기업의 이익조정 유형과 조세회피: 적자회피 기업과 Big bath 기업을 중심으로

Abstract

The purposes of this study are to verify the influence on tax avoidance according to the types of earnings management with manufacturing listed company. This study started in the view point of total cost saving strategy will be performed by the CEO. Company’s total costs are consist of tax cost and non-tax cost and CEO will consider which kind of cost is more powerful in the total cost saving. Thus we focused on the types of earnings management will affect the tendency and the amount of tax avoidance. More specific, loss avoidance company with larger size earnings management has higher possibility to accept much more pay tax cost compare to loss avoidance company with comparatively smaller size earnings management. Because the company intend to manipulate large amount of earnings has to pay more tax cost in the result of increase of taxable income. Also Big bath company reports minimized current year net income by using possible cost and expense which will realize after next yeat normally in order to realize maximum earnings in the next year. Minimized current year net income of Big bath company makes lower or minimized tax cost. But because Big bath company is not loss avoidance company or loss taking company, we expect that Big bath company has different level of tax paying tendency. Therefore we would like to confirm the influence on tax avoidance in accordance with the size of earnings management of Big bath company. To see the purposes, we estimated non-discretional net income (NDNI) by using discretional accrual (DA) and performance matched discretional accrual (PMDA) in accordance with adjusted Jones model. In addition, to acquire the robustness of this study we adopted the method used in the study of Dechow et al. (1995) and Kothari et al. (2005) in order to estimate non-discretional net income (NDNI). Also we used Desia and Dharmapala (2006) model to estimate tax avoidance which is most popular method in the prior studies. And we have done empirical analysis by using loss avoidance group and Big bath group classified in the basis of mark and size of non-discretional net income (NDNI) and net income (NI). The results of this study are follows. First, company with the larger loss avoidance size has the less tax size. In other words, the CEO intend to achieve net income instead of net loss for the purpose of loss avoidance will be take more burden of tax increase. Because CEO with the company like that would accept tax increase for the decrease of non-tax expense and personal motivation. The increasing of usefulness from loss avoidance is larger than the decreasing of usefulness from further tax paying, CEO will pay more tax for loss avoidance. Second, with the study of Big bath company between the size of earnings management and the size of tax avoidance, the size of earnings management makes positive (+) effect to the size of tax avoidance. This result says that CEO with the Big bath company is willing to minimize tax payment through active tax avoidance strategy. The results of this study in the two types of company loss avoidance and Big bath are contrary to each other. This means that the purposes of earnings management make influence on the attitude of tax avoidance. The company intend to avoid net loss is willing to pay the tax regardless of amount but Big bath company is not to pay the tax. Because the purpose of earnings management of Big bath company is to minimize the reporting earnings without further tax paying. This study has contribution in the field of relationship between earnings management and tax avoidance by using the types of earnings management such as loss avoidance and Big bath.