01659nas a2200157   4500008004100000245010200041210006900143260002300212490000700235520106100242653001501303100001701318700002001335700001801355856012801373       2011                        eng d00aEmpirical Evidence on the Impact of Book-Tax Differences on Divergence of Opinion Among Investors0 aEmpirical Evidence on the Impact of BookTax Differences on Diver  aSarasota, FLc20110 v333 aIt is well known that the objectives of financial accounting and tax accounting sometimes conflict, resulting in book-tax differences (BTDs). In this study we test for associations between measures of BTDs and measures of market participants’ uncertainty regarding the information conveyed in financial reports. The measures of market participant uncertainty are: (1) share turnover, (2) analyst forecast dispersion, and (3) stock return variance. We find positive associations between levels and variability of total BTDs and the three measures. After disaggregating BTDs into their permanent and temporary components, we find that both are positively associated with market uncertainty, although the permanent component of BTDs is generally more strongly and consistently associated with measures of uncertainty than is the temporary component. We interpret these results, in part, as indicative of the possible effect of uncertainty contained in BTDs, especially permanent BTDs, on the precision of the information conveyed in the financial statements10aAccounting1 aMoore, Jared1 aComprix, Joseph1 aGraham, Roger  u/biblio/empirical-evidence-impact-book-tax-differences-divergence-opinion-among-investors-0