| The corporate ability to increase alignment between accounting income (book) and fiscal income (tax) is called book-tax conformity. This research discusses the effect of book-tax differences to earnings persistence. The testing of this hypothesis is done by using a simple linear regression analysis, obtained from data of 156 service companies listed on the Indonesia Stock Exchange, with the exception of the financial sector, period 2010-2017. The results showed that a high level of book-tax conformity will weaken the persistence of earnings reported. In addition, the results of this study also indicates that the high value of losses and variations in pre-tax book income will strengthen the persistence of earnings reported by the company. |