The Impact of Deferred Tax on Earnings Quality: Evidence from Algerian Companies

Kimouche Bilal ()
Additional contact information
Kimouche Bilal: Université 20 Août 1955. BP 26, Route d’El Hadaiek-Skikda 21000 - Algérie, +213 661 85 06 85

Zagreb International Review of Economics and Business, 2022, vol. 25, issue 1, 133-148

Abstract: This paper aims to investigate the impact of deferred tax, as a technique adopted to support the economic orientation of financial statements over their legal form, on earnings quality as a required attribute to achieve the objective of financial reporting. The study used the model of Sloan (1996) through 280 firm-year observations that concern 40 Algerian companies from 2013 to 2019. Employing persistence and predictive ability as proxies for earnings quality, the results indicated that earnings of Algerian companies present a high level of persistence and a weak level of predictive ability. However, the deferred tax does impact neither the persistence of earnings nor their predictive ability. Therefore, accounting regulators in Algeria must simplify accounting for the deferred tax to encourage its application by companies and improve earnings quality.

Keywords: Earnings quality; Earnings persistence; Earnings predictive ability; Deferred tax; Algerian companies (search for similar items in EconPapers)
JEL-codes: M40 M41 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/zireb-2022-0009 (text/html)

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:vrs:zirebs:v:25:y:2022:i:1:p:133-148:n:1008

DOI: 10.2478/zireb-2022-0009

Access Statistics for this article

Zagreb International Review of Economics and Business is currently edited by Jurica Šimurina

More articles in Zagreb International Review of Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().