기업의 조세회피 수준 조정속도에 관한 연구

Abstract

[Purpose]This study investigates the adjustment of tax avoidance toward the target level among companies listed in Korean capital market. While many previous studies examine various Korean studies on the change in tax avoidance, there is a dearth of evidence on whether Korean firms adjust their tax avoidance accordingly with the target level.
 [Methodology]This study employs the partial adjustment model, which is hugely used in capital structure research, to gauge the speed that firms close the gap between the actual and target cash effective tax rates.
 [Findings]The empirical result presents that Korean firms close the gap between the actual and target levels of cash effective tax rates by 57.8% to 80.1% over three－year period. It also shows that the adjustment speed is faster for firms with actual cash effective tax rate higher than the target level compared with firms having actual cash effective tax rate lower than the target level.
 [Implications]This study indicates that Korean firms have the target level of tax avoidance and actively adjust toward the target level. It also implies that engaging more tax avoidance toward the target level is easier than unwinding previous tax strategies.