THE INFLUENCE OF DEFERRED TAX ASSESSMENT, TAX PLANNING AND BOOK-TAX DIFFERENCE IN PREDICTING CORPORATE BOND RATINGS

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 develops in Indonesia, the availability of information is very necessary for investors or creditors, this is because this information is used to measure the risk of bond investment. This research aims to determine the effect of deferred tax assessment, tax planning and book tax differences in predicting corporate bond ratings in Indonesia for the period 2013 to 2017. The sample for this research uses data from all companies from the Indonesia Stock Exchange and Pefindo from 2013 to 2017 except sector companies. finance and insurance with a total of 445 observations. The analysis technique used in this research is logistic regression analysis using the SPSS24 statistical tool. The research results reveal that the book tax difference has a significant negative effect in predicting bond ratings, while deferred tax assessment and tax planning have no effect in predicting bond ratings. This research has the implication that investors and credit rating agencies should not ignore the book tax difference when assessing ratings.

Keywords: Bond Ratings, Deferred Tax Valuation, Tax Planning, Book Tax Difference

Sources: http://repository.unair.ac.id/80368/