The purpose of this research is to find out is book tax conformity has impact to the relation of current earnings and future cash flow on manufacturing companies which listed on Indonesia Stock Exchange from 2010 until 2014.
This research use statistic descriptive method and regression to test whether book tax conformity has impact to the relation of current earnings and future cash flow. The result of regression shows that book tax conformity has positive and significant impact to the relation of current earnings and future cash flow. Or on other words, current earnings are more strongly associated with future cash flows when book tax conformity is higher. This research also show that when book tax conformity is high, current tax expense will approach statutory rate times pre tax book income (PTBI). |