Acta Univ. Agric. Silvic. Mendelianae Brun. 2018, 66, 1469-1475
Published online 2018-12-19

Relationship Between Deferred Tax Category and Stock Prices in Pharmacy

Petr Habanec

Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

The paper deals with relationship between stock prices and deferred tax category. Joos, Pratt and Young provided evidence that book‑tax differences are correlated with earning management. In this paper is confirmed negative relationship between stock prices and deferred tax. The relationship is assessed on sample of companies making business in pharmacy (CZNACE‑C‑21). The relationship between deferred tax category and stock prices is assessed on a sample of companies in the time series from 2005 to 2015. Sample consists of companies listed on Frankfurt stock exchange and reporting in accordance with international accounting standards IAS/IFRS. The stock prices dataset is based on Morningstar database. The results are compared with the results of author ’s previous study concerning the deferred tax materiality.


This paper was supported by Internal Grant Agency [PEF_DP_2018007] Mendel University Brno.


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