투자－현금흐름 민감도에 따라 조세혜택이 투자에 미치는 영향은 달라지는가?

The objective of this study is to examine whether the effect of tax benefits on investments depends on the sensitivity of investment－cash flow. With the recent increase in domestic companies’ internal reserves, the government has implemented various tax policies to outflow internal reserves. However, corporate investment spending is not affected solely by tax policies. It is a complex decision－making process that is affected not only by external factors such as external uncertainties, but also by the level of the firm’s internal funds. Therefore, while the government’s tax policy to promote a firm’s investment may increase internal cash flows, tax benefits will not necessarily lead to an increase in investment if the firm is less sensitive to investment of internal cash flows. Consequently, the effect of tax benefits on investments is expected to vary depending on the sensitivity of investment－cash flow. Empirical analysis shows that tax benefits for firms with high sensitivity of investmentcash flows have a significantly positive impact on investment expenditure. We also find that firms with high investment－cash flow sensitivity have a greater impact on investment expenditure from tax benefits than those with low investment－cash flow sensitivity do. These results imply that the effectiveness of tax policy to promote corporate investment may vary depending on the firm’s sensitivity of investment－cash flow. Our results suggest that the government needs to consider various factors that affect the decision－making process of a firm’s investment expenditure when it establishes a tax policy to promote corporate investment.