The effect of IFRS adoption and law enforcement on book tax aggressiveness: evidence from Asean countries
Abstract
Firms are arguably motivated to exhibit tax aggressiveness because tax constitutes a significant portion of firms’ total costs. This study aims to test the effects of IFRS adoption and law enforcement on book-tax aggressiveness in six developing ASEAN countries. Our sample is 29,504 firm-year observations generated from Thomson Reuters Eikon for the years 2000–2017. The results show that IFRS adoption has a positive effect on book-tax aggressiveness, indicating that firms tend to prioritize book-tax aggressiveness over book-tax conformity. Further, law enforcement negatively affects book-tax aggressiveness. All in all, our findings imply that law enforcement is very crucial for ASEAN countries to enhance managers’ awareness of not engaging the book-tax aggressiveness practice.
Keyword : tax reporting aggressiveness, financial reporting aggressiveness, IFRS, law enforcement
How to Cite
Damayanti, T. W. (2019). The effect of IFRS adoption and law enforcement on book tax aggressiveness: evidence from Asean countries. Business: Theory and Practice, 20, 284-292. https://doi.org/10.3846/btp.2019.27
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Atwood TJ, Drake MS, Myers JN, Myers LA (2012) Home country tax system characteristics and corporate tax avoidance: international evidence. The Accounting Review 87 (6): 1831-1860. https://doi.org/10.2308/accr-50222
Badertscher BA, Phillips JD, Pincus M, Rego SO (2009) earnings management strategies and the trade-off between tax benefits and detection risk: to conform or not to conform? The Accounting Review 84 (1): 63-97. https://doi.org/10.2308/accr.2009.84.1.63
Balakrishnan K, Blouin J, Guay WR (2012) Tax aggressiveness and corporate transparency https://ssrn.com/abstract=1792783
Ball R, Shivakumar L (2005) Earnings quality in UK private firms: comparative loss recognition timeliness. Journal of Accounting and Economics 39: 83-128. https://doi.org/10.1016/j.jacceco.2004.04.001
Ball R (2006) International financial reporting standards (IFRS): Pros and cons for investors. Accounting and Business Research 36 (1): 5-27. https://doi.org/10.1080/00014788.2006.9730040
Barth ME, Landsman WR, Lang MH (2008) International accounting standards and accounting quality. Journal of Accounting Research 46 (3): 467-498. https://doi.org/10.1111/j.1475-679X.2008.00287.x
Beneish M (1999) Incentives and penalties related to earnings overstatements that violate GAAP. The Accounting Review 74 (4): 425-457. https://doi.org/10.2308/accr.1999.74.4.425
Blaylock BS, Shevlin TJ, Gaertner FB (2015) The Association between book-tax conformity and earnings. Management Review of Accounting Studies 20 (1): 141-172. https://doi.org/10.2139/ssrn.1983107
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Braga RN (2017) Effects of IFRS adoption on tax avoidance. Revista Contabilidade & Finanças 28 (75): 407-424. https://doi.org/10.1590/1808-057x201704680
Cairns D, Massoudi D, Taplin R, Tarca A (2011) FRS fair value measurement and accounting policy choice in the United Kingdom and Australia. The British Accounting Review 43: 1-21. https://doi.org/10.1016/j.bar.2010.10.003
Callao S, Jarne J (2010) Have IFR S affected earnings management in the European Union? Accounting in Europe 7 (2): 159-189. https://doi.org/10.1080/17449480.2010.511896
Chan KH, Lin KZ, Mo PLL (2010) Will a departure from tax-based accounting encourage tax noncompliance? Archival evidence from a transitory economy. Journal of Accounting and Economics 50: 58-73. https://doi.org/10.1016/j.jacceco.2010.02.001
Chan KH, Lin KZ, Tang F (2013) Tax effects of book-tax conformity, financial reporting incentives, and firm size. Journal of International Accounting Research 12 (2): 1-25. https://doi.org/10.2308/jiar-50404
Chen E, Gavious I, Yosef R (2013) The relationship between the management of book income and taxable income under a moderate level of book-tax conformity. Journal of Accounting, Auditing & Finance 28 (4): 323-347. https://doi.org/10.1177/0148558X13505591
Chen E, Gavious I (2017) The roles of book‐tax conformity and tax enforcement in regulating tax reporting behavior following International Financial Reporting Standards adoption. Accounting and Finance 57 (3): 681-699. https://doi.org/10.1111/acfi.12172
Christensen H, Hail L, Leuz C (2013) Mandatory IFRS reporting and changes in enforcement. Journal of Accounting and Economics 56 (2): 147-177. https://doi.org/10.1016/j.jacceco.2013.10.007
Dhaliwal DS, Huber R, Lee HS, Pincus M (2008) Book-tax differences, uncertainty about fundamentals and information quality, and cost of capital https://ssrn.com/abstract=1127956
Dechow P, Sloan R, Sweeney A (1995) Detecting earnings management. The Accounting Review 70 (2): 193-226.
Desai M (2002) The divergence between book and tax income. Tax Policy and the Economy 17 (1): 169-206. https://doi.org/10.1086/tpe.17.20140508
Desai M (2005) The degradation of reported corporate profits. The Journal of Economic Perspectives 19: 171-193. https://doi.org/10.2139/ssrn.758144
Desai MA, Dyck A, Zingales L (2007) Theft and taxes. Journal of Financial Economics 84 (3): 591-623. https://doi.org/10.1016/j.jfineco.2006.05.005
Dobrovič J, Gombár M, Ali Taha V (2018) Forms of managing the efficiency of tax administration in Slovak Republic. Journal of International Studies 11 (2): 304-314. https://doi.org/10.14254/2071-8330.2018/11-2/20
Erickson M, Hanlon M, Maydew E (2004) How much will firms pay for earnings that do not exist?: Evidence of taxes paid on allegedly fraudulent earnings. The Accounting Review 79 (2): 387-408. https://doi.org/10.2139/ssrn.347420
Frank MM, Lynch LJ, Rego SO (2009) Tax reporting aggressiveness and its relation to aggressive financial reporting. The Accounting Review 84 (2): 467-496. https://doi.org/10.2308/accr.2009.84.2.467
Fernandes A, Cerqueira A, Brandao E (2017) Tax and financial reporting aggressiveness: evidence from Europe. FEP Working Papers, School of Economics and Management, University of Porto.
Hanlon M (2005) The persistence and pricing of earnings, accruals, and cash flows when firms have large book-tax differences. The Accounting Review 80 (1): 137-166. https://doi.org/10.2308/accr.2005.80.1.137
Hanlon M, Slemrod J (2009) What does tax aggressiveness signal? Evidence from stock market reaction to news about tax shelter involvement. Journal of Public Economics 93: 126-141. https://doi.org/10.1016/j.jpubeco.2008.09.004
Heltzer W, Mindak MP, Shelton SW (2012) The relation between aggressive financial reporting and aggressive tax reporting: Evidence from ex-Arthur Andersen clients. Research in Accounting Regulation 24 (2): 96-104. https://doi.org/10.1016/j.racreg.2012.05.001
Huang M, Chen H, Rickards RC (2018) The effects of IFRS adoption on tax avoidance in Europe. Journal of Management and Business Research 35 (1): 57-78.
Jeanjean T, Stolowy H (2008) Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption. Journal of Accounting and Public Policy 27: 480-494. https://doi.org/10.1016/j.jaccpubpol.2008.09.008
Jiang XY (2013) Tax enforcement, tax aggressiveness and stock price crash risk. Nankai Business Review 5: 152-160. https://doi.org/10.2139/ssrn.3105186
Jiraskova S (2015) The relationship between tax and book income after adoption IFRS in the Czech Republic in comparison with other European Countries. Journal of Economics, Business and Management 3 (12): 1180-1184. https://doi.org/10.7763/JOEBM.2015.V3.355
Kamila PA, Martani D (2017) Analisis Hubungan Agresivitas Pelaporan Keuangan Dan Agresivitas Pajak. Jurnal Keuangan dan Perbankan 16 (2).
Kantsukov M, Sander P (2018) A less in valuation from Estonia: The difference between the fundamental value of equity under distributed and traditional profit taxation system. Business: Theory and Practice 19: 146-156. https://doi.org/10.3846/btp.2018.15
Karampinis N, Hevas DL (2013) Effects of IFRS Adoption on Tax-induced Incentives for Financial Earnings Management: Evidence from Greece. The International Journal of Accounting 48 (2): 218-247. https://doi.org/10.1016/j.intacc.2013.04.003
Kim JB, Li, Zhang L (2011) Corporate tax avoidance and stock price crash risk: firm-level analysis. Journal of Financial Economics 100: 639-662. https://doi.org/10.1016/j.jfineco.2010.07.007
King S, Sheffrin SM (2002) Tax evasion and equity theory: an investigative approach. International Tax and Public Finance 9: 505-521. https://doi.org/10.1023/A:1016528406214
Ko JK, Choi EH, Kim WY (2012) The relation between aggressive financial reporting and aggressive tax reporting: Korean evidence. Korean Accounting Journal 21 (3): 95-130.
Koh Y, Lee H-A (2015) The effect of financial factors on firms’ financial and tax reporting decisions. Asian Review of Accounting 23 (2): 110-138. https://doi.org/10.1108/ARA-01-2014-0016
Kraft A (2015) Management earnings forecasts and book-tax differences. International Journal of Economics and Finance 7 (3): 1-23. https://doi.org/10.5539/ijef.v7n3p1
Landsman WR, Maydew EL, Thornock JR (2012) The information content of annual earnings announcements and mandatory adoption of IFRS. Journal of Accounting and Economics 53 (1): 34-54. https://doi.org/10.1016/j.jacceco.2011.04.002
Lee N (2010) Shock and law: Fin 48 Report Card, IFRS and beyond. International Journal of Economics and Finance 2 (3): 222-233. https://doi.org/10.5539/ijef.v2n3p222
Lennox C, Lisowsky P, Pittman J (2013) Tax aggressiveness and accounting fraud. Journal of Accounting Research 51 (4): 739-778. https://doi.org/10.1111/joar.12002
Mills L, Newberry K, Trautman W (2002) Trends in book-tax income and balance sheet differences. Tax Notes 19: 1109-1124. https://doi.org/10.2139/ssrn.313040
Nobes C (2006) The survival of international differences under IFRS: towards a research agenda. Accounting Bussiness Research 36: 233-245. https://doi.org/10.1080/00014788.2006.9730023
Nulla YM (2014) Does IFRS adoption influence quality of reporting?: An empirical evidence from large Canadian banks. International Journal of Accounting and Taxation 2 (2): 85-109.
Okafor ON (2015) Effects of IFRS on accounting quality and tax aggressiveness: evidence from Canadian mandatory adoption. University of Calgary.
Paulík J, Kombo F, Ključnikov A (2015) CSR as a driver of satisfaction and loyalty in commercial banks in the Czech Republic. Journal of International Studies 8 (3): 112-127. https://doi.org/10.14254/2071-8330.2015/8-2/15
Phillips J, Pincus M, Rego S (2003) Earnings management: New evidence based on deferred tax expense. The Accounting Review 78 (2): 491-521. https://doi.org/10.2308/accr.2003.78.2.491
Rachmawati NA, Martani D (2017) Book-tax conformity level on the relationship between tax reporting aggressiveness and financial reporting aggressiveness. Australasian Accounting, Business and Finance Journal 11 (4): 86-101. https://doi.org/10.14453/aabfj.v11i4.7
Rosen A, Rosen M (2009) Critics speak out as IFRS looms: Charest latest to criticize vague new rules. Financial Post http://www.rosen-associates.com/pdf/09_May13_Critics%20speak%20out%20as%20IFRS%20looms.pdf
Roxas ML (2016) Additional evidence of firms’ willingness to pay taxes on apparent fictitious earnings. Journal of Applied Business and Economics 18 (6):112-117.
Shackelford DA, Shevlin T (2001) Empirical tax research in accounting. Journal of Accounting and Economics 31: 321-387. https://doi.org/10.1016/S0165-4101(01)00022-2
Tsalavoutas I, Andre P, Evans L (2012) The transition to IFRS and the value relevance of financial statements in Greece. British Accounting Review 44 (4): 262-277. https://doi.org/10.1016/j.bar.2012.09.004
Tang TYH (2015) Does book-tax conformity deter opportunistic book and tax reporting? An international analysis. European Accounting Review 24 (3): 441-469. https://doi.org/10.1080/09638180.2014.932297
Vaivode I (2018) Born global companies. Is this a future economy of Latvia? A preliminary study. Business: Theory and Practice 19: 288-299. https://doi.org/10.3846/btp.2018.29
Wang L (2015) Tax enforcement, corporate tax aggressiveness, and cash holdings. China Finance Review International 5 (4): 339-370. https://doi.org/10.1108/CFRI-12-2014-0099
Watrin C, Pott C, Ullman R (2012) The effect of book – tax conformity and tax accounting incentives on financial accounting: evidence from public and private limited companies in Germany. International Journal of Accounting Auditing and Performance Evaluation 8 (3): 274-302. https://doi.org/10.1504/IJAAPE.2012.047811
Whitaker C (2005) Bridging the book – tax accounting gap. Yale Law Journal 115 (3): 680-726.
Wilhelm PG (2002) International validation of the corruption perceptions index: Implications for business ethics and entrepreneurship education. Journal of Business Ethics 35 (3): 177-189. https://doi.org/10.1023/A:1013882225402
Ye KT, Liu H (2011) Tax enforcement, income tax costs, and earnings management. Management World 5: 140-148.
Zeng YM, Zhang JS (2009) Does tax enforcement play a role as a corporate governance mechanism. Management World 3: 143-151.
Atwood TJ, Drake M, Myers LA (2010) Book-tax conformity, earnings persistence and the association between earnings and future cash flows. Journal of Accounting and Economics 50: 111-125. https://doi.org/10.1016/j.jacceco.2009.11.001
Atwood TJ, Drake MS, Myers JN, Myers LA (2012) Home country tax system characteristics and corporate tax avoidance: international evidence. The Accounting Review 87 (6): 1831-1860. https://doi.org/10.2308/accr-50222
Badertscher BA, Phillips JD, Pincus M, Rego SO (2009) earnings management strategies and the trade-off between tax benefits and detection risk: to conform or not to conform? The Accounting Review 84 (1): 63-97. https://doi.org/10.2308/accr.2009.84.1.63
Balakrishnan K, Blouin J, Guay WR (2012) Tax aggressiveness and corporate transparency https://ssrn.com/abstract=1792783
Ball R, Shivakumar L (2005) Earnings quality in UK private firms: comparative loss recognition timeliness. Journal of Accounting and Economics 39: 83-128. https://doi.org/10.1016/j.jacceco.2004.04.001
Ball R (2006) International financial reporting standards (IFRS): Pros and cons for investors. Accounting and Business Research 36 (1): 5-27. https://doi.org/10.1080/00014788.2006.9730040
Barth ME, Landsman WR, Lang MH (2008) International accounting standards and accounting quality. Journal of Accounting Research 46 (3): 467-498. https://doi.org/10.1111/j.1475-679X.2008.00287.x
Beneish M (1999) Incentives and penalties related to earnings overstatements that violate GAAP. The Accounting Review 74 (4): 425-457. https://doi.org/10.2308/accr.1999.74.4.425
Blaylock BS, Shevlin TJ, Gaertner FB (2015) The Association between book-tax conformity and earnings. Management Review of Accounting Studies 20 (1): 141-172. https://doi.org/10.2139/ssrn.1983107
Blanchette M, Racicot F, Girard J (2011) The Effects of IFRS on financial ratios: early evidence in Canada. Certified General Accountants Association of Canada http://www.cga-canada.org/enca/ResearchReports/ca_rep_2011-03_IFRS_early_adopters.pdf
Braga RN (2017) Effects of IFRS adoption on tax avoidance. Revista Contabilidade & Finanças 28 (75): 407-424. https://doi.org/10.1590/1808-057x201704680
Cairns D, Massoudi D, Taplin R, Tarca A (2011) FRS fair value measurement and accounting policy choice in the United Kingdom and Australia. The British Accounting Review 43: 1-21. https://doi.org/10.1016/j.bar.2010.10.003
Callao S, Jarne J (2010) Have IFR S affected earnings management in the European Union? Accounting in Europe 7 (2): 159-189. https://doi.org/10.1080/17449480.2010.511896
Chan KH, Lin KZ, Mo PLL (2010) Will a departure from tax-based accounting encourage tax noncompliance? Archival evidence from a transitory economy. Journal of Accounting and Economics 50: 58-73. https://doi.org/10.1016/j.jacceco.2010.02.001
Chan KH, Lin KZ, Tang F (2013) Tax effects of book-tax conformity, financial reporting incentives, and firm size. Journal of International Accounting Research 12 (2): 1-25. https://doi.org/10.2308/jiar-50404
Chen E, Gavious I, Yosef R (2013) The relationship between the management of book income and taxable income under a moderate level of book-tax conformity. Journal of Accounting, Auditing & Finance 28 (4): 323-347. https://doi.org/10.1177/0148558X13505591
Chen E, Gavious I (2017) The roles of book‐tax conformity and tax enforcement in regulating tax reporting behavior following International Financial Reporting Standards adoption. Accounting and Finance 57 (3): 681-699. https://doi.org/10.1111/acfi.12172
Christensen H, Hail L, Leuz C (2013) Mandatory IFRS reporting and changes in enforcement. Journal of Accounting and Economics 56 (2): 147-177. https://doi.org/10.1016/j.jacceco.2013.10.007
Dhaliwal DS, Huber R, Lee HS, Pincus M (2008) Book-tax differences, uncertainty about fundamentals and information quality, and cost of capital https://ssrn.com/abstract=1127956
Dechow P, Sloan R, Sweeney A (1995) Detecting earnings management. The Accounting Review 70 (2): 193-226.
Desai M (2002) The divergence between book and tax income. Tax Policy and the Economy 17 (1): 169-206. https://doi.org/10.1086/tpe.17.20140508
Desai M (2005) The degradation of reported corporate profits. The Journal of Economic Perspectives 19: 171-193. https://doi.org/10.2139/ssrn.758144
Desai MA, Dyck A, Zingales L (2007) Theft and taxes. Journal of Financial Economics 84 (3): 591-623. https://doi.org/10.1016/j.jfineco.2006.05.005
Dobrovič J, Gombár M, Ali Taha V (2018) Forms of managing the efficiency of tax administration in Slovak Republic. Journal of International Studies 11 (2): 304-314. https://doi.org/10.14254/2071-8330.2018/11-2/20
Erickson M, Hanlon M, Maydew E (2004) How much will firms pay for earnings that do not exist?: Evidence of taxes paid on allegedly fraudulent earnings. The Accounting Review 79 (2): 387-408. https://doi.org/10.2139/ssrn.347420
Frank MM, Lynch LJ, Rego SO (2009) Tax reporting aggressiveness and its relation to aggressive financial reporting. The Accounting Review 84 (2): 467-496. https://doi.org/10.2308/accr.2009.84.2.467
Fernandes A, Cerqueira A, Brandao E (2017) Tax and financial reporting aggressiveness: evidence from Europe. FEP Working Papers, School of Economics and Management, University of Porto.
Hanlon M (2005) The persistence and pricing of earnings, accruals, and cash flows when firms have large book-tax differences. The Accounting Review 80 (1): 137-166. https://doi.org/10.2308/accr.2005.80.1.137
Hanlon M, Slemrod J (2009) What does tax aggressiveness signal? Evidence from stock market reaction to news about tax shelter involvement. Journal of Public Economics 93: 126-141. https://doi.org/10.1016/j.jpubeco.2008.09.004
Heltzer W, Mindak MP, Shelton SW (2012) The relation between aggressive financial reporting and aggressive tax reporting: Evidence from ex-Arthur Andersen clients. Research in Accounting Regulation 24 (2): 96-104. https://doi.org/10.1016/j.racreg.2012.05.001
Huang M, Chen H, Rickards RC (2018) The effects of IFRS adoption on tax avoidance in Europe. Journal of Management and Business Research 35 (1): 57-78.
Jeanjean T, Stolowy H (2008) Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption. Journal of Accounting and Public Policy 27: 480-494. https://doi.org/10.1016/j.jaccpubpol.2008.09.008
Jiang XY (2013) Tax enforcement, tax aggressiveness and stock price crash risk. Nankai Business Review 5: 152-160. https://doi.org/10.2139/ssrn.3105186
Jiraskova S (2015) The relationship between tax and book income after adoption IFRS in the Czech Republic in comparison with other European Countries. Journal of Economics, Business and Management 3 (12): 1180-1184. https://doi.org/10.7763/JOEBM.2015.V3.355
Kamila PA, Martani D (2017) Analisis Hubungan Agresivitas Pelaporan Keuangan Dan Agresivitas Pajak. Jurnal Keuangan dan Perbankan 16 (2).
Kantsukov M, Sander P (2018) A less in valuation from Estonia: The difference between the fundamental value of equity under distributed and traditional profit taxation system. Business: Theory and Practice 19: 146-156. https://doi.org/10.3846/btp.2018.15
Karampinis N, Hevas DL (2013) Effects of IFRS Adoption on Tax-induced Incentives for Financial Earnings Management: Evidence from Greece. The International Journal of Accounting 48 (2): 218-247. https://doi.org/10.1016/j.intacc.2013.04.003
Kim JB, Li, Zhang L (2011) Corporate tax avoidance and stock price crash risk: firm-level analysis. Journal of Financial Economics 100: 639-662. https://doi.org/10.1016/j.jfineco.2010.07.007
King S, Sheffrin SM (2002) Tax evasion and equity theory: an investigative approach. International Tax and Public Finance 9: 505-521. https://doi.org/10.1023/A:1016528406214
Ko JK, Choi EH, Kim WY (2012) The relation between aggressive financial reporting and aggressive tax reporting: Korean evidence. Korean Accounting Journal 21 (3): 95-130.
Koh Y, Lee H-A (2015) The effect of financial factors on firms’ financial and tax reporting decisions. Asian Review of Accounting 23 (2): 110-138. https://doi.org/10.1108/ARA-01-2014-0016
Kraft A (2015) Management earnings forecasts and book-tax differences. International Journal of Economics and Finance 7 (3): 1-23. https://doi.org/10.5539/ijef.v7n3p1
Landsman WR, Maydew EL, Thornock JR (2012) The information content of annual earnings announcements and mandatory adoption of IFRS. Journal of Accounting and Economics 53 (1): 34-54. https://doi.org/10.1016/j.jacceco.2011.04.002
Lee N (2010) Shock and law: Fin 48 Report Card, IFRS and beyond. International Journal of Economics and Finance 2 (3): 222-233. https://doi.org/10.5539/ijef.v2n3p222
Lennox C, Lisowsky P, Pittman J (2013) Tax aggressiveness and accounting fraud. Journal of Accounting Research 51 (4): 739-778. https://doi.org/10.1111/joar.12002
Mills L, Newberry K, Trautman W (2002) Trends in book-tax income and balance sheet differences. Tax Notes 19: 1109-1124. https://doi.org/10.2139/ssrn.313040
Nobes C (2006) The survival of international differences under IFRS: towards a research agenda. Accounting Bussiness Research 36: 233-245. https://doi.org/10.1080/00014788.2006.9730023
Nulla YM (2014) Does IFRS adoption influence quality of reporting?: An empirical evidence from large Canadian banks. International Journal of Accounting and Taxation 2 (2): 85-109.
Okafor ON (2015) Effects of IFRS on accounting quality and tax aggressiveness: evidence from Canadian mandatory adoption. University of Calgary.
Paulík J, Kombo F, Ključnikov A (2015) CSR as a driver of satisfaction and loyalty in commercial banks in the Czech Republic. Journal of International Studies 8 (3): 112-127. https://doi.org/10.14254/2071-8330.2015/8-2/15
Phillips J, Pincus M, Rego S (2003) Earnings management: New evidence based on deferred tax expense. The Accounting Review 78 (2): 491-521. https://doi.org/10.2308/accr.2003.78.2.491
Rachmawati NA, Martani D (2017) Book-tax conformity level on the relationship between tax reporting aggressiveness and financial reporting aggressiveness. Australasian Accounting, Business and Finance Journal 11 (4): 86-101. https://doi.org/10.14453/aabfj.v11i4.7
Rosen A, Rosen M (2009) Critics speak out as IFRS looms: Charest latest to criticize vague new rules. Financial Post http://www.rosen-associates.com/pdf/09_May13_Critics%20speak%20out%20as%20IFRS%20looms.pdf
Roxas ML (2016) Additional evidence of firms’ willingness to pay taxes on apparent fictitious earnings. Journal of Applied Business and Economics 18 (6):112-117.
Shackelford DA, Shevlin T (2001) Empirical tax research in accounting. Journal of Accounting and Economics 31: 321-387. https://doi.org/10.1016/S0165-4101(01)00022-2
Tsalavoutas I, Andre P, Evans L (2012) The transition to IFRS and the value relevance of financial statements in Greece. British Accounting Review 44 (4): 262-277. https://doi.org/10.1016/j.bar.2012.09.004
Tang TYH (2015) Does book-tax conformity deter opportunistic book and tax reporting? An international analysis. European Accounting Review 24 (3): 441-469. https://doi.org/10.1080/09638180.2014.932297
Vaivode I (2018) Born global companies. Is this a future economy of Latvia? A preliminary study. Business: Theory and Practice 19: 288-299. https://doi.org/10.3846/btp.2018.29
Wang L (2015) Tax enforcement, corporate tax aggressiveness, and cash holdings. China Finance Review International 5 (4): 339-370. https://doi.org/10.1108/CFRI-12-2014-0099
Watrin C, Pott C, Ullman R (2012) The effect of book – tax conformity and tax accounting incentives on financial accounting: evidence from public and private limited companies in Germany. International Journal of Accounting Auditing and Performance Evaluation 8 (3): 274-302. https://doi.org/10.1504/IJAAPE.2012.047811
Whitaker C (2005) Bridging the book – tax accounting gap. Yale Law Journal 115 (3): 680-726.
Wilhelm PG (2002) International validation of the corruption perceptions index: Implications for business ethics and entrepreneurship education. Journal of Business Ethics 35 (3): 177-189. https://doi.org/10.1023/A:1013882225402
Ye KT, Liu H (2011) Tax enforcement, income tax costs, and earnings management. Management World 5: 140-148.
Zeng YM, Zhang JS (2009) Does tax enforcement play a role as a corporate governance mechanism. Management World 3: 143-151.