The Effect Of Book-Tax Differences And Market Concentration On Profit Persistency

ABSTRACT: Indonesia’s economy grew slower in 2019, because at the end of 2019 the world was hit by theCovid-19 pandemic. The phenomenon of the Covid-19 pandemic caused the government to implement largescale social restrictions (PSBB), which made people’s mobility drop drastically. This led to a drop in companyrevenues and profits, particularly in the transportation sector. This phenomenon causes the persistence ofearnings to be questioned because profits with fluctuations decrease steeply in a short time. The purpose of thisstudy was to determine the effect of book-tax differences and market concentration on earnings persistence. Thepopulation of this study is the transportation sector companies listed on the Indonesia Stock Exchange in 2017-2019. Companies in this study were selected using purposive sampling technique. The sample used is 12transportation companies listed on the IDX. The analysis technique used is multiple linear regression analysis.The results of the analysis show that Book-tax differences have a negative and significant effect on the earningspersistence of transportation companies. Market concentration has a positive and significant effect on thepersistence of profits for transportation companies.

Keywords -book-tax differences, market concentration, earnings persistence.