Earnings Quality: Impact of Income Smoothing, Earnings Persistence, Book Tax Difference with Good Corporate Governance as Moderation

Feber Sormin () and Titik Aryati

International Journal of Emerging Trends in Social Sciences, 2021, vol. 11, issue 1, 1-9

Abstract: This study has a purpose to determine the effect of Income Smoothing, Earnings Persistence, Book Tax Difference on Earnings Quality and moderating effect of Good Corporate Governance. Using 98 sample data from manufacturing entities on the Indonesia Stock Exchange in 2015-2020, a negative effect of earnings persistence on earnings quality, and a positive effect of differential book tax on earnings quality found in this study, while income smoothing does not. In addition, it was found that good corporate governance by institutional ownership as a proxy strengthens the effect of income smoothing on earnings quality and weakens the effect of book-tax differences on earnings quality. This finding can be used by investors in assessing the quality of earnings from financial information issued by issuers so that future earnings prediction analysis can be measured properly so that the desired return target is achieved.

Keywords: Earnings quality; Income smoothing; Earnings persistence; Book tax difference; Good corporate governance. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://scipg.com/index.php/103/article/view/454/527 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spi:ijetss:v:11:y:2021:i:1:p:1-9:id:454

Access Statistics for this article

More articles in International Journal of Emerging Trends in Social Sciences from Asian Online Journal Publishing Group
Bibliographic data for series maintained by Marina Taylor ().