• 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 Institute of Internet, Broadcasting and Communication
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• v.23 no.4
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• pp.157-164
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• 2023

This paper suggests O(n²) polynomial time heuristic algorithm for corporate tax structure optimization problem that has been classified as NP-complete problem. The proposed algorithm constructs tax tree levels that the target holding company is located at root node of Level 1, and the tax code categories(T_e) 1,4,3,2 are located in each level 2,3,4,5 sequentially. To find the maximum tax-relief path from source(S) to target(T), firstly we connect the minimum witholding tax rate _minr_w(u, v) arc of node u point of view for transfer the profit from u to v node. As a result we construct the spanning tree from all of the source nodes to a target node, and find the initial feasible solution. Nextly, we find the alternate path with minimum foreign tax rate _minr_fi(u, v) of v point of view. Finally we choose the minimum tax-relief path from of this two paths. The proposed heuristic algorithm performs better optimal results than linear programming and Tabu search method that is a kind of metaheuristic method.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.343-348
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• 2020

So far, research into multinational bank' overseas expansion has focused on foreign direct investment in the financial services industry. However, this study focused its existing theories on multinational banks on decision-making related to the type of overseas advancement of local financial institutions. For research, four environmental factors were considered: the scale of foreign direct investment, the scope of financial services that can be provided according to the rules of the host country, the corporate tax rate of the host country, and the level of development of the host country's banking industry. Through Kotra, data on the total amount of claims from 2010 to 2014 and the regulatory status for the country's financial industries were obtained. Hypothesis are built around theories and survey factors and has been demonstrated through regression analysis. Results show that Korean financial institutions tend to expand as legally independent subsidiaries where the corporate tax rate of the host country is relatively low. Contrary to the previous studies based on the U.S. banking corporates, results show that Korean banks tend to expand in forms of branches to the host countries with high level of banking system development.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.32 no.4D
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• pp.357-366
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• 2012

Construction equipment has applied to depreciation over the years, however, the price index for construction equipment is not properly reflected in existing quantity per unit and the local tax law. Thus, this study shows the analysis of the corporate tax law, the local tax law and business accounting standards, characteristics of the domestic depreciation system and depreciation methods, and the capital recovery factor of construction equipment applying the theory for economic efficiency. It also presents cases of depreciation on the basis of quantity per unit and tax law using straight-line depreciation method and declining balance method. It is proposed that the relations of the application system of permissible period for construction equipment and the existing system be explained and the application system of permissible period for construction equipment be imposed. Furthermore, it proposes the development of depreciation tables of construction equipment monthly expenses based on the domestic price index and applications. In addition of that, it proposes the analysis of pros and cons of the methods suggested and application limits of the study and subsequent improvement plans. This study should reflect more rational and objective reality in quantity per unit and tax law.

• Journal of Family Resource Management and Policy Review
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• v.24 no.4
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• pp.1-20
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• 2020

This study aims to improve the family friendly certification system by analyzing the actual experience of family friendly certified companies with the certification's incentives and their demand for new incentives. We analyzed 2018 survey data of family friendly certified company incentives and interviewed representatives from 9 family friendly certified companies. First, the use of incentives differs according to the level of corporate classification, number of employees, industry, certification continuation training, and incentive impact. Current family friendly certification incentives indicate that the utilization rate of incentives is high when small and medium sized enterprises (SMEs) with less than 300 employees have newly received family friendly certification. Second, the use of the certification mark significantly differs by industry, certification duration, and incentive impact. Interviews with the companies' family friendly certification managers revealed that the incentives that companies use mainly are the Public Procurement Service bid points and priority immigration service. Large corporations hope for strong incentives, such as the National Tax Service's deferred tax investigation, interest rate cuts for bank loans, and corporate tax cuts. Lastly, the family friendly certification mark is a representative incentive used by 60% of family friendly certified companies. For the qualitative growth and stabilization of the family friendly certification system, the family friendly certification mark should be improved to become a more attractive incentive.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.551-559
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• 2021

The maturity structure of corporate debt is one of the significant financing choices that a firm must make simultaneously while deciding how to finance its operational and investment decisions. Even though the capital structure is one of the scrutinized topics of interest in the corporate finance literature, scarce studies have investigated corporate debt maturity, even less so in the context of emerging markets. The choice of a suitable debt maturity structure is exceptionally relevant for firms. It can enable them to avoid mismatch by aligning assets in line with liabilities, addressing agency-related problems, sidestep the ill effects of cost of capital, and signaling the firms' earning quality and value. The study investigates the firm-specific and macroeconomic determinants significant for the debt maturity structure of Vietnamese corporate firms. A sample of 722 non-financial firms listed on the Ho Chi Minh and Hanoi Stock Exchange in Vietnam from 2007 to 2018 was taken to test the hypothesis. The study's methods fixed effects panel data analysis provides empirical evidence that firm size, firms' quality, liquidity, leverage, asset maturity, tax impact, and macro variables are significantly related to the debt maturity structure.

• Management & Information Systems Review
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• v.30 no.3
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• pp.169-190
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• 2011

Recent academic studies have investigated book-tax differences as an indicator of earnings management. Tax accounting texts claim that the differences between pre-tax financial reporting earnings and taxable income can provide information about current earnings, and the large differences between book and taxable incomes are an indicator of low-quality financial reporting earnings. This study investigates the effect of internal control system over book and tax difference using the KOSPI and KOSDAQ firms from 2006 to 2008. The empirical findings are consistent with a weakness of internal control system being associated with higher book-tax difference. That means a firm which has material weakness in the internal control system allows for more malpractice. In addition to this, If the managers tries to the efficient tax decrease strategy, book-tax difference can be large. Which in turn leads us to observe a positive relation between the weakness of internal control system and intensity of book-tax difference. Overall, we interpret this evidence as indicating that the failure of the internal control system can effect not only investors and creditors but also tax authorities. And It emphasizes that a more effective internal control system linked with sound corporate governance.

• Journal of the Korea Convergence Society
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• v.9 no.2
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• pp.183-190
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• 2018

We examined the level of Earnings Management of Socially Responsible Investment(SRI) Corporate by using Book-Tax Difference(BTD). We used 2,718 sample data from 2011 to 2016 on Korea Stock Exchange. In short, the result of this study's is as followed. Socially Responsible Investment(SRI) have a negative relevance with Book-Tax Difference(BTD). Therefore this study can support that a firm has a high level of Socially Responsible Investment(SRI) will have the better the Quality of Accounting according to our study. This study contributes as follow. we can confirm that the more Socially Responsible Investment(SRI) the better Quality of Accounting Information. And we hope that our study can be helped development of sound capital market and give a useful information to investors on firms that has a high level of Socially Responsible Investment(SRI).

• Journal of Digital Convergence
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• v.17 no.2
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• pp.73-80
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• 2019

This study analyzed the relevance between investment horizons of foreign investors and Book-Tax Difference. To do this, we measured investment horizons of foreign investors as the investment-turnover of foreign investors. We use the sample of 3,025 firm-year Korea listed companies belonging to non-financial corporate sector during 2011-2016. The results of empirical analyses show that investment horizons of foreign investors has a negative relevance with Book-Tax Difference. This result indicates that the firm have a long-term foreign investors has a good Accounting Earning's Quality than the firm have a short-term foreign investors. This study is expected to provide useful information by suggesting the need for more incentive for the long-term foreign investors. And Our Study has a contribution that this study extended prior research on foreign investors by utilizing investment horizons of foreign investors.

• 한국벤처창업학회:학술대회논문집
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• 2023.11a
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• pp.69-71
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• 2023

The Modigliani-Miller Proposition II (MM2) is a cornerstone in the field of corporate finance, positing that in a frictionless environment with perfect capital markets, the cost of equity capital is linearly related to a firm's leverage. This paper critically re-evaluates this proposition, particularly examining the determination of the cost and value of equity. We find that under specific circum-stances, especially when the value of a tax shield is influenced by endogenous variables, the cost and value of equity may be ambiguous. This calls into question the universal applicability of MM2. Our research offers new perspectives on the theoretical underpinnings of financial management and underscores the significance of situational factors in the practical application of these theories.