Survey Relation between Accounting Conservatism and difference between Governments prepared Tax and Definite Tax with Tax Expresses in listed Companies of Tehran Stock Exchange
Tax is one of the factors that influence conservatism. In previous studies the relation between tax income and conservatism investigated and a positive and significant relation between them has been found. Findings showed the more the tax, the more increase of Conservatism. Clarifying this, some questions arise including determining tax income by the government, whether it consider conservatism incentives for reducing tax income or not. This research will focus on another facet of the topic about conservatism and tax income. In order to do this, with usage of the same data we will focus on finding empirical results about effect of conservatism on difference in government tax and firm tax. Accordingly, operational definition of conservatism is expressed by Givoly and Hayn (2000) and model has been used, and for the tax expressed, government-prepared tax income and tax definite reading notes of financial statement and use this information. Findings of investigation of 146 firms (798 firm-years) listed in Tehran Stock Exchange in 2002 to 2012 by unbalanced Panel model representative, relation between difference in government tax and tax expresses and conservatism was not significant. We find that firms for reducing their tax expenses will do more conservatism and on the other hand the government will cancel this effect with requesting higher tax. In other words, the empirical results state that conservatism is not a fundamental factor for difference between government requested tax and tax expresses, therefore firms can save tax expenses by accounting conservatism.
Mehrani, S. and Seyyedi, S. J. (2015). Survey Relation between Accounting Conservatism and difference between Governments prepared Tax and Definite Tax with Tax Expresses in listed Companies of Tehran Stock Exchange. New Researches on Accounting, 1(1), 56-72.
MLA
Mehrani, S. , and Seyyedi, S. J. . "Survey Relation between Accounting Conservatism and difference between Governments prepared Tax and Definite Tax with Tax Expresses in listed Companies of Tehran Stock Exchange", New Researches on Accounting, 1, 1, 2015, 56-72.
HARVARD
Mehrani, S., Seyyedi, S. J. (2015). 'Survey Relation between Accounting Conservatism and difference between Governments prepared Tax and Definite Tax with Tax Expresses in listed Companies of Tehran Stock Exchange', New Researches on Accounting, 1(1), pp. 56-72.
CHICAGO
S. Mehrani and S. J. Seyyedi, "Survey Relation between Accounting Conservatism and difference between Governments prepared Tax and Definite Tax with Tax Expresses in listed Companies of Tehran Stock Exchange," New Researches on Accounting, 1 1 (2015): 56-72,
VANCOUVER
Mehrani, S., Seyyedi, S. J. Survey Relation between Accounting Conservatism and difference between Governments prepared Tax and Definite Tax with Tax Expresses in listed Companies of Tehran Stock Exchange. New Researches on Accounting, 2015; 1(1): 56-72.