생산유발 및 생산성 제고 효과를 통한 항공기 개발 투자의 파급효과 분석

홍창목,이재경,이태희,김도현,Hong, Chang-Mok,Yi, Jae-Kyung,Lee, Tae-Hee,Kim, Do-Hyeon 한국벤처창업학회 2010 벤처창업연구 Vol.5 No.4

The article analyses economic effect of medium size aircraft development project. It is based on the measurement of induced production and increased productivity by the investment on the development project. The analysis shows around 5.2 trillion KRW induced production and 65 billion KRW productivity are expected, if 1.4 trillion KRW is invested as planned. The economic effects with the same size of investment across different manufacturing industries - shipbuilding, auto, general machinery and emiconductor - are also measured for comparison. The result reports ircraft anufacturing is positioned as middle in terms of induced production nd productivity nhancement. he results in this article support the investment, which has economic asibility as well as strategic and military importance as argued.

사베인즈-옥슬리 규정에 따른 내부회계관리제도 구축 사례

홍창목 ( Chang Mok Hong ),이태희 ( Tae Hee Lee ),최황택 ( Hoang Taig Choi ) 한국회계학회 2012 회계저널 Vol.21 No.2

신뢰할 수 있는 재무보고정보를 제공하기 위하여 기업 경영자, 규제기관, 외부감사인 등 많은 당사자들이 노력하고 있지만 그중에서도 재무보고정보를 생산하는 책임을 지닌 경영자가 가장 중요한 위치에 있을 것이다. 엔론, 월드컴 등 대형 회계부정사건들로 인하여 기업들이 어떻게 회계투명성을 손상시켰는지에 대한 이해는 깊어졌으나 이와는 반대로 회계투명성 제고를 위하여 많은 시간과 자원을 투입하며 노력하는 실제 기업의 모습은 지극히 당연한 것으로 여겨져 충분히 드러나지 못하는 듯하다. 본 논문에서는 기업투명성이 기업가치 창출의 근본이라고 굳게 믿는 최고경영진이 이끄는 한국의 대표적 기업이 상당한 시간과 자원을 투입하며 회계투명성 향상을 위하여 어떤 노력을 하였는지에 대한 경험을 사례형식으로 기술하였다. 이 사례는 2004년 7월 한국과 미국에 동시 상장한 엘지디스플레이가 SOX(the Sarbanes-Oxley Act) section 404 규정에 따른 내부회계관리제도를 2004년 8월부터 시작하여 2007년 2월에 성공적으로 구축하기까지의 과정을 담고 있다. 재무보고정보의 신뢰성을 향상시키려는 회계규제에 기업이 실제로 어떻게 대응하고 있는지는 물론, 경영자를 비롯한 조직구성원들, 규제기관, 외부감사인, 감사위원회를 비롯 한 지배구조, 그리고 외부컨설턴트들이 어떻게 상호작용하며 회계투명성을 향상시키고 있는지를 기술하였다. 사례는 엘지디스플레이의 컨트롤러로서 내부회계관리제도 구축과정을 실무적으로 이끈 저자 중의 한명의 실제 경험, 참여했던 외부컨설턴트, 외부감사인과의 인터뷰 및 회사의 내부자료를 이용하여 작성되었다. 사례회사는 내부회계관리제도 구축 기간 중 LCD 산업경기의 불황으로 큰 폭의 이익감소는 물론 2006년에는 막대한 적자를 경험하면서도 "기업가치는 실적과 투명성의 함수"라는 최고경영자의 신념에 따라 상당한 자원을 투입하여 내부회계관리제도를 구축하였다. 또한 사례를 통하여 조직구성원 전원의 참여와 통제의식의 함양이 높은 품질의 내부회계관리제도를 구축하는데 중요하며, 위험기준 감사방법론이 내부회계관리제도의 구축에 실무적으로 사용되고 있음도 관찰할 수 있었다. 본 사례는 재무제표정보 생산에 지대한 영향을 미치는 내부회계관리제도의 구축 과정을 다루고 있어 학생들에게 회계정보의 실제 생산과정에 대한 현장감 있는 교육기회를 제공할 수 있을 것으로 생각된다. 또한 내부회계관리제도를 새로이 구축하거나 강화하고자 하는 실무자들에게도 유용한 시사점을 제공해줄 것이다. SOX section 404는 외감법과는 달리 연결재무제표기준의 내부회계관리제도와 그에 대한 외부감사인의 감사의견을 요구하고 있다. 국제회계기준의 적용으로 연결재무제표를 기준으로 한 내부회계관리제도가 요구되고 있는 상황에서 이미 이를 구축한 사례회사의 경험은 시의적절한 도움을 줄 수 있을 것으로 보인다. Many interested parties, such as corporate managers, regulatory authorities, and independent auditors, have strived toward enhancing financial reporting quality. However, corporate managers take a central place in this endeavor because they are responsible for preparing and presenting financial statement information. We have come to understand how corporations have impaired accounting transparency due to major accounting scandals like Enron and WorldCom. On the other hand, there seem to be little reports describing real-world examples of firms investing considerable time and resources to improve their corporate transparency. In this case study, we report such an example where considerable resources were invested to enhance reliability of financial reporting led by an CEO who believed that firm value is determined by both bottom line and transparency. The case company, LG Display, went public at the same time in the US and Korea. This case contains the entire process from August 2004 to February 2007 during which LG Display went through establishing internal control over financial reporting("ICFR") under section 404 of the Sarbanes-Oxley Act. We described how the case company complied with regulatory requirements, and how entire workforce, CEO, outside consultants, independent auditors, corporate governance structure worked together to implement quality ICFR. The case was constructed based on actual experiences of one of the authors who, as the company`s controller, managed the entire project from the beginning. Also, the company`s internal documents and interviews with consultants and auditors were used for preparing the case. Despite the case company experienced severe decline in operating performance due to the depressed LCD industry, CEO strongly supported the project, saying that firm value depends upon accounting transparency. We have learned through the case that control consciousness embedded in corporate culture and continuing participation of every member of an organization were very critical to successful implementation of ICFR. Also, we had an opportunity to observe practical applications of risk-based audit methodology. Students would get an real-world experience of financial reporting information production process by studying this case. Practitioners, who have to establish a new ICFR or plan to upgrade their existing ICFR, would get valuable insights regarding how to build better quality ICFR. SOX section 404 demands consolidated standard ICFR and independent auditors` audit opinion(not review) on the effectiveness of ICFR. In light of K-IFRS being implemented in Korea, it becomes necessary to reestablish ICFR on the consolidated standard. The case company already experienced of implementing IFCR in compliance of SOX section 404, and therefore this case containing such experiences would be very helpful to many Korean companies.

감사위원회의 특성이 내부회계관리제도 인적자원투자에 미치는 영향

홍창목(Chang Mok Hong),정진향(Jin Hyang Jung) 한국경영학회 2012 經營學硏究 Vol.41 No.5

Large-scale accounting frauds such as Enron and WorldCom revealed several problems in the external auditors`gatekeeper role, thus imposing strong demand that corporations strengthen their internal monitoring mechanisms. In 2002, the Sarbanes-Oxley Act was enacted to reinforce the responsibilities of the manager and external auditor for internal control over financial reporting(hereafter, “ICFR”). In South Korea, several accounting reform efforts introduced a strict regulation for ICFR. This regulation required firms to focus full-blown attention on their ICFR. The quality of financial statements can be guaranteed to some degree through effective external auditing even if firms maintain poor accounting and internal control over financial reporting system. However, the long-run reliability of financial statements can be fundamentally increased by strengthening ICFR. It takes large investments to establish and operate ICFR of high quality. The problem is that there are strong possibilities of not sufficient investments being made because such investments do not generate short-term profits and rent-seeking managers may be hesitant to make investments for increasing accounting transparency. One of the main reasons that ICFR be regulated is to promote investments to maintain its quality above a certain minimum level. Of course, it takes a lot of considerable investments to maintain internal control over financial reporting at a level beyond the minimum required quality. At the core of the regulation of internal control over financial reporting are evaluation of ICFR effectiveness and report its results. Managers are required to establish ICFR system including relevant organization and rules, regularly assess the effectiveness of the system, and report the evaluation results to the audit committee. An external auditor needs to provide her review opinion about whether the managers` evaluation report is appropriate. The audit committee assesses the effectiveness of ICFR from an independent standpoint, reviews the manager`s evaluation procedures and results, and reports to the board of directors. The audit committee also reviews an external auditor`s evaluation plans for ICFR and results, and approves them. Such an evaluation process allows any defects of ICFR to be detected, reported to the board of directors, and revised quickly. Since the evaluation results are also disclosed publicly, managers are strongly motivated to maintain the quality of internal control over financial reporting at a certain minimum level or higher. It is essential that the audit committee and external auditors should make independent and effective assessment of ICFR in order to facilitate sufficient investments to ICFR, which is the essential purpose of its regulation. The audit committee will especially exercise important influences on the manager`s decision about investing resources for ICFR since it supervises the ICFR evaluations performed by the manager and external auditor. In this paper, we examined the relation between audit committee composition characteristics and number of ICFR -related personnel for the KSE-listed companies for the period of 2004 to 2009. Independent variables of the regression model are audit committee accounting expertise, audit committee members` tenure, audit committee members` multiple directorship while controlling audit committee size, audit committee independence and audit committee meeting frequency. Because there are potential endogeneity between the level of ICFR- related personnel and audit committee accounting expertise, we formally deals with this self-selection problemby utilizing Heckman`s method. We found that firmsize, business group(so called chaebol), board independence, operating complexity, and growth potential showed statistically significant positive relation with the dependent variables(the number of ICFR personnel). On the other hand, institutional investors` share-holdings, the largest owner`s share-holdi

내부회계관리제도검토보수의 결정모형

최황택(Hong Taig Choi),이태희(Tae Hee Lee),홍창목(Chang Mok Hong) 한국경영학회 2012 經營學硏究 Vol.41 No.4

The present paper, using the undisclosed internal control over financial reporting(ICFR) review fee data, investigates whether firm characteristic variables exhibit differential explanatory power over audit fees despite their many overlapping features. Given that Korean firms started to adopt actively the ICFR system since 2004, it has reached a critical juncture in its effort to evaluate empirically the effectiveness of the adopted system. Also, unlike the external audit service in which the targeted audit risk should come into play, ICFR review is relatively free from such audit risk in analyzing the relationship between ICFR review fee and its determining firm characteristics. Our study, which examined cross-sectional determinants of ICFR review fee and wether there exists substitutability between ICFR review fee and financial statement audit fee, has never been done before in Korea. The empirical analysis used data from 94 auditee firms during 2007-2009 period. A Big 4 auditor firm in Korea performed external audits and ICFR reviews for all 94 sample firms. After eliminating some yearly data due to data availability, 144 firm-year data were obtained from the sample firms for the analysis. Firm-year observations are almost evenly distributed among 28 industries. Over the sample period, the average ICFR review fee and audit fee is 17 million Won, 138 million Won, respectively. The average ICFR review fee is about 12.3% of the average audit fee. Despite many of the overlapping features between financial statement audit and ICFR review, the two do not exhibit price substitutability. That is, the auditee firms pay statistically significant amount of ICFR review fees over and beyond extant audit fees. In other words, the external audit fees do not decrease despite of firms paying ICFR review fee in addition to external audit fees. This clearly shows auditee firms purchasing different service from the audit firm at least in the early years of adoption. We classified the explanatory variables into auditor litigation risk variables and some governance related variables. The latter is again sub-grouped into BOD (board of directors) composition-related, ownership-related, and audit committee-related variables. Auditor litigation risk is proxied by whether a firm has an officer and director insurance(ODI). BOD independence is measured by the percentage of outside directors. A dummy variable is used to proxy BOD expertise. If there is at least one accounting expert on the board, the dummy variable takes the value of 1, otherwise 0. Potential agency costs faced by an auditee firm is measured by the firm`s ownership structure. Two proxy variables are used: the first one is the shareholding percentage of the largest owner, and the second one is the management shareholdings. The last governance-related variable represent whether the firm has an audit committee. Several control variables are added to the ICFR review fee model. They are firm size, growth rate, and the number of subsidiaries. We expect the following relationship between ICFR review fee and explanatory variables. Positive relations are expected for ODI, BOD independence, BOD expertise, audit committee presence, firm size, growth rate, and the number of subsidiaries. Negative relation is expected for the potential agency cost variables, the largest owner`s shareholdings and managers` shareholdings. Ceteris paribus, firms with higher litigation risks, external director ratios in BOD and lower major shareholder`s ownership ratios and non-owner manager firms exhibited higher payment for the ICFR review service. The presence of an accounting expert in BOD did not have any explanatory power. These results are consistent with the extant agency costs explanation of major shareholder`s monitoring effect and shareholder/ non-owner manager agency costs. Also, the presence of the audit committee did not render additional explanatory power. Regarding firm characteristic variables, the samp

근로소득의 비과세규정 개선에 관한 연구

황규영(Gyu Young Hwang),홍창목(Chang Mok Hong) 한국세법학회 2010 조세법연구 Vol.16 No.2

현행 소득세법상 비과세근로소득에 대한 규정은 소득세법 제12조 제3호에 언급되어 있다. 이러한 비과세근로소득 중 사회보장보험(국민건강보험, 고용보험, 노인장기요양보험)의 사용자 부담금과 각종 연금법상 사용자 부담금은 본질상 근로소득에 해당하기 보다는 법에 따라 사용자가 부담하는 공과금 또는 근로자에 대한 연금급여의 선급에 해당한다. 그러므로 이들 항목은 비과세근로소득이 아니라 근로소득에서 제외하는 항목으로 규정되어야 타당하다. 법인세법과 달리 소득을 개별적으로 구분하고 이에 대하여 별도의 계산구조를 갖추고 있는 소득세법의 논리구조를 고려할 경우, 비과세근로소득에 대한 이러한 불명확한 구분은 세법규정의 논리적인 정합성을 감소시키고 있다. 더욱이 이들 항목과 연계하여 비과세를 판단하는 소득항목인 생산직근로자의 연장근무수당에도 영향을 미쳐서 그 비과세 여부의 판단이 달라지는 문제점을 발생시키고 있다. 이러한 문제점을 해소하기 위해서는 사회보장보험 등의 사용자 부담금을 비과세근로 소득이 아닌 근로소득에서 제외하는 소득으로 재분류할 필요가 있고, 조세법률주의에 입각한 법적 안정성을 고려할 경우 근로소득에서 제외하는 소득에 대한 규정을 현행 소득세법 시행령에서 모법인 소득세법으로 이관할 필요성이 있는 것으로 분석되었다. The existing provision on the tax-free earned income is described at Article 12, Number 3 of Income Tax Law. Among these tax-free earned income, the employer contributions on social security and pension essentially correspond to utility bills or to pension payments-in-advance rather than earned income. Therefore these current prescription about tax-free earned income should be enacted as an exclusion items from earned income. Income Tax Law, which itemizes the income and provides different calculation scheme per each income, has a different logical structure in contrast with Corporate Tax Law. Therefore these unclear income classification decreases the logical matching of Income Tax Law. Futhermore, they cause the confusion in judging whether the manufacturing worker's overtime pay is tax-free or not. In order to solve these shortcoming, it is necessary to reclassify the employer contributions on social security and pension as an exclusion items of earned income. Considering legal stability based on tax legalism, it is necessary to alterate the provision about exclusion items of earned income from Income Tax Enforcement Ordinance to Income Tax Law.

기업경쟁력과 내부통제 시스템

서정우(Chung Woo Suh),홍창목(Chang Mok Hong),김은홍(Eun Hong Kim) 한국경영학회 1996 經營學硏究 Vol.25 No.1

The purpose of the study is to empirically investigate whether there are differences in the internal control systems among Korea, Japan, U. S. A firms. After analyzing the relationships among firms` value activities and internal control systems, we selected several performance measures. On these selected measures, the study examines the type and frequency of goals and feedback information provided to managers. Significantly more Japanese and U. S. A managers than Korean managers recieve goals and feedback information more frequently. While Japanese and U. S. A managers well recieve information both in physical units and in financial terms, Korean managers poorly receive information in financial terms. These findings imply that Korean firms inefficiently operate internal control systems, and may encounter difficulties in establishing competitive advantages.

조세회피가 재무분석가의 허딩에 미치는 영향

이혜미(Lee, Hye-mi),홍창목(Hong, Chang-mok) 한국회계정보학회 2021 회계정보연구 Vol.39 No.2

[연구목적] 본 논문의 목적은 한국채택국제회계기준이 의무도입된 2011년 이후의 자료를 이용하여 기업조세회피 수준이 개별 재무분석가들의 이익예측치 허딩(herding) 성향에 영향을 미치는지를 실증분석하는 데 있다. 볼드예측치에는 예측합의치에 담긴 정보는 물론 재무분석가 본인만의 사적정보까지 반영되어 시장에 전달된다. 반면 허딩예측치에는 재무분석가의 추가적인 사적정보가 반영될 가능성이 작기 때문에 이익예측치가 시장으로 전달하는 정보수준이 상대적으로 낮을 것이다. 허딩으로 인하여 재무분석가의 이익예측치가 시장에 새로운 정보를 제공하지 못한다면 시장의 정보효율성은 저하될 것이다. 선행연구들은 조세회피의 증가로 기업의 정보환경이 더욱 불투명해진다는 증거들을 보고하고 있다. 조세회피수준의 증가에 따라 기업의 공적정보의 수준이 낮아지더라도 공적정보의 대체재로 알려진 재무분석가의 이익예측치를 통한 사적정보생산이 증가한다면 조세회피에 따른 부정적 효과가 완화될 수 있을 것이다. 그러나 조세회피수준의 증가에 따라 재무분석가의 이익예측치 허딩 성향이 늘어난다면 이익예측치에 사적정보가 반영되지 않으므로 기업정보환경의 불투명성이 완화될 가능성은 작아질 것이다. [연구방법]조세회피로 인하여 영업활동의 복잡성이 증대하고, 기업정보환경이 더욱 불투명해진 환경에서 재무분석가들이 허딩 예측치를 발표할 가능성이 높은지 아니면 볼드예측치를 발표할 가능성이 높은지를 2013년부터 2019년까지의 기간 동안 한국유가증권시장의 12월 결산 비금융업 상장기업들을 대상으로 실증적으로 검증하였다. 장기(3년)현금유효세율로 조세회피수준을 측정하고, Clement and Tse(2005)의 방법에 따라 볼드예측치를 측정하여 분석을 실시하였다. [연구결과]검증한 결과, 표본기간 동안 조세회피수준이 증가함에 따라 재무분석가들은 볼드예측치를 발표할 가능성이 더 높은 것으로 나타났다. 이는 재무분석가의 사적정보가 이익예측치에 반영되어 시장에 증분적인 정보내용을 전달하고 있음을 시사한다. 개별 재무분석가들은 이익예측치를 발표하는 시점(forecast timing)이 모두 다르므로 이들의 예측정확성을 올바르게 평가하기 위하여는 재무분석가 이익예측치의 상대적 정확성을 측정할 필요가 있다. 재무분석가 이익예측치의 상대적 정확성을 측정한 결과, 볼드예측치가 허딩 예측치보다 증분적인 정보를 시장에 전달하는 것은 물론이고, 조세회피수준의 증가에 따라 기업정보환경이 약화될수록 이러한 증분정보전달 기능이 강화됨도 발견하였다. [연구의 시사점] 본 논문은 개별 재무분석가 수준에서 조세회피가 재무분석가들의 허딩을 포함한 이익예측 행위 및 이익예측 정확성에 미치는 영향을 분석하였고, 지금까지 대부분의 재무분석가 허딩 연구는 2011년 이전 기간에 국한되었으나 한국채택 국제회계기준(K-IFRS)이 적용되는 2011년 이후 기간을 대상으로 기간을 확장하여 분석하였다. [Purpose]The purpose of this paper is to empirically analyze whether the level of corporate tax avoidance affects financial analysts propensity to issue herding forecasts. In the case of bold forecasts, the information contained in the consensus forecasts as well as the financial analysts’ own private information will be reflected and communicated to the market. Negative effects of tax avoidance on corporate information environment may be alleviated if the production of private information through bold earnings forecasts by financial analysts increases. However, if the tendency of financial analysts to herd their earnings forecasts increases as the level of tax avoidance increases, reducing the opacity of the corporate information environment may be hard to be realized. [Methodology] The sample period covers years from 2013 to 2019. Using a long-term (3 years) effective cash tax rate as the measure of the level of tax avoidance using and bold forecasts measured according to the method of Clement and Tse (2005), this paper empirically examines whether financial analysts are more likely to issue bold forecats as tax avoidance level increases in the Korean securities market. [Findings]Financial analysts issued more bold forcasts as the level of tax avoidance increased during the sample period. This implies that incremental information is delivered to the market through financial analysts’ earnings forecasts. Since individual financial analysts have different forecast timings, it is necessary to measure the relative accuracy of their forecasts in order to correctly assess their forecasting accuracy. In terms of the relative accuracy of financial analysts earnings forecasts, the bold forecasts not only deliver incremental information to the market compared to the herding forecasts, but as the corporate information environment weakens as the level of tax avoidance increases, the level of incremental information communicated further increases. [Implications]This paper is the first in Korea to analyze the impact of tax avoidance on the analysts’herding behavior at the level of individual financial analysts . It also has been expanded to cover the period after 2011 when K-IFRS is applied.

조세회피와 현금보유액 시장가치의 비선형적 관계

이혜미(Lee, Hye-mi),홍창목(Hong, Chang-mok) 한국회계정보학회 2021 회계정보연구 Vol.39 No.4

[연구목적] 본 논문의 목적은 1999년부터 2017년에 걸쳐 한국유가증권시장 상장기업들의 현금보유액에 대한 투자자들의 가치평가가 얼마나 조세회피가 공격적인가에 따라 어떻게 달라지는를 실증적으로 조사하는 것이다. [연구방법] 기업의 현금보유액에 대한 투자자들의 가치평가는 투자자들이 인식하는 조세회피의 적정 수준과 기업이 실제로 수행한 조세회피 수준에 따라 달라진다고 예측한다. 조세회피가 적정수준으로부터 멀어질수록 기업의 현금보유액에 대한 투자자들의 가치평가는 낮아진다고 예상한다. 따라서 조세회피가 덜 공격적인 구간에서는 조세회피 수준의 증가에 따라(적정수준으로 가까워질수록) 현금보유액에 대한 투자자들의 가치평가는 증가하고, 조세회피가 보다 공격적인 구간에서는 조세회피 수준의 증가에 따라(적정 수준으로부터 멀어질수록) 현금보유액에 대한 투자자들의 가치평가는 감소할 것이라는 가설을 검증한다. 조세회피의 공격적 수준을 반영하기 위하여 개별 기업의 현금유효세율을 연도별-산업별-규모별 현금유효세율의 평균으로부터 차감하는 방식으로 조세회피 변수를 산정하고 실증분석을 수행하였다. [연구결과] 기업의 현금보유액에 대한 투자자들의 평가는 일정한 수준까지 조세회피가 증가함에 따라 증가하다가 변곡점 이후부터는 감소하는 오목함수의 모습을 보이는 것을 발견하였다. 즉, 변곡점을 투자자들이 인식하는 적정 조세회피수준으로 볼 때 이로부터 멀어질수록 기업의 현금보유액에 대한 투자자들의 가치평가는 낮아짐을 발견한 것이다. 또한, 발생액품질로 회계투명성을 측정하고 조세회피변수와의 관계를 살펴 본 분석에서도 회계투명성이 조세회피변수에 따라 증가하다가 감소하는 오목함수 형태의 비선형관계를 보이는 것으로 나타났다. [연구의 시사점] 본 논문은 조세회피가 반드시 대리인 문제를 초래하는 것은 아니라는 Armstrong et al(2015)의 주장을 지지하는 추가 증거를 제시함으로써 조세회피의 경제적 영향에 대한 이해 증진에 기여하고, 조세회피의 공격적 수준과 투자자들의 적정조세회피 수준에 대한 인식을 고려하는 것이 중요함을 강조한다. 또한, 조세회피가 현금보유액에 대한 투자자들의 가치평가에 대한 분석을 한국유가증권시장의 상장기업을 대상으로 실시함으로써 코스닥시장에 국한된 기존 연구를 보완하고 있다. [Purpose] The purpose of this paper is to empirically investigate how investors valuation of cash holdings of listed companies on the Korea Stock Exchange from 1999 to 2017 is affected by how aggressive tax avoidance is. [Methodology] We predict that investors valuation of a company s cash holdings will depend on the aggressiveness of tax avoidance. In the less aggressive range of tax avoidance, investors valuation of cash holdings increases as the level of tax avoidance increases, but in the more aggressive range, investors valuation of cash holdings decreases as the level of tax avoidance increases. [Findings] Results of empirical analysis using tax avoidance variables calculated by subtracting the effective cash tax rate of individual companies from the average of the effective cash tax rates by year-industry-size show investors valuation of a company s cash holdings is a concave function that increases with tax avoidanec below the inflection point, and decreases above the inflection point. In addition, in the analysis of accounting transparency measured by accrual quality and examining the relationship with tax avoidance, it was found that accounting transparency showed a non-linear relationship in the form of a concave function that ,as tax avoidance increases, increased below the inflection point and then decreased above the inflection point. [Implications] This paper contributes to a better understanding of the economic impact of tax avoidance by presenting additional evidence supporting Armstrong et al (2015) s assertion that tax avoidance does not necessarily lead to agency problems. It was suggested that it is important to consider the investor’s perception of the level of appropriate tax avoidance and aggressiveness of tax avoidance. In addition, this paper extends prior research limited to the KOSDAQ market by conducting an analysis of investors valuation of cash holdings on listed companies in the Korea Stock Exchange.