기업이 속한 산업의 경쟁정도 및 진입비용이 접대비의 타비용 대체에 미치는 영향

This study examines how the degree of industrial competition and cost of entry could affect corporate decisions on the spending of entertainment expenditures. This study further test empirically that the firms may transfer the entertainment expenses to alternative expenses accounts, such as welfare expenses, etc. The empirical results of this study are as follows. First, firms with high degree of industrial competition and low cost of entry results in increasing the spending of entertainment expenditures. These results are as expected, and imply that a higher degree of industrial competition and lower cost of entry is associated with a higher level of entertainment expense. Second, The changes of entertainment expenses showed significantly positive relations to the change of welfare expenses. This implies a possibility that the firms with more the spending of entertainment expenses may transfer the entertainment expenses to alternative expenses accounts, such as welfare expenses. In spite of the firm with more degree of industrial competition is to increase the spending of entertainment expenditures, this can be interpreted into a phenomenon that the limitation of entertainment expenses in excess of corporate caused by standardized sales under current tax law. Transferring the entertainment expenses to alternative expenses accounts has caused distortion of financial reporting, and this could have violative consequences for usefulness of the accounting information. In order to prevent this matter, limit amount of entertainment expense in current tax law must be revised.