기업수명주기에 따른 조세회피 성향

Firm life cycle provides information related to the characteristics of firm. The stage of firm is classified according to the situation and characteristics of firm. As the situation and characteristics of firms vary according to firm life cycle, firms should consider firm life cycle making strategies and decisions. As business strategy is likely to vary based on firm life cycle, firm’s propensity to engage in tax avoidance is likely to vary according to firm life cycle stage. This study examines the propensity to engage in tax avoidance according to firm life cycle. Firm life cycle consists of the growth stage, the maturity stage and the decline stage. It is found that firms in the growth stage have low propensity to engage in tax avoidance. In order to expand market share, firms in the growth stage focus on business strategy rather than tax strategy. Also, with emphasis on the image and reputation of firm, the management in the growth stage consider that it is not desirable to reduce financial transparency due to tax avoidance. Firms in the growth stage are likely to have low propensity to engage in tax avoidance focusing on business strategy and reputation. It is found that firms in the decline stage have high propensity to engage in tax avoidance. It is necessary to improve cash flow as operating cash flow decreases in the decline stage due to decrease in profit. Also, It is necessary to enter into new industry or growth industry as market share declines in the decline stage. It is difficult to increase profit through business strategy in the decline stage. Firms in the decline stage are likely to have high propensity to engage in tax avoidance increasing cash flow through tax avoidance. The results show that the propensity to engage in tax avoidance varies across firm life cycle stages. The results suggest that firm life cycle should be considered as factor influencing tax avoidance.