The purpose of this study is to examine the effects of relation between defered tax and financial ratios of business value. The results of this empirical study are as follows. First, when compare financial value and ratios before and after the introdu...
The purpose of this study is to examine the effects of relation between defered tax and financial ratios of business value. The results of this empirical study are as follows. First, when compare financial value and ratios before and after the introduction of deferred tax, generally financial values and ratios were favorable after its introduction. Second, both deferred tax and debits have any relations with business value. Third, both deferred tax credits and debits shows negative relation with current ratio and positive relation with cash flow from operation activity. Fourth, current ratio that influence by deferred tax credits, have any relations with business value and cash flow from operation activity have effect in 2000. This result was reversed with deferred tax debits. Finally, the introduction of deferred tax was not effected the business value, and the financial ratios that influence by deferred tax has little influence the business value.