An Empirical Study on the Impact of Manufacturing Earnings Management on Income Tax Costs
Under China's current fiscal and taxation system,the prevalence of difference between accounting and tax makes each component of the surplus in the income statement bear different corporate income tax burdens,and enterprises are motivated to achieve their corporate goals through earnings management while minimizing their income tax costs.This paper uses the data of listed companies in China's manufacturing industry from 2012 to 2019 to investigate the relationship between the difference between accounting and tax in the financial statements of manufacturing enterprises and the earnings management behavior of enterprises.The results show that the degree of earnings management of manufacturing enterprises and the statutory tax rate borne by enterprises have a significant positive impact on the use of non-taxable gains and losses to avoid taxes.Further,the more difficult the cash flow situation of manufacturing enterprises,the higher the degree to which they can use non-taxable items in the earnings management process to avoid taxes.Compared with state-owned enterprises,non-state-owned enterprises use this method to avoid income tax to a higher degree.
earnings managementdifference between tax and accountingcorporate income tax costsmanufacturing
万方数据
维普
