Research On The Impact Of Earnings Management On Income Tax Burden From The Perspective Of Taxation Differences

Accounting earnings are the key to the sustainable development of enterprises.Enterprise managers try to make the various earnings indicators of the company meet the business objectives through earnings management.As a means of earnings management,tax planning often leads to conflicts between target inconsistency and earnings management.When a company expects a smooth surplus,tax planning is consistent with earnings management goals.However,when the company expects to increase the surplus,it needs to be faced with the measurement of financial reporting costs and income tax costs.The long-term and appropriate separation and independence of China's corporate accounting standards and corporate income tax laws,and the resulting tax differences provide a way for enterprises to get rid of such dilemmas.Due to the objective existence of tax differences,companies can adjust the income management of earnings management by adjusting the structure of their earnings management.But how much income tax burden can a reduction in earnings management behaviors that companies use tax differences?What is the difference in the earnings management behavior?When conducting negative earnings management,will the company still manipulate the tax difference to avoid tax?What is the difference between the earnings management behaviors of companies with different tax burdens and the difference in taxation?This paper selects the real estate industry with the largest average tax difference and the information technology industry with the second smallest average as the research object,and collects the financial data of the two types of enterprises from 2012 to 2016,taking the profit and loss of maneuverable non-taxable items as the explanatory variables.The manipulative accruals surplus and the corporate income tax rate are explanatory variables.The empirical findings show that:(1)enterprises have the tendency to manipulate the profit and loss of non-taxable items to avoid income tax expenses,but the tax burden that can be avoided is actually very limited.In contrast,for every real estate enterprise to manipulate the accrued surplus of 1 yuan,there is 6.01 points of space to evade income tax by manipulating non-taxable items profit and loss,and information technology enterprises only have 1.61 points.This may be because enterprises are worried about Tax items are too high and cause doubts.(2)Whether it is the information technology industry or the real estate industry,when the goal is to increase the surplus,the enterprise will choose to manipulate non-taxable projects.At this time,the goal of coordinating earnings management and income tax planning is consistent.However,when smoothing profits or minimizing profits,the information technology industry will choose to manipulate taxable items to achieve direct tax avoidance.The real estate industry will still choose to operate non-taxable projects.Although it does not reduce the income tax burden at this time,due to strict supervision of the real estate industry and fierce competition,enterprises will also consider adjusting the non-profits in the current period of excessive profits or extreme losses.Tax items,so as to achieve a smooth profit in the current period or turn losses into profits in the next period.(3)The information technology industry enjoying tax incentives and light income tax burden is not willing to take strict regulatory risks to manipulate the profit and loss of non-taxable items;and the real estate industry with higher income tax burden will have a tendency to manipulate non-profits regardless of the tax rate.The tendency of taxable items.On the whole,the incentives for companies with high tax rates to manipulate the profit and loss of non-taxable projects will be larger than those with low tax rates.The survival and competition environment of enterprises will also have an impact on their motives for tax avoidance.Finally,based on the research results,reasonable suggestions should be made.The government departments should further narrow the institutional differences between accounting standards and income tax laws,and strengthen the supervision of non-taxable projects.Accounting information users should use corporate financial data cautiously and appropriate adjustments have been obtained.Earnings information may be biased towards the use of taxable earnings information with low risk of manipulation.