Title: The impact of investment in internal control personnel on tax saving activities: evidence from Korea

Authors: Inkyung Yoon; Sunae Cho; Hansol Lee; Dongjoon Choi

Addresses: College of Business, Gachon University, 1342, Seongnam-daero, Sujeong-gu, Seongnam-si, Gyeonggi-do, Republic of Korea ' College of Business and Economics, Dankook University, 152, Jukjeon-ro, Suji-gu, Yongin-si, Gyeonggi-do, Republic of Korea ' Department of Business Administration, Kangwon National University, 1, Kangwondaehak-gil, Chuncheon-si, Gangwon-do, Republic of Korea ' School of Business, Chungnam National University, 99, Daehak-ro, Yuseong-gu, Daejeon, Republic of Korea

Abstract: This study investigates the impact of investing in internal control personnel on a firm's tax-saving activities. Considering that, investments in internal control personnel contribute to creating an efficient information environment, a higher level of investment in internal control system personnel enables a firm to conduct tax-saving activities more effectively. The results of the analysis, using data from Korean listed firms, reveal a significant positive relationship between the level of investment in internal control personnel and tax-saving activities. Furthermore, the path analysis results indicate that the increased tax savings resulting from investments in internal control personnel enhance the level of corporate investment. This study confirms the impact of investing in the human resources of internal control systems on corporate tax-saving activities and verifies that firms are utilising the resources saved through tax-saving activities for further investment. This provides important implications for both corporations and regulatory agencies.

Keywords: tax saving activities; corporate investment level; internal control systems; investment in internal control personnel.

DOI: 10.1504/GBER.2026.154022

Global Business and Economics Review, 2026 Vol.34 No.4, pp.440 - 460

Received: 11 Jul 2024
Accepted: 31 Dec 2024
Published online: 10 Jun 2026 *

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