Deferred Tax, Earning Persistence, and their effects on Firm Performance: Evidence from Indonesia

Abstract

The purpose of this study is to evaluate and analyse the impact of deferred tax on financial performance, with earnings persistence serving as a moderating variable. The population of this study includes all tourism, hotel, and restaurant enterprises registered on the Indonesia Stock Exchange (IDX). Purposive sampling is the approach used for sample selection. Using this strategy, 77 observations were gathered. Multiple Linear Regression was the analysis strategy employed. This study shows that deferred taxes have no effect on financial performance. However, earnings persistence has an impact on company performance.