고성과자와 저성과자의 이직의도: 전반적 조직공정성 지각의 역할

권기욱 한국기업경영학회 2015 기업경영연구 Vol.22 No.2

In a knowledge driven economy, organizations have recognized human resources as a source of sustained competitive advantage. In particular, retaining employees significantly influences organizations’ growth and profitability. Research in human resource management and organizational behavior have paid much attention to explaining employees’ retention and turnover processes. However, there are several limitations in this stream of research. First, although employee turnover could negatively influence firm performance, studies suggest that high performers’ turnover relative to low performers’ has differing impacts on firm performance. In addition, a recent study shows that although high performers’ turnover is negatively related to firm performance, low performers’ turnover are not significantly associated with firm performance. Nevertheless, most studies on employee’s turnover have not explicitly explored if high performers are more likely to leave their firm than low performers. Second, there are, in fact, a few theoretical and empirical studies on the relationship between employee performance and turnover intention or actual turnover. However, empirical results of this relationship are not unequivocal. For example, while studies indicates the negative relationship between employee performance and turnover, other studies show no relationship or positive relationship between employee performance and turnover. Third, as studies argue, there could be a direct relationship, either positive or negative, between employee performance and turnover behavior. However, scholars also suggest that this relationship may depend on the degree to which organizations recognize and reward employee performance using human resource practices such as performance-based compensation and promotion. Empirical studies support the moderating roles of such financial incentives on the relationship between employee performance and turnover. Although these studies help understand the employee performance-turnover relationship, there is lack of studies that investigate the moderating effects of other diverse factors besides financial incentives such as salary growth or promotion on the relationship between employee performance and turnover. Thus, this study explores these limitations and questions remained unanswered on the relationship between employee performance and turnover. First, this study examines the difference of turnover intention, which is a strong predictor of employee’s turnover behavior, between high performers and low performers. This study reviews diverse theoretical aspects of employee turnover including a March and Simon(1958)’s turnover model, which is foundation of understanding why and what factors could influence employees’ turnover intention and turnover behavior. Building upon three competing theoretical perspectives, this study develops three competing hypotheses related to turnover intention between high performers and low performers. Second, this study investigates the impacts of overall organizational justice perception on turnover intention of high performers and low performers. This study applies organizational justice theory and social exchange theory to develop hypotheses that turnover intention of high performers and low performers will be negatively influenced by overall organizational justice perception. Third, considering the conditional aspect of social exchange theory, this study predicts that the impacts of overall organizational justice perception on turnover intention will be stronger for high performers than low performer. The results of this study show that high performers’ turnover intention is lower than low performers’. In addition, the results indicate that while overall organizational justice perception negatively influences the turnover intention of both high performers and low performers, the effect of overall justice perception on turnover intention is stronger for high perform... 급변하는 경영환경 속에서 기업성과에 영향을 미치는 요인으로 인적자원관리의 중요성이 부각되고 있으며, 특히 고성과자의 확보, 유지 및 이직은 기업의 성과에 중요한 영향을 미칠 수 있는 것으로 나타나고 있다. 하지만, 기존의 개인의 성과와 이직 및 이직의도와의 관계를 살펴본 몇몇 논문들은 성과와 이직의 관계가 긍정적이라고 주장하는 한편, 몇몇 연구들은 이 관계가 부정적 또는 비선형적인 관계를 가진다고 주장한다. 이러한 개인의 성과와 이직의도 간의 관계의 복잡성과 불명확한 결과는 고성과자와 저성과자의 관리에 대한 기업들의 전략적인 대응을 어렵게 하고 있을 뿐만 아니라 성과와 이직에 관한 연구들을 이해하는데 어려움을 주고 있다. 이러한 상황에서 본 연구는 직원의 성과와 이직의 관계를 살펴보고 연구결과를 바탕으로 이론적이고 실무적 시사점을 제공하고자 한다. 이를 위하여, 본 연구는, 첫째, 고성과자와 저성과의 이직에 영향을 미치는 중요한 예측변수인 이직의도의 차이에 관하여 기존의 이직의도와 이직에 관련된 연구모델들을 바탕으로 살펴본다. 둘째, 고성과자와 저성과자의 이직의도가 전반적 조직공정성 지각에 의하여 영향을 받을 것이라는 것을 사회교환이론을 이용하여 설명하고, 셋째, 고성과자와 저성과자의 이직의도가 전반적 조직공정성에 의하여 영향을 받지만 그 영향의 정도는 고성과자에게 더 강하게 나타날 것이라는 가설을 도출한다. 가설검정은 6개 기업의 202명의 종업원들로부터 수집된 자료를 바탕으로 실증 분석을 실시하였다. 본 연구의 결과는 고성과자의 이직의도는 저성과자의 이직의도와 비교하여 낮게 나타났으며, 이들의 이직의도는 전반적 조직공정성 지각에 의하여 영향을 받는다는 것을 보여주었다. 또한, 고성과자의 경우 전반적 조직공정성이 이직의도에 미치는 영향이 저성과자와 비교하여 더 강하게 나타났다. 본 연구의 결과는 격화되는 시장경쟁에서 기업성과 향상을 위한 고성과자들의 유지관리에 관한 실무적인 시사점을 제공한다.

외국항공사 지상직 종사원의 이직결정요인과 이직행동의 관계 연구

노미현 관광경영학회 2017 관광경영연구 Vol.78 No.-

It's expected to increase foreign airlines flying to Korea. Most of foreign airlines are interested in HR management. A study was focused on ground staffs having actual turnover experiences. The moderating effects of an employee's significance on the determinants of turnover were analyzed. For relationship between turnover determinants(Push) and turnover, job dissatisfaction for job, compensation, training ,human relationship and autonomy were revealed to have meaningful and positive effect on actual turnovers. For relationship between turnover determinants(Pull) and turnovers, compensation satisfaction, job alternative, empowerment were revealed to have meaningful and positive effect on actual turnovers. And moderating effects of an employees' significance didn't seem to affect employee's turnovers. It's suggested that the HR management focus on compensation, training, autonomy, empowerment because these are turnover determinants controlled by company. To decrease turnover, company provides regular training course, empowerment to employees. This research has understood turnover determinants of foreign airlines employees and also analyzed how the turnover determinants could affect to turnover behavior. Finally, it suggested the implication for the efficient managing skill for the HR and for the airlines business result.

정보통신 업종 대졸 초기 경력자의 이직의도와 이직행동 결정요인 분석

이영민,연경진 한국기업교육학회 2009 기업교육과인재연구 Vol.11 No.1

The purpose of the study was to examine the influential factors affecting the college graduating newcomers's turnover intention and behavior in information and technology industries. We adopted a panel survey data and analyzed the variables in terms of turnover. As the result of the study, we found that job satisfaction, job and skills match, wage and etc impacted on their turnover intention. In addition, educational level, job and skills match, work environment, corporate welfare level, turnover intention affected their turnover behavior in IT industries. However, their turnover behaviors varied by a series of influential factors, not just turnover intention variable. If the newcomers have the turnover intention, their intention behavior has been affected by organizational satisfaction, wage satisfaction, and welfare systems. Otherwise, their turnover behavior has been affected by the educational level, wage satisfaction, welfare system, union participation, and employment types. We suggest the need for stable policies that prevent newcomers from doing turnover in their industries. 본 연구의 목적은 IT업종에 진입한 3년 미만의 대졸 초기 경력자들을 대상으로 이들의 이직의도와 이직행동에 영향을 미치는 결정요인들을 파악하여 분석하는 것이다. 한국고용정보원의 대졸자 직업이동 경로조사 자료를 바탕으로 연구 대상자를 선별적으로 추출하고 변인들을 설정하였다. 연구결과, 이들이 이직을 하려고하는 태도나 성향에 영향을 미치는 요인들은 직무만족도, 업무와 기술 수준의 일치도, 임금만족도, 승진만족도, 노동조합 가입여부 요인 등이었다. 또한 실제 이직을 실행하도록 영향을 미치는 요인들은 교육수준, 업무와 기술수준 일치도, 복리후생, 근무환경, 이직의도 등이었다. 그러나 이러한 이직행동에 영향을 미치는 요인들은 이직 시, 대상자의 자발적인 이직의도가 있었는지 여부에 따라 다소 상이하였다. 이를 통해 IT업종의 대졸 초기 경력자들의 조기이직을 통제할 수 있는 방안들을 마련해야 한다는 점을 제언하였다.

피부관리실에 근무하는 피부미용사의 이직의도와 그 영향요인에 관한 연구

김현정 ( Hyun Jung Kim ),박우영 ( Woo Young Park ),이영숙 ( Young Sook Lee ) 한국미용학회 2009 한국미용학회지 Vol.15 No.3

As a study on turnover intention in estheticians, its aim is to arrange a frame in establishing a research tool on estheticians` turnover intention and also to suggest direction in a management strategy for human resource management by presenting an alternative plan for high turnover rate in estheticians. As this is a research of empirical survey through questionnaire, the questionnaire was carried out targeting 220 estheticians, who are working now at skin care shops, centering on Seoul and Gyeonggi area. The data analysis in the collected questionnaire was utilized a program of SPSS 12.0 for Window. In the results of this study, the working environment and stress among job-characteristic factors ever showed a considerably low rank. When trying to consider the result that all these factors have significant influence upon turnover intention, the necessity for improvement in working environment and for reduction in stress factor can be said to be very significant result to a manager. Among organizational-characteristic factors, just the educational training was indicated to have significant effect on turnover intention. Thus, there seems to be necessity for offering an opportunity of education centering on those, who have career with high turnover frequency, and for continuous stimulus aiming at internal & external growth in employees. The ease for turnover, which is external-environment factor, is showing significant correlation with turnover intention. The ease for turnover can be known to be increasing turnover intention through high vacant rate or scout suggestion in other skin care shops. This is thought to be likely to be a good alternative for human resource management in necessity for considering on introduction of pay according to ability other than the fixed monthly-pay system and even in arranging the compensation system available for acquiring according to the longer seniority than the compensation that an employee comes to obtain through turnover. A research on turnover intention in employees for aesthetic is unreasonably lacking in its number. This can be said to be a significant research in a part that tries to seek for an alternative plan for human resource management aiming at reducing high turnover rate, which resulted in chronic problem in esthetic industry.

최고경영자 교체 빈도와 이익의 질

전성빈,박상수,이아영 韓國公認會計士會 2007 회계·세무와 감사 연구 Vol.45 No.-

최고경영자 교체는 기업의 영업활동, 투자활동, 재무활동 등 경영활동뿐만 아니라 회계 정책, 회계 추정 등 기업 내 회계시스템 전반에 변화를 초래할 수 있는 중요한 사건이라 할 수 있다. 선행연구에 의하면 최고경영자 교체 전후에 자산 상각이 많이 발생하고 있으며, 또한 새로운 최고경영자의 부임 시점에 이익조정이 많이 이루어지는 것이 보고되었다. 최고경영자의 잦은 교체로 자산 상각과 이익조정이 자주 일어나면 발생액과 이익은 큰 폭의 변동을 나타내고, 따라서 최고경영자 교체가 빈번한 기업은 그렇지 않은 기업에 비해 이익의 질이 떨어질 것이다. Dechow & Dichev(2002)가 개발한 이익의 질 측정치 및 Jones 모형으로부터 도출한 재량적 발생액의 표준편차를 이익의 질 대용치로 이용하여 분석한 결과, 최고경영자 교체율이 높은 회사가 이익의 질이 현저히 낮았다. 다중회귀분석 결과, 최고경영자의 교체율이 높아질수록 이익의 질은 떨어졌고 이는 통계적으로 유의하였다. 최고경영자 교체율이 외생변수가 아니라 경영성과, 이익이 질 등에 영향을 받는 내생변수일 수 있다. 최고경영자 교체율의 내생성 문제를 완화하기 위해 2단계 최소자승법(2SLS) 분석을 실시하였다. 추가 분석에서도 최고경영자 교체율이 높아질수록 이익의 질은 낮아진다는 일관된 결론을 얻었다. 본 연구는 시계열 자료를 이용하여 산출한 최고경영자 교체율을 이용하여 최고경영자의 빈번한 교체가 이익의 질에 부정적 영향을 미친다는 것을 보임으로써 최고경영자 교체에 관한 연구 범위를 확대하였고, 이익의 질에 영향을 주는 요인에 최고경영자 교체율을 추가함으로써 이익의 질에 관한 연구에 시사점을 제공한다. CEO turnover is a critical event that could cause the changes in a firm's operating, investing and financing activities as well as in the accounting system of the firm. Existing studies have documented that earnings management and discretionary write-offs are associated with CEO turnover. Using a sample of non-financial firms listed on the Korea Stock Exchange over the 1994~2004 period, we investigate the relation between quality of earnings and CEO turnover ratios. The test results can be summarized as follows. First, we ran multiple regressions to analyze the relation between the quality of earnings and CEO turnover controlling for the frequency of negative earnings, magnitude of sales volatility, operating cycle, firm size, etc. The result shows that CEO turnover ratio has a significantly negative relation with the quality of earnings. With a restricted sample which includes only firms with at least one CEO change during 1994~2004 period, the negative relation between CEO turnover ratio and the quality of earnings turns out to be more pronounced. Second, we used 2SLS (two-stage least squares) to consider the simultaneous association between the quality of earnings and CEO turnover ratio. While the CEO turnover ratio affects the quality of earnings, CEO turnover ratio might be affected by the quality of earnings. The result of 2SLS shows that there exists an interaction between the quality of earnings and CEO turnover ratio. This provides the evidence that high CEO turnover ratio results in low quality of earning and high quality of earning results in low CEO turnover ratio. This study contributes to the research area related to CEO turnover by showing the negative relationship between CEO turnover ratio and the quality of earnings. It also contributes to the research area in earnings quality by adding CEO turnover ratio variable to the factors influencing earnings quality.

Nutrient Turnover by Fine Roots in Temperate Hardwood and Softwood Forest Ecosystems Varying in Calcium Availability

Park, Byung Bae Korean Society of Forest Science 2007 한국산림과학회지 Vol.96 No.2

The effect of nutrient availability and forest type on the nutrient turnover of fine roots is important in terrestrial nutrient cycling, but it is poorly understood. I measured nutrient turnover of hardwoods and softwoods at three well studied sites in the northeastern US: Sleepers River, VT; Hubbard Brook, NH; Cone Pond, NH. Significant differences in nutrient turnover by fine roots were observed among sites, but not between forest types. The magnitude of differences for each element ranged from 3 times for P and N to 8 times for Ca and Mg between sites. Smaller differences of 0.2 to 0.8 times were observed between forest types. In hardwoods, the Sleepers River 'new' site had $23kg\;ha^{-1}\;yr^{-1}$ Ca, $7kg\;ha^{-1}\;yr^{-1}$ Mg, and $16kg\;ha^{-1}\;yr^{-1}$ K turnover, owing to high root nutrient contents and turnover. Cone Pond had the highest turnover for Mn ($0.8kg\;ha^{-1}\;yr^{-1}$) and Al ($16kg\;ha^{-1}\;yr^{-1}$), owing to high nutrient contents. The Hubbard Brook hardwood site exhibited the lowest turnover of these elements. In softwoods, the variation in turnover of Ca, Mg, and K was lower than in hardwoods. The Hubbard Brook had the highest turnover for P ($1.6kg\;ha^{-1}\;yr^{-1}$), N ($31kg\;ha^{-1}\;yr^{-1}$), Mn ($0.4kg\;ha^{-1}\;yr^{-1}$), Al ($10kg\;ha^{-1}\;yr^{-1}$), Fe ($6.4kg\;ha^{-1}\;yr^{-1}$), Zn ($0.3kg\;ha^{-1}\;yr^{-1}$), Cu ($34g\;ha^{-1}\;yr^{-1}$), and C ($1.1Mg\;ha^{-1}\;yr^{-1}$). Root Ca turnover exponentially increased as soil percentage Ca saturation increased because of greater root nutrient contents and more rapid turnover at the higher Ca sites. These results imply that nutrient inputs by root turnover significantly increase as soil Ca availability improves in temperate forest ecosystems.

최고경영자 교체가 경영성과에 미치는 영향

이해영,신지숙 한국기업경영학회 2013 기업경영연구 Vol.20 No.3

There have been many studies under the subjects of the poor corporate performance as a major factor of CEO turnover, the earning management at the time of CEO turnover, and the stock market reaction to the announcement of CEO turnover. However, few researches seem to be found on the effect of CEO turnover on corporate performance in Korea. The purpose of this study is to analyse the effect of CEO turnover on the corporate performance in Korea. In other words, it is to analyse if CEO turnover leads to improving corporate performance in terms of an increase in corporate value and in accounting profit. The corporate performance in the stock market was measured by a total market value (CPV). The accounting performance was measured by the ratio of an operating income to total assets (ROA) and the ratio of a net income to total assets (ROE). Specially, unlike previous studies done by others, this study used the panel data analysis method to resolve the heterogeneity and the multi-collinearity problems. And 2 Stage Probit-MLE model was applied to control the endogeneity problem. This study is conducted using 401 samples of listed companies in the Korea Stock Exchange for the period of 10 years from 2001 to 2010. In this study, the independent variable is a dummy variable where it takes the value of 1 if there is CEO turnover and 0 if otherwise. The control variables are divided between the variables related with the ownership structure (the equity ratios of the largest shareholder, institutional investors and foreign investors) and the variables related with the corporate performances (the debt ratio, the ratio of sales growth, and the age of the corporation). And the empirical analysis is applied to the fixed effect model of a panel data analysis by testing of Hausman. The CEO turnover was analysed to be affected by the existence of endogeneity on the three factors of corporate performance variables (CPV, ROA, ROE). It suggested that if the three factors are not considering the endogeneity problem in analysing, it can draw a biased conclusion. The results of this study are as follows. First, the CEO turnover has a significantly positive relation to the total market value. It means that the CEO turnover leads to the increase in the value of stocks. Second, the CEO turnover has a negative effect on the accounting profits, which include the ratio of the operating income to total assets and the ration of the net income to total assets. Third, in the control variables related with ownership structure, the equity ratio of the largest shareholder has a significantly negative effect on the total market value. But the equity ratios of institutional investors and foreign investors are positively related with it. On the other hand, the accounting performance has a significantly positive coefficient with the ratios of institutional investors and foreign investors. But the equity ratio of the largest shareholder does not a significantly affect on the accounting performance. Fourth, the debt ratio is statistically less significant with coefficients for the total market value and the ratio of accounting profit. But the ratio of sales growth has a significantly positive effect on all the corporate performances. The age of the corporation seems to have a significantly positive effect on the total market value, but it has a negative effect on the accounting performance. Fifth, this study separately analysed the effect of CEO turnover on corporate performance with samples classified according to the size of the firm (small, middle, and large companies). As a results, the CEO turnover has a significantly positive effect on the market value and a negative effect on the accounting profit ratios in all types of companies. These results suggest that CEO turnover occurs in the year of a poor corporate performance and doesn't lead to improving an accounting performance at in the pertinent year. But it leads to the increase in the total market va... 본 연구에서는 2001년부터 2010년까지 한국거래소에 상장된 401개 표본기업을 대상으로 최고 경영자의 교체가 경영성과에 미치는 영향을 분석하였다. 즉 최고경영자의 교체가 기업가치 상승이라는 시장에서 형성된 경영성과의 향상, 회계적 이익 상승이라는 경영성과의 향상으로 이어지는지를 실증분석하였다. 시장 에서의 경영성과는 시가총액으로, 회계적 성과는 총자산영업이익률과 총자산순이익률로 측정하였다. 또한 본 연구에서는 이전의 연구와는 차별적으로 패널자료를 이용한 패널자료분석법과 내생성 문제를 완화한 2단계 프로빗-MLE 모형을 연구 방법으로 사용하였다. 실증적 분석 결과, 최고경영자 교체는 시가총액에 양(+)의 영향을, 회계적 성과인 총자산영업이익률과 총자산순이익률에 대해서는 음(-)의 영향을 미치는 것으로 확인되었다. 이는 최고경영자 교체가 일반적으로 경영성과가 저조한 경우에 이루어진 경우가 많으며, 최고경영자 교체 당해 연도에는 회계적 이익 향상으로 직접 이어지지 못하나 그 이후 연도부터는 이익이 개선될 것이라는 기대가 시장에 영향을 미쳐 교체 연도의 주가상승으로 이어진 것으로 보인다. 시가총액에 대해 소유구조 관련 통제변수 중 최대주주지분율은 음(-)의 영향을, 기관투자자지분율과 외국인투자자지분율은 양(+)의 영향을 미치는 것으로 나타났다. 회계적 이익률에 대해서는 기관투자자지분율과 외국인투자지분율만이 양(+)의 영향을 미치는 것으로 분석되었다. 한편 부채비율은 시가총액과 회계적 이익률 모두 음(-)의 영향을, 매출액성장률은 양(+)의 영향을 미치는 것으로 나타났다. 기업연령은 시가총액에 대해서는 양(+)의 영향을, 회계적 이익률에 대해서는 음(-)의 영향을 미치는 것으로 분석되었다. 또한 표본기업을 중소기업, 중견기업, 그리고 대기업으로 분류하여 분석한 결과, 모두 동일하게 시가총액에는 유의적인 양(+)의 영향을, 회계적 성과에는 음(-)의 영향을 미치는 것으로 분석 되었다.

Health problems, turnover intention, and actual turnover of shift work nurses: A prospective longitudinal study

Jison Ki,Smi Choi-Kwon 한국간호과학회 2021 한국간호과학회 학술대회 Vol.2021 No.10

Aims: Turnover intention has been used as a proxy variable for turnover. However, the relationship between turnover intention and turnover was inconsistent. Hence, this study aimed to examine the association between turnover intention and actual turnover by using prospective longitudinal data with a time lag of 12 months. We also explored the association between health problems (sleep disturbance, fatigue, and depression) and turnover intention and turnover, and the mediating role of turnover intention. Methods: This study was a secondary data analysis study using Shift Work Nurses" Health and Turnover (SWNHT) project data, a prospective longitudinal cohort study targeting shift work nurses. We analyzed health problems, turnover intentions, and actual turnover within 12 months. Descriptive statistics, Pearson"s chi-squared test, independent t-test, univariable logistic regression, multiple logistic regression, and causal mediation analysis were performed. Results: The participants were 491 female nurses working shifts. One hundred twelve (22.8%) nurses had a turnover intention, and thirty-eight (7.7%) nurses actually left their job within 12 months. Among the 112 nurses who had the turnover intention, 22 nurses left their job (OR 5.54. 95% CI 2.79-10.99). In logistic regression analysis, sleep disturbance and fatigue were associated with both turnover intention and actual turnover, but depression was only associated with turnover intention. In causal mediation analysis, turnover intention mediated sleep disturbance, fatigue, and depression (sleep disturbance OR 1.31, 95%CI=1.02-1.60; fatigue OR 2.11, 95%CI=1.50-2.68; depression OR 1.34, 95%CI=1.02-1.72), and natural direct effect of sleep disturbance was also significant (OR 2.66, 95%CI=2.07-3.21). Conclusion: We found that turnover intention was a strong predictor of actual turnover. Sleep disturbance, however, might cause turnover even if the nurse had no turnover intention. Therefore, early interventions for preventing and alleviating sleep disturbance of shift work nurses are urgently needed.

기업수준 직원이직률의 사회적 역동성 : 과거 이직률, 조직몰입 및 기업성과의 관계

권기욱 ( Kiwook Kwon ),옥지호 ( Chiho Ok ) 한국생산성학회 2021 生産性論集 Vol.35 No.1

This study investigates the process of relationship among past employee voluntary turnover rates, future employee voluntary turnover rates, and firm performance. In addition, we considered the remaining employees' organizational commitment as contextual factors (boundary condition) between past (t-1) and present (t) employee voluntary turnover rates. Although the roles and relationships of diverse factors regarding employee turnover at organizational level have been identified in the literature, few attempts have been made to address the relationship of turnover at two different points (e.g. past and present) in time. By noting on the social dynamics and turnover contagion model, we attempted to fill the research gap and shed light on the understanding of the socially dynamic nature of employee turnover. For empirical analysis, we utilized the Human Capital Enterprise Panel Survey and chose 1,239 observations and 469 companies from 2007 to 2017. By doing so, we conducted panel analysis using random-effects modeling based on year-lagged design. The results show that, first, there is a positive causal relationship between past turnover rate (t-1) and present turnover rate (t), supporting the contagion effect. Second, the present turnover rate (t) mediates the relationship between past turnover rate (t-1) and future firm performance (t+1). Third, organization-level organizational commitment, derived by summing up responses from multiple employees, moderates the relationship between past turnover rate (t-1) and present turnover rate (t) such that the positive relationship (contagion effect) is stronger when organizational commitment is low rather than high. Based on the results, we provided theoretical and practical implications which could help organizations enhance their productivity and effectiveness.

최고경영자 교체와 조세회피

고윤성(Yun Sung Koh),기은선(Eun Sun Ki) 한국경영학회 2014 經營學硏究 Vol.43 No.4

In this paper we examine the association between CEO turnover and tax avoidance. Further, we also examine whether the effects of CEO turnover on tax avoidance vary with the types of turnover (voluntary/forced turnover). On the on hand, given the top statutory tax rate of 22%, minimizing corporate taxes can greatly enhance after-tax cash flows and firm value. Also it increases after-tax earnings, consequently improving the chances to meet earnings targets. Therefore, CEOs have the incentive to inflate after-tax earnings by minimizing corporate taxes in order to obtain higher bonus or to extend their tenure. On the other hand, tax avoidance canbe costly for CEO because he/she may face potential reputational damage or accusation forillegal tax evasion in the event a strategy is overturned. The benefits from tax avoidance are immediate. However, the costs are often determined by a tax authority’s investigation after afew years. Indeed, there is often a lag period between benefiting from tax avoidance and bearing costs. A conflict of interest might arise when the CEO who benefits from tax avoidance is different from the CEO who takes risk. For example, departing CEO in his/her last year can shift therisk of aggressive tax avoidance onto incoming CEO, while he/she still enjoys the benefits of tax avoidance such as compensation increase. In this case, departing CEO is likely to be more aggressive to implement a tax avoidance strategy because expected costs of tax avoidance reduce. Meanwhile, incoming CEO tries to remove accumulated tax risk due to a former CEO’s aggressivetax avoidance in his/her first year rather than implement new tax avoidance strategies. Therefore, we expect departing CEO is more aggressive for tax avoidance than incoming CEO. However, the effects of CEO turnover on tax avoidance may differ for voluntary turnover and forced turnover. CEO turnover can be classified as voluntary or forced. Voluntary turnover is the case where departing CEO leaves the company voluntarily, while forced turnover is the case where CEO departure is forced. In case of voluntary turnover, a departing CEO typically remainsa member of the board of directors. Since a departing CEO is still an insider after retirement, he/she might take the responsibility for previous tax avoidance if the strategy is overturned. Therefore, we expect departing CEO of voluntary turnover is less aggressive for tax avoidancethan departing CEO of forced turnover prior to the CEO change year. We analyze 851 CEO turnovers from 2001 to 2011 for firms listed on Korea Stock Exchange and KOSDAQ. We measure corporate tax avoidance using the book-tax differences not attributable to discretionary accruals (Desai and Dharmapala 2006). The empirical results are as follows. First, we find CEO turnover firms shows significant decrease in tax avoidance following turnover. Second, CEO turnover firms have lower levels of tax avoidance after turnover, compared tonon-CEO turnover firms with similar size in the same industry. Third, such results are observedonly when CEO is forced to leave. We do not find significant relation between CEO turnover and tax avoidance in case of voluntary departure. These results indicate that CEOs have differential incentives for tax avoidance around their turnovers depending on the types of turnover. This paper has several contributions to the literature. First, to our knowledge, ours is the first study to find the effects of CEO turnover on tax avoidance. Second, this study shows that CEO turnover causes temporal variation in levels of a single firm’s tax avoidance, while priorstudies focus on the cross-sectional determinants of tax avoidance. Third, the evidence of thisstudy suggests the need for more rigid monitoring for tax avoidance around CEO turnover.