The empirical study on the value relevance of tax information in Japanese stock market

Research Project

Project/Area Number	23730426
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Multi-year Fund
Research Field	Accounting
Research Institution	Tohoku University
Principal Investigator	KOMETANI Kenji 東北大学, 大学院・経済学研究科, 准教授 (90432731)
Project Period (FY)	2011 – 2012
Project Status	Completed (Fiscal Year 2012)
Budget Amount *help	¥1,690,000 (Direct Cost: ¥1,300,000、Indirect Cost: ¥390,000) Fiscal Year 2012: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000) Fiscal Year 2011: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Keywords	会計学 / 税効果会計 / 会計利益と課税所得の差額 / 財務会計
Research Abstract	This study focuses on the value relevance of tax information, and reveals following three points. First, I find that managers use the valuation allowance for deferred tax assets to meet their forecast earnings. Second, I show that the large positive (negative) book-tax differences are caused by the income smoothing behavior. Third, my research indicates that Japanese stock market reflects such tax-related information as an indicator of earnings quality.