This study investigates whether institutional ownership levels are associated with levels of and time-series variability in book-tax differences (BTDs). Firm and year fixed-effects regression results suggest that institutional ownership is negatively associated with total, permanent, and...

It 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...