장단기 조세회피활동과 경영자보상

The relationship between tax avoidance activity and executive compensation can be different on whether tax avoidance is done only in the short term or not. If tax avoidance is done in the long run, the risk of tax avoidance can be increased even more and firm value can be decreased. If shareholders think that long－term tax avoidance decreases firm value, they would set differently the relatinship between long term tax avoidance and executive compenstion with short term one. We classify short term tax avoidance and long term one, examine the relationship between tax avoidance and executive compensation. For the analyses, the sample consists of 2,709 firm－ years(non－banking firms) of listed on Korean Stock Exchange during 2005 to 2013. We use three short term tax avoidance measures, two long term tax avoidance measures and an average cash compensation per executive. The result shows that there is the positive relationship between short term tax avoidance and executive compensation, on the other hand, there is the negative relationship between long term tax avoidance and executive compensation. This means shareholders assess short term tax avoidance positively, but not about long term tax avoidance.