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Abstract
The objective of this paper is to analyze the advances in the empirical literature on the information provided by accounting-tax differences. The paper focuses on total BTDs because they represent the most comprehensive metric of these differences. Ten empirical studies published between 2014 and 2024 were selected, which use total BTDs as an independent variable. A qualitative analysis was conducted on the data source, the use of dependent variables, the results of the empirical studies, and the measurement of the variables. The results show that there is persistent interest in studying the information provided by accounting-tax differences to the market, especially regarding the persistence of the outcome, although new metrics for this outcome are proposed. In addition, some studies evaluate whether BTDs provide information about the risk and value of firms. The study of the information provided to creditors also continues, adding new variables, such as capital structure. However, interest in studying the information provided to tax authorities regarding aggressive tax planning has declined. It is observed that, due to the lack of data, both total book-tax differences and several dependent variables are estimated using different proxies. Future studies should evaluate these metrics to reduce heterogeneity. It is also necessary to assess the differences in the information provided by book-tax differences based on their sign (negative or positive), as well as their two components: temporary differences and permanent differences.
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