The connection between accounting and taxation in some context and the increase of tax burden present a motivations for manager to used tax accounting to influence tax due of firm. Tax information is important and it has a significant influence on the performance of firm.
A lot will depend upon the extent to which financial accounting and tax accounting overlap, such as if tax accounting information can be used to determine accounting profits. Tax accounting is often driven by ways in which an entity can reduce the amount of tax expense globally, whereas financial accounting is driven by maximizing profits, especially where manager's performance is linked to accounting profits.
Dears,
For this issue I suggest those papers:
Desai, M. & Dharmapala, D. 2009. Corporate Tax Avoidance And Firm Value. Review Of Economics And Statistics 91, 537–546.
Kim, J. B., Li, Y. & Zhang, L. 2011. Corporate Tax Avoidance And Stock Price Crash Risk: Firm-Level Analysis. Journal Of Financial Economics, 639–662.
All the best
Feige, E. L. (2007). The underground economies: Tax evasion and information distortion. Cambridge University Press.
There are many international literature (Modigliani and Miller, 1963; Graham, 2003; Stancu, 2007; tattoo L ., Wu and Yue,2009:, e.t,c.,) consern the issue of the impact of taxation and tax informations on the financial performance of the company. The results of these studies, as weel the company practise, showed that the tax has a significiant impact Return on equity (ROE) and Return on Assets (ROA). So, the tax informations provided by Tax Accounting have to be with particulary way analyzed and follow.
Hope, this will be useful for you
I hope the following article can help you:
Hope, O.-K., Ma, M. S., & Thomas, W. B. (2013). Tax avoidance and geographic earnings disclosure. Journal of Accounting and Economics, 56(2), 170-189.
best wishes
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