The impact of Taxable Income on Stock Return: A Case Study of 45 Liquid Stocks on the Indonesian Stock Exchange

DOI

10.2991/978-94-6463-809-7_3How to use a DOI?

Keywords

Taxable Income; Book Income; Stock Return

Abstract

The Enron case, where the company reported substantial earnings yet avoided income tax payments, highlighted the importance of taxable income as a key indicator in evaluating earnings quality and stock returns. Studies suggest that earnings manipulation can stem from timing discrepancies in accounting entries. This research examines how variations in taxable income affect stock returns, using a sample of forty-five highly liquid stocks listed on the Indonesian Stock Exchange (IDX). By focusing solely on temporary adjustments and omitting permanent book income changes, this study sheds light on the relationship between taxable income and stock performance.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sutedjo Sutedjo
PY  - 2025
DA  - 2025/08/13
TI  - The impact of Taxable Income on Stock Return: A Case Study of 45 Liquid Stocks on the Indonesian Stock Exchange
BT  - Proceedings of the Thirteenth International Conference on Entrepreneurship and Business Management UNTAR 2024 (ICEBM 2024)
PB  - Atlantis Press
SP  - 19
EP  - 23
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-809-7_3
DO  - 10.2991/978-94-6463-809-7_3
ID  - Sutedjo2025
ER  -