이익조정탐지를 위한 회계이익과 과세소득 차이변수의 유용성에 관한 이론적 연구

This study investigates the usefulness of book-tax difference measures on detecting earnings management and their incremental effect in addition to accrual measures. Building on the evidence of earnings management in Burgstahler and Dichev (1997), Mills and Newberry (2001), and Pillips et al.(2003), we investigate the usefulness of BTD in identifying earnings management to meet two earnings targets: (1) to avoid reporting an earnings decline and (2) to avoid reporting a loss. When managers understate accounting earnings, there will be non tax expense occurred in the capital market and managers can save tax expense by understating taxable income. Temporary difference is mainly the result of managers' discretion to increase earnings and it can be used as a proxy for earning management. Out of temporary differences, deferred tax liability is shown when accounting earnings are greater than taxable income due to temporary difference to be added in future periods and can be used to manage earnings. In prior research book-tax difference, temporary difference, deferred tax liability, changes in net deferred tax liability(changes in deferred tax liability minus changes in deferred tax asset), and deferred tax expense(changes in deferred tax expense via temporary difference in disclosure) are defined as proxies for earnings management. Also, prior research use total accruals(Healy 1985), modified Jones model abnormal accruals (Dechow et al. 1995), forward-looking abnormal accruals (Dechow et al. 2003), and Yoon and Miller model accruals(Yoon and Miller 2002) as proxies for accruals that reflect earnings management.