The Effect of Book-Tax Differences Level on the Persistence of Earnings, Accruals and Operating Cash Flows

Persistence of earnings، accruals and operating cash flows as a qualitative characteristic can effect on information risk. Research literatures indicate that book-tax difference may influence assessment of investors about future earnings persistence. Management may use tax calculation for earnings management purposes and as a result of this action may reduce earnings persistent. In the other words، book-tax differences may be informative about discretion of management in the accruals. In this research، we investigate the impact or role of the level of book-tax differences on the persistence of earnings، accruals، and cash flows. The research sample is based on the 70 active firms listed on Tehran Stock Exchange for the period 1382 to 1389 and we also applied multi regression for hypotheses analysis. The Findings of the research is similar as the research literature. The results indicate that in the general، the persistent for the firm-years with large book-tax differences is less than for the firm-years with small book-tax differences.