PENGARUH BOOK-TAX DIFFERENCESDAN STRUKTUR KEPEMILIKAN TERHADAP RELEVANSI LABA AKPM

Abstract

This study aimed to test the influ-ence of book tax differences and family
ownership structure on value relevance of earning. Value relevance of earning is very important to investor because it affect the quality of financial report. To test the influence of book tax differ-ences, book-tax differences are sepe-rated to be normal and abnormal book
tax differences. The results show that nor-mal book tax differences have negative influence to value relevance of earning and abnormal book tax differences have positive influence to value relevance of earning. These results show that inves-tor reward the tax avoidance by higher stock price because it maximizes the shareholder’s wealth. Ownership struc-ture that to be tested is family owner-ship and institutional ownership. Fam-ily ownership and institutional ownership does not have influence to value rel-evance of earning. These results show that there are not enough evidence that family ownership and institutional own-ership able to mitigate earning manage-ment and tax avoidance.