특수관계자 관련 강조사항 문단 기재가 특수관계자 거래와 조세회피와의 관계에 미치는 영향

[Purpose]This study examines the effect of emphasis of matter paragraphs (EOM) of related party transactions (RPT) in an audit report on the relationship between the portion of RPT and tax avoidance. Firms with significant RPT where the auditor should include the EOM in the audit report are likely to have a high level of tax avoidance due to the possibility to use RPT as a tool for tax avoidance. On the other hand, if an auditor further notes the amount or characteristics of the RPT in the EOM, the attention of the stakeholder or the interest of regulatory bodies increases, and there is also a possibility that motivation of tax avoidance of managers decreases. [Methodology]I used 5,851 firm－year samples which RPT is present from 2011 to 2016. I analyzed the relationship between the proportion of RPT and tax avoidance proxy according to Desai and Dharmapala (2006), and analyzed the interaction－effect of RPT and EMP. [Findings]The relationship between RPT and tax avoidance showed a significantly positive relationship. This suggests that the auditor’s statement on the RPT is acting as a risk signal indicating the high agency cost of the company, rather than presenting the disciplinary effect to the manager. [Policy Implications]Results of this study suggest that the EOM on the RPT could be a role of signal for risk of tax avoidance, and that regulatory authorities’ efforts to improve the information value of audit report need to be continued.