Namryoung Lee

Country: Korea, Republic of
Affiliation: Associate Professor of Accounting, School of Business, Korea Aerospace University
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  • Empirical evidence on the impact of recent Korean tax reforms

    Namryoung Lee , Charles Swenson doi: http://dx.doi.org/10.21511/imfi.15(4).2018.03
    Investment Management and Financial Innovations Volume 15, 2018         Issue #4         pp. 35-47
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    In 2011, Korea required all firms to report all value added tax (VAT) invoices electronically to tax authorities. This unique law provided a natural experiment to examine the effects of this disclosure on income taxes and firms’ related responses. The authors find that this additional required disclosure caused firms to become less aggressive on their income taxes, and that they were unable to pass increased tax burdens forward to consumers or backward to suppliers and labor. To maintain, profitability firms cut research and development (R&D) costs, and this cost cutting was larger for tax aggressive firms. Policy implications of this unintended result are discussed.

Investment Management and Financial Innovations
Business, Management and Accounting Decision Sciences Economics, Econometrics and Finance

Investment Management and Financial Innovations

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Charles Swenson
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