시장 경쟁에 따라 조세회피가 기업가치에 미치는 영향

Tax avoidance reduces tax costs and generates non-tax costs. Tax avoidance has an effect on firm value. Market competition is an external governance structure that indicates the level of competition in the industry. Market competition differs by industry. This study analyzes the effect of tax avoidance on firm value according to market competition. In this study, market competition was measured using the Herfindahl-Hirschman Index. Tax avoidance was measured by the method of Desai and Dharmapala(2006). It is found that tax avoidance has a negative effect on firm value. Tax avoidance decreases firm value as the effect of non-tax costs is significant and resource generated from tax avoidance is not used efficiently. It is found that the negative effect of tax avoidance on firm value increases as market competition decreases. As the level of market competition is low, information asymmetry increases. Information asymmetry increases agent cost and private profit of management. Firms in low market competition are less efficient than those in high market competition. Resource generated from tax avoidance is not used efficiently as the market competition is less. Therefore the negative effect of tax avoidance on firm value increases as the level of market competition is low. The results show that the negative effect of tax avoidance on firm value increases as the market competition decreases. Market competition is the indicator of market structure. This study suggests the negative effect of tax avoidance increase as industrial concentration increases.