법인세율의 인상은 회계보수주의에 영향을 미치는가?

[Purpose] Korean government recently raised the corporate tax rate to increase revenue from tax payment and to avoid governmental financial losses. Specifically, since 2018, the highest tax rate has been raised from 22% to 25% for firms that exceed the tax base of 300 billion Korean won. In this study, we investigate whether the increased tax rate affects the level of accounting conservatism. [Methodology] If accounting conservatism is manipulated for the purpose of avoiding tax payment, it can be assumed that the level of accounting conservatism will be relatively stronger (or weaker) than immediately after (or before) the 2018 tax increase. Using firms listed in Korean Stock Exchange, the study investigates the change in the level of accounting conservatism around this corporate tax rate increase. [Findings] Consistent to the ex－ante prediction, the current study finds that the level of accounting conservatism is higher in post－tax rate increased period than the pre－tax rate increased period. However, the positive relationship between tax rate increase and accounting conservatism incrementally declines for firms exceeding the 300 billion of tax base, those which actually fall within the scope of the corporate tax increase. [Policy Implications] To summarize, the results of the study document that unlike the findings from previous studies, the change in corporate tax rate does not affect the discretionary adjustment of accounting conservatism, especially for large firms. This suggests important policy implications to regulators.