조세전략 지속성이 이익 지속성에 미치는 영향

[Purpose]This study examines whether sustainability of tax strategy affects earnings persistence. The continuous tax strategy implies that the volatility of the tax burden is constant rather than the absolute size of the tax burden. Therefore, it can be seen that the sustainability of the tax strategy is high when the volatility of the tax burden is low. [Methodology]The sustainability of tax strategy measures as a coefficient of variation of the annual cash effective tax rate for the current and past four years according to McGuire et al.(2013). The sample of the firm－ year is the non－financing firms, which was listed on the securities market from 1999 to 2016. The number of samples used in the analysis is 2,966. [Findings]The results of empirical analysis show that even if income volatility is controlled, income sustainability increases as the sustainability of tax strategy increases. These results show that the sustainability of the tax strategy affects the prediction of the future earnings. In addition, we analyzed the effect of sustainability of tax strategy on earnings persistence after dividing the net profit before income tax expense into operating cash flow and accruals. As a result, the sustainability of the tax strategy shows that the cash flow and the accrual increase the profit sustainability. [Implications]As a result of this study, it can be seen that the sustainability of the tax strategy of the corporation reflects not only the information effect on the earnings persistence but also the manager’s expectation about the future profit. This study examines the impact of tax strategy sustainability on earnings persistence, not the absolute amount of tax avoidance. In particular, it is meaningful to prove that tax strategies are important in forecasting future earnings.