A Review of Empirical Tax Research in Korea

초록

This study reviews empirical tax research in Korea over the past two decades in the following five areas: (1) the informational role of income tax expenses; (2) taxes and asset pricing; (3) tax avoidance; (4) taxes and financing decisions; and (5) income shifting. The first section discusses book-tax differences and their implications for earnings and market responses. Also included are the valuation of deferred tax assets, earnings management with income tax expenses, and book-tax conformity. In the second section, we examine works on the capitalization of dividend and capital gains taxes, together with those on implicit taxes. The third section reviews studies on the concept, theoretical background, and measures of tax avoidance. Also discussed are papers on the impact of tax avoidance on business choices. In the fourth section, we examine works on the role of taxes in financing choices. The last section is devoted to the literature on income shifting between related parties.

키워드