• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.105-112
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• 2021

This study aims to find empirical evidence of the effect of increasing income on the potential transfer of wealth from manufacturing companies that go public to stakeholders. Earnings management with an accrual approach with the Modified Jones model is an identifier of the availability of earnings management practices, without paying attention to both positive and negative symbols. The interpretation of the results of the discretionary accrual measurement between positive and negative symbols has different meanings. Positive discretionary accruals indicate that management uses income-increasing techniques. Meanwhile, negative discretionary accruals indicate that management uses income-reducing techniques. Income-increasing techniques tend to be viewed as opportunistic behavior of managers. This study used 111 data from manufacturing companies listed on the IDX (Indonesia Stock Exchange) from 2015-2018. Path analysis is used to test the hypothesis. The results of this study are in line with the point of view of management strategy, increasing income is used as a way to transfer potential welfare from the company to stakeholders. Social welfare (tax) and managerial remuneration are proven to be mediators in increasing the effect of increasing income on future company value. Further research can complete the potential welfare transfer against the shareholders related to income-increasing strategy.

• Asia-Pacific Journal of Business
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• v.12 no.1
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• pp.195-208
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• 2021

Purpose - The primary objective of this paper is to empirically examine whether the engagement of socially responsible activities in corporations affect the tendency of tax-avoidance by using the sample of Korean companies. We are particularly interested in Chaebol-affiliated firms, which are a special type of Korean conglomerates. Design/methodology/approach - This study is based on a sample of 5,496 firm-year observation data from 2011 to 2017 by using the ESG ratings from the Korea Corporate Governance Service(KCGS), a ESG rating agency in Korea. For our analysis, the firms were separated into 1,547 Chaebol-affiliated firms and other 3,949 firms. All financial and firm data were extracted from Fn-guide, which provides financial information for Korean listed firms. Findings - We find that CSR is generally positively related to the effective tax rate, which indicates a lower level of tax avoidance for more socially responsible firms. In particular, a positive relationship of social score with GAAP ETR was observed. Research implications or Originality - We find that the positive relationship is robust to the group of chaebol and non-chaebol affiliates unlike extant literature.

• The Journal of the Convergence on Culture Technology
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• v.6 no.1
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• pp.367-380
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• 2020

Recently, Korea's economy is facing a difficult economic situation due to sluggish domestic demand, low corporate investment and a cliff in youth employment. In order to overcome this problem and turn the economy into a virtuous circle, the government has introduced and implemented various economic policies. In this study, the effects of the corporate accumulated earnings tax system included in the 2014 tax code revision were to be verified. The validity of the business income was verified and analyzed using the financial data of the entity as to whether the income of the entity was being circulated to household income. First, validating the validity of whether the income tax on non-current income affects the level of an entity's investment, the results showed significant negative effects at a significant level of 5 per cent. Second, the analysis of whether the return tax on corporate income is affecting management decisions that increase the level of dividends for an entity has identified a metaphorical positive relationship. Third, it was confirmed that the income tax on uncurrency income does not have a significant effect on the increase in wages for workers. The result is presumed to be the main reason for the increased uncertainty in the economy and business environment.

• Management & Information Systems Review
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• v.23
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• pp.157-174
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• 2007

Concerning this nation's M&A system, it is expected that standards of limitation on ownership is considerably modified and alleviated. This would allow companies to freely merge with each other, raising the efficiency of the whole national economy and ultimately benefiting all economic subjects. Another goal of business merger lies in adjusting net income or reducing tax amount. The income and the amount are to be financially reported. If merger between companies does not create any synergy effect, but just contributes to net income increase or tax reduction for the purpose of the parties' financial reporting, it might distort a rational distribution of wealth over all facets of economy. Merger whose goal is to create the most desirable synergy effect should be positively encouraged, but that whose goal lies in tax avoidance needs to be strongly restricted. Thus the purpose of this study was to find how to improve this nation's merger-related taxation system. For the purpose, this researcher investigated problems of existing tax supports to merger, which meets related taxation requirements, especially in terms of liquidation income, appraisal profit from merger, fictitious dividend and requirements for taxation. Among the problems, the study found, the biggest thing was that liquidation income or deficit carried forward, if any, is subject to be prior deducted from surplus, so the income is likely to generate. To raise the consistency of this nation's taxation on business restructuring, existing local systems in regard to merger, division, investment in kind and dividend-exclusion method need to be reconsidered following the introduction of consolidated taxation system.

• The Journal of the Korea Contents Association
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• v.10 no.10
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• pp.326-333
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• 2010

The purpose of this study is to find out the effects of tax officials' perceived self-leadership on their empowerment and organization commitment, improve the effectiveness of human resource management of tax organizations, and provide measures for effective organization management. The study results show that the more their self-leadership improves, the more their empowerment improves. Firstly, the reason why their self-leadership has a positive influence on empowerment is that they set their own purpose about their task by themselves, make efforts to achieve the goals, and do their job with optimistic and constructive attitude. Secondly, the study results that their empowerment has a positive influence on organization commitment show that organizational members with high-level empowerment attach significance to their work and it makes their organization commitment high. To maximize organization performance, tax officials should recognize their work's value, meaning, and importance by himself, be equipped with sufficient knowledge for their work, apply their leverage and control in their job, have their self-determination, and improve their organization commitment.

• Korean Journal of Construction Engineering and Management
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• v.17 no.4
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• pp.66-75
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• 2016

Korean Government is implementing green remodeling projects on existing buildings and structures in a way of promoting low carbon green growth. However, the current regulations and systems do not clearly define the scopes and contents of the green remodeling. Also, the lack of the inducement measure is another reason of the low engagement of the private enterprises to the green remodeling business. Therefore, this study proposes a tax exemption plan to promote green remodeling business implementation, with the consideration on practical applicability. And the proposed plan was applied to the green remodeling pilot project case in2 014 and the effect was quantitatively analyzed. The result is expected to be used as a base data to improve the tax exemption benefit system to invigorate green remodeling later.

• The Korean Journal of Financial Management
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• v.8 no.2
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• pp.165-208
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• 1991

This paper develops an intertemporal general equilibrium model of asset pricing with taxes under the noisy and the incomplete information structure and examines theoretically the stochastic behavior of general equilibrium asset prices in a one-good, production, and exchange economy in continuous time markets. The important features of the model are its integration of real and financial markets and the analysis of the effects of differential tax rates between ordinary income and capital gains. The model developed here can provide answers to a wide variety of questions about stochastic structure of asset prices and the effect of tax on them.

• Health Policy and Management
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• v.22 no.4
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• pp.538-560
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• 2012

This study tried to find out the level of national health expenditure and associated factors in the OECD countries and then to derive lessons for Korea's health financing based on the cross-national comparison. As a result, Korea's health expenditure in 2010(7.1% of GDP) accounted for 74.7 percent of the OECD average and ranked as countries to spend less on health. At the same time, the socio-economic indicators such as GDP per capita, elderly population ratio and the total tax revenue to GDP also remained between 72 ~ 82 percent of the OECD average. The public share of health financing(58.2%) was relatively lower than those of other countries. However the health expenditure and the public share have grown 1.9 ~ 2.4 times higher than the OECD average over the past decade. According to the quantitative analysis, countries with relatively high income and elderly population turned out to have high health expenditure. Whereas, an inverse relationship was found between the total health expenditure and the public funding. It was estimated that the value of national health expenditure to GDP decreases 0.083 when the rate of public funding increases 1 percent point. Further, the share of public funding was affected positively by the total tax burden. Based on these findings, this study suggests that the sustainable spending on health and alleviating households' direct burden could be ensured by enhancing the share of public funding along with adjusting the tax burden of the people.

• Journal of Industrial Convergence
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• v.20 no.12
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• pp.145-153
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• 2022

This study is an empirical analysis of the major factors influencing the globalization level of Chinese public enterprises. Based on previous research, we conducted a regression analysis using the transnational index as a dependent variable and export tax refund, exchange rate, human resources, innovation ability, asset management ability, loan ability, corporate development stage, global deployment ability, etc. as independent variables. As a result of the empirical analysis of this study, it was found that export refund (E_tax) and exchange rate (E_rate) have a statistically significant effect on the external influencing factors of globalization. Human resource capabilities (Edu, O_hunan), innovation capability (R&D), and financing capability (Finance) were found to be important internal influencing factors for the globalization of public enterprises. The role of the government in establishing the strategy of SOEs should be maintained at the level of guidance and it should provide guidance so that the autonomy of SOEs is not restricted as the role of the government is separated from the government's compulsory management and supervisory functions, leading to excessively compulsory management.

• Management & Information Systems Review
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• v.29 no.3
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• pp.71-96
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• 2010

This article firstly reviewed Permanent Established(PE) concept of OECD and UN model tax treaty and compared it with that of Korean Corporate Income Tax Law(CITL). The various factors regarding profit like ways of deciding the local source profit, scope and calculation method which will be imputed to PE were also reviewed. Based on above, standard PE judgement basis and calculation method of local source profit were also studied by using actual cases in foreign corporation which performs plant construction & sales in Korea. Accordingly to properly solve the conflict regarding international tax and to protect the tax authority against the foreign corporation in Korea, by standing on equality, I now propose followings for the better concept of PE in Korea. Firstly, the article that a building site or construction or installation project constitutes a PE only if it lasts more than 6 months should be modified to reflect OECD model convention's criteria of 12 months. Second, the scope of 'subordinate attorney' which is regarded as PE under CITL is now including 'holding-delivery attorney', 'order attorney', and 'assurance attorney' as well as 'contract attorney'. This is overly limit the activities of foreign corporation. It had better be loosened only to include 'contract attorney' as OECD provisions. Third, the CITL limits the cases of preparatory and/or auxiliary place which is not regarded as PE, thus limit the foreign corporations' business by expanding the concept of PE. This had better be eased. Fourth, in deciding the amount of local source profits, the CITL stipulates to split the profits by the relevant contribution of transaction parties through 'profit split method'. To solve the conflict, the ways of profit split must be better clarified through providing object and detailed standard and basis.