비용항목을 통한 이익조정(법인세율 인하가 원가행태에 미치는 영향을 중심으로)

The objective of this study is to investigate earnings management by using expenses focusing on corporate tax rate reductions which affect manager’s decision making process. This study analyzes and compares firms’ cost behaviors in the years right before corporate tax rate is reduced(year 2001, 2004 and 2008), and the years after it is reduced(year 2002, 2005 and 2009) and examines as to whether managers avoid and evade corporate tax by altering the taxable year of cost through manipulating expenses. The findings are as followed: In the years before the corporate tax rate is reduced, total cost, cost of goods sold and Selling general and administrative expense, Selling general expense, Selling administrative expense and labor cost with respect to sales become less anti-sticky, and expenses are shown in a pre-recognized cost behavior. In the years the corporate tax rate is reduced, however, total cost, cost of goods sold and Selling general and administrative expense, Selling general expense, Selling administrative expense and labor cost with respect to sales become anti- stickier. Based on these findings, it is concluded that managers tend to manage earnings to avoid and evade corporate tax by pre-recognizing expenses in the years the corporate tax is reduced. The contributions are as followed: Firstly, it is one of the few studies which analyzes managers’ incentives of earnings management and strategic tax behaviors from the cost point of view. Secondly, it provides a new perspective on costs discretionarily used by managers through investigating the links to total sales, Selling general and administrative expense, and labor costs. Thirdly, unlike previous studies it relates cost behavior to the tax strategy and introduces the new direction in the field of accounting. Lastly, it is expected to support policy makers and stakeholders in further understanding corporate tax reduction policies.