세금비용과 비세금비용이 재무보고이익과 세무보고이익의 차이에 미치는 영향 = The Effects of Tax Costs and Nontax Costs on Book-Tax Reporting Differences

다국어 초록 (Multilingual Abstract)

This paper analyzes the effects of financial and tax reporting incentives on the book-tax reporting differences using the data of the Korean listed companies. A simulated marginal tax rate is used as a proxy for tax costs (tax reporting incentives). A corporate ownership type, an inner ownership concentration, a debt constraint, and a dummy variable indicating Korean conglomerates are used as proxies for nontax costs(financial reporting incentives). T I find that firms with high marginal tax rates tends to have higher tax reporting costs, and tends to have larger book-tax income differences. In addition, I find that Korean conglomerate firms, especially conglomerates firms with lower inner ownership concentration, tends to have higher financial reporting costs, and tends to have larger book-tax income differences. Furthermore, higher debt levels result in greater nontax costs on firms that are more financially distressed. These findings conform to the notion that firms make financial and tax reporting decisions with tax costs and nontax costs considerations in mind. Findings from an additional analysis using two separate groups--profit firms and loss firms--conform to the well-known notion that because loss firms in general do not have tax incentives, they increase their book losses during the loss period, i.e., they take a big bath during the period.