조세회피 측정에 대한 새로운 고찰 : 손실기업의 조세회피를 어떻게 측정할 것인가?

We examine whether cash effective tax rate(CETR) is appropriate as a measure of tax avoidance by comparing Henry and Sansing(2014) proxy(HS). CETR approaches the statutory tax rate according to the magnitude of pre-tax income. And related studies using CETR delete or winsorize their sample. These are related to CETR measurement method. CETR can't be calculate when pre-tax income is negative. Also, CETR is winsorized the range of zero to one. But it is difficult to determine in advance which firms are meaningful in measuring tax avoidance. In this situation, HS assume that all sample firms are subject to tax avoidance. They indicate that two problems of CETR. First, high pre-tax income biases CETR towards the statutory tax rate. Second, related studies using CETR delete or winsorize many sample. So HS suggest an alternative tax avoidance measure to improve two problems of CETR. Therefore, the goal of this study is to compare a new tax avoidance measure of HS to existing tax avoidance measure in Korean listed companies. We find that more profi표 firms engage in greater levels of tax avoidance as suggested by HS. The results shed light on the importance of measure on tax avoidance.