산업별 재무이익－세무이익의 일치성과 재무보고의 질

There is an ongoing debate in the literature about the costs and benefits of conforming book income and taxable income. Proponents argue that book-tax conformity will reduce managerial opportunism over financial reporting, curtail tax avoidance and minimize firm compliance costs. Opponents of book-tax conformity counter that conformity will lead to a significant loss of financial information. We conduct our empirical analyses using a sample of more than 6,000 firm-year observations from 2001 through 2016. We use several proxies for financial reporting quality from prior literature(Hope et al. 2013). including two measures capturing earnings management, three measure capturing overall financial reporting discretion. We test whether high levels of book-tax conformity are associated with less or more financial reporting quality. We find that, on average, higher book-tax conformity is associated with significantly more financial reporting quality. This is a study that supports the view of increasing the consistency between book and tax. Our findings are consistent with the claim that higher book-tax conformity limits earnings management. these findings should matter to academics and policymakers in considering the benefits and costs of conforming book income and taxable income.