공격적 세무 보고와 조건적 보수주의의 관계

[Purpose]This study analyzed the effect of accounting conservatism on tax aggressiveness. While existing research mainly focused on the impact of greater tax avoidance propensity on the opacity of financial reporting, the study was expanded to include the impact on accounting conservatism. [Methodology]Based on the effective tax rate, the bottom 20% of ETRs is regarded as aggressive tax reporting, and we included these measures in the conditional conservatism model proposed by Basu (1997) and Ball and Shivakumar (2005, 2006). The samples are firms on the KOSPI and KOSDAQ markets from 2013 to 2022. [Findings]We finds aggressive tax reporting decreased their accounting conservatism in the next year (t＋1) compared to companies that did not report aggressive taxes. These results, in addition to the research showing a negative relationship between existing tax avoidance and conservatism, mean that aggressive tax reporting companies also do not increase accounting conservatism, and these results are more consistent with the KOSPI market than the KOSDAQ market companies. [Implications]Given that relatively little research has been conducted on the relationship between corporate tax strategies and accounting conservatism, this study examines the impact on financial reporting policies among tax avoidance companies, especially those with very high levels of aggressive tax reporting. The research confirms this and provides implications for academia and financial authorities.