Most banks are subject to corporate income taxes while special purpose vehicles that hold securitized loans are corporate tax-exempt. We present a model that shows how this tax asymmetry creates an incentive for banks to sell loans. However, because moral hazard costs arise when banks...

We examine the effects of taxes on Corporate Social Responsibility (CSR). Employing a tax reform in Korea that imposed a new tax on cash retention, we find that treated firms improve CSR performance after the tax reform was enacted. This result is driven by improvement in environmental and...

In this paper, we test the old view and the new view of dividend taxation using a new set of evidence from a unique event. Using a multiple regression discontinuity (MRD) setting from the 2015 tax reform in South Korea, we find that investors react positively to the news of an anticipated...

Even if the corporate tax effects the cost of debt financing, firms' responses to tax changes may differ conditional on country-specific corporate structure. For instance, South Korea is a newly developed country and has distinctive, family-controlled conglomerate structures. This paper explores...

Korea has one of the lowest tax burdens in the OECD area, reflecting its small public sector. However, rapid population ageing will put upward pressure on government spending. The challenge is to meet the long-run need for greater expenditures and tax revenue while sustaining strong economic...