USING GMM ESTIMATION TO STUDY THE FACTORS AFFECTING THE DIFFERENCE BETWEEN ACCOUNTING PROFIT AND TAXABLE INCOME OF VIETNAMESE LISTED COMPANIES

Abstract

The differences between accounting profit and taxable income (Book-Tax Differences - BTD) is an important indicator exploited by many globe researchers for accessing relationship between accounting and tax, tax aggressiveness or tax advoidance … This article uses generalized method of moments - GMM estimate to evaluate the factors affecting the difference between accounting profit and taxable income in the panel data model of listed companies on Vietnam's stock market. The results show that, after excluding the influence of endogenous variables in the model, tax expenses and firm size have a negative effect, while return on assets has a positive effect to the difference between accounting profit and taxable income. Thereby, it can be seen that large enterprises with large profitability ratios are less affected by tax policies and accounting disclosures less affected by tax.