in decline year by year,the former because the economic situation is not optimistic in recent years,business is bad,lead to slash spending on advertising and business costs,so that the cost has yet to reach 15%of the sales(business)income,there is no need to increase the taxable income amount;Because the latter anti-corruption policy,the enterprise business entertainment may subsequently fell sharply,even more than the sales(business)income of 5 ‰,there is no need to increase the amount of taxable income.Shows,the system of accounting standards and tax legislation differences produce income tax will be one of the main factors.The taxation in order to meet social public needs,is the purpose of it is based on the country's political rights.Accounting is to provide accounting information to users of financial reports,is helpful to users of financial reports to make the right decisions.The accounting system,tax law has stronger rigidity,but relatively flexible accounting,enterprise business process have more autonomy.Accounting standards and tax laws and regulations to the enterprise a certain transaction processing specification is different,a direct result of the income tax will be differences in financial reports of listed companies.(2)The management compensation is one of the factors that affect the income tax will be differences.In theory,management compensation encourages management to their own interests by earnings management,so as to further strengthen the listed company accounting tax differences.That is,the management compensation positive influence on income tax will be difference.Regression results show that the assumption 2 verified but not through the test of significance,that increase the enterprise executive compensation can inhibit the short-sighted behavior of executives,but its with accounting profit and taxable income differences both positive influence is not significant.Management in pursuit of personal interests,will usually choose good accounting policy and handling methods,deliberately adjust the number of enterprise surplus,but this does not mean that the management will always choose to report high profitability accounting policies and methods,in some special cases,such as current profit level has been far more than reward standard or low profitability that is unlikely to be reward standard,management will choose to report lower profits or even losses accounting policy and handling method,so that the profits flowing to the next stage,ensure get pay awards next time.Therefore,the above factors may lead to management compensation contracts would tax differences influence is not obvious.In addition,our country listed company executives openness to pay differentiation is not big,corporate executives on the motive of profit manipulation may not primarily in order to increase its openness compensation,and should be counting on other earnings management purpose.According to research conclusions,this paper puts forward the following Suggestions:(1)To strengthen the accounting system and tax regulations,communication and collaboration.Institutional factors are still the main reason for the differences in income tax will be.In order to decrease the cost of enterprise financial accounting,to strengthen accounting principles and tax laws and regulations in the system of communication and collaboration,using the system differences to avoid this is to prevent enterprises income tax is an important means.(2)To establish and perfect the management compensation contract incentive mechanism and salary information disclosure mechanism.In order to effectively restrain the earnings management behavior of management,need to put on the basis of the accounting information of short-term and on the basis of the market value of long-term incentive,the combination of management equity or options incentive,establish a sound corporate management structure and the mechanism of compensation contracts.