CORPORATE REACTION ON NEW TAX LAW:CASE STUDY FROM INDONESIAN CAPITAL MARKET.

The purpose of this study was examine property and real estate company reaction on new tax law. The author uses window period two years before and two years after implementation of new tax law. Population of this research is property and real estate companies listed on Indonesia Stock Exchange. Thirty two companies are taken as sample. The result of Paired Sample T-Test shows that the discretionary accrual before and after implementation of new tax law statistically different. This implies that property and real estate companies are indicated take earnings management