Abstract

The high compliance with tax regulation paves the investor out to calculate the expected return precisely in the following period, and it is a new measurement of high-quality financial reporting. There was one phenomenon about dividend policy, where the strong willingness of management to implement the high yielded dividend a standard corporate policy for smoothing the intensity of the internal conflict. The concept of the information usefulness of financial reporting pushes management to carry out all regulations legally, which the investor had the highly ultimate capability of the investor in detecting the opportunistic motive in tax accruals. By doing all observations in the listed manufacturing companies, so that the testing shows that the investors have a positive perspective on high compliance by designing the tax management more “prudent,” the positive movement of market price had reflected that the aggressive tax accruals have negatively stimulated the investor’s perception. It refers to the high fluctuation of agency as a subsequent effect will be a distortion in measuring the prospect. The leading management’s priority is to obtain the low internal conflict related to the cash flow’s liquidity. The decision tree and Bayes Teorema have supported this result as an implication of game theory, including the artificial intelligence modeling in designing the tax management. Explicitly, the high compliance has illustrated actual earnings in the future, so dividend policy can be fixed out as a mandatory obligation to level up the transparency level, which is a valid indicator to estimate the future performance.

Keywords: Tax Accruals Quality, High Yielded Dividend, Future Market Value.