Abstract: Using the samples of Chinese A-listed companies from 2008 to 2013，this study investigates the relationship between book-tax differences (BTD) and abnormal book-tax difference (ABTD), earnings management (EM) by Logit Regression's calculating model. Meanwhile, this study shows that both the negative aggregated book-tax differences (BTD-) and the negative abnormal book-tax differences（ABTD-）are significantly associated with earnings management (EM).Also, this study provides evidence of the aggregated book-tax gap becomes wider than before, with the implementation of CAS18. In addition, according to the accounting information demanders’ perspective, this research indicates that the book-tax differences are the much more reliable index to distinguish the qualities of earnings management in Chinese-listed companies. Our study aims to provide a certain theoretical and practical support, which could offer assistance to the tax department for more effectively identifying the tax avoidance of enterprises.

Key words: CAS 18, book-tax differences, earnings management