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http://dx.doi.org/10.5762/KAIS.2017.18.1.231

A Study on the Relevance between Voluntary Information Disclosure and Effective Tax Rate  

Kin, Jin-Sep (Division of Management and Accounting, Pusan University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.18, no.1, 2017 , pp. 231-237 More about this Journal
Abstract
This study examines the relationship between voluntary information disclosure and the effective tax rate using Investor Relation (IR) as the proxy for the level of the firm's voluntary information disclosure, and effective corporate tax rate as the proxy for the level of tax avoidance. This study considers sample data from 1,396 firms listed on the Korea Composite Stock Price Index (KOSPI) from 2011-2014. The results of this study are as follows: Investor Relation (IR) had a positive correlation with effective corporate tax rate. This result got on with the result of additional analysis using extra measurement of effective corporate tax rate. According to these results, we expect that firms featuring greater voluntary information disclosure report enhanced business performance. This study contributes understanding how Investor Relation (IR) affects tax avoidance. We hope that this study can promote the development of capital markets and provide good news to investors for firms that have greater information disclosure.
Keywords
Effective corporate Tax Rate; Investor Relation(IR); Tax Advantage; Tax Avoidance; Voluntary Information Disclosure;
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