THE INFLUENCE OF BOOKS TAX DIFFERENCES AND ACCRUED EARNINGS ON THE EARNINGS PERSISTENCE

Abstract

This research aims to examine the effects of books tax differences and accrued earnings on the earnings persistence. Descriptive quantitative method is used in this study. Population of this study is food and beverage manufacturing sub sector companies registered in Bursa Efek Indonesia (BEI) from 2010 to 2014. Sample data are collected using purposive sampling method. The used sample in this research is secondary data and the data is collected using documentation technique. Based on the results of the tests, the feasibility of the models test (F-test) shows the book tax differences and accrued earnings as independent variables have significant effect on the earnings persistence as dependent variable. Meanwhile, the partial regression test (t-test) result showes that book tax differencess significantly affects the earnings persistence. This finding indicates that the larger book tax differences cause the higher company persistence earnings. The second result of the test shows that company accrued earnings does not significantly affect earnings persistence. It means that the amount of accrued earnings is not statistically proven in affecting earnings persistence. The weakness of this study is the sampling, because not take all the food and beverage manufacturing sub sector companies registered in Bursa Efek Indonesia (BEI) present their tax reports completely. The result of this study is different with the previous research findings. The difference lies in the use of indicators of the dependent variable, which is the book tax differences. This research uses all the book tax differences value, containing negative and positive value. Meanwhile, the previous research used book tax differences value by separating the value of book tax differences, containing the negative and positive.