BOOK TAX DIFFERENCES AND EARNING QUALITY

Abstract

ABSTRACT
The purpose of this research is to examine empirically the influence of
book tax differences to earning quality. In this study, Book Tax Differences
divided to two groups: permanent differences and temporary differences, while
for earning quality is proxies with Earning Response Coefficient (ERC).
Population in this research are manufacturing companies in Indonesian
Stock Exchange in period of 2014-2016. With purposive sampling method,
samples used are 23 manufacturing companies for three years, so the total sample
in this research are 69 samples. The data used in this research is secondary data
with engineering documentation. Methods of statistical analysis used multiple
regression using the program SPSS for windows.
The results show that permanent differences variable and temporary
differences variable simultaneously had a significant effect on earning quality
(ERC). While partially, temporary differences significantly affect the earning
quality (ERC) and permanent differences not significantly affect the earning
quality (ERC).
Keywords : Permanent Differences, Temporary Differences, Earning
Quality, Earning Response Coefficient.