Title: THE EFFECT OF DEFERRED TAX ASSESSMENT, TAX PLANNING AND BOOK-TAX DIFFERENCE IN PREDICTING CORPORATE BOND RATINGS
Author: DWI MAY ADI INDRA LUCIANA
Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
As the bond market in Indonesia continues to grow, information availability is crucial for investors and creditors, as it is used to assess bond investment risk. This study aims to determine the effect of deferred tax assessment, tax planning, and book tax differences in predicting corporate bond ratings in Indonesia from 2013 to 2017. The sample used in this study is data from all companies from the Indonesia Stock Exchange and Pefindo from 2013 to 2017, except for companies in the financial and insurance sectors, with a total of 445 observations. The analysis technique used in this study is logistic regression analysis using SPSS24 statistical tools. The results reveal that book tax differences have a significant negative effect in predicting bond ratings, while deferred tax assessment and tax planning have no effect in predicting bond ratings. This study implies that investors and credit rating agencies should not ignore book tax differences in assessing ratings.
Keywords: Bond Ratings, Deferred Tax Valuation, Tax Planning, Book Tax Difference
Sources: http://repository.unair.ac.id/80368/