Corporate Governance, Tax Burden And Corporate Employment

As an important financial policy, tax-reduction has always been important for thegovernment to stimulate the economy. It is also an important tool to improve employment.The new enterprise income tax law came into effect in2008, since then, the rates,referential policy have been unified, the focus of the preferential tax policy has shifted fromthe district to the industry. To some extent, it made our planning of enterprise tax’s regionalenvironment changed. In addition, our country is in economic transition stage, the specialsystem background makes occupies a large proportion of the state-owned enterprises in ourcountry, in order to achieve the social goal, the government will utilize certain socialresponsibility, such as absorbing employment, etc. at the same time, the government willgive the enterprise a certain tax privilege. Based on the2008tax reform as an opportunityto explore company property nature, the difference of regional environment influence onexcess employment-tax elasticity, so as to obtain the internal mechanism and deep reasons.This article select companies during2006-2011as research samples to exploredifferences in tax reform, property rights and regional environmental effects on excessemployment-tax elasticity. First of all, this paper verifies the negative correlation betweenthe excess employment and actual tax burden; secondly, based on the system background ofthe tax reform, the article explore tax reform has influence on excess employment-taxelasticity; Moreover, according to the actual control of listed company’s economic status,the sample is divided into state-owned enterprises and private enterprises, and comparetheir elasticity of excess employment-tax burden; Finally, this article regard marketizationindex as the index of regional environmental differences, through the empirical test toverify regional differences will affect the company excess employment-tax elasticity;Further, according to the actual control of state-owned enterprises are the centralgovernment or local government, further divided into state-owned enterprises and localstate-owned enterprises, and compare the elasticity of excess employment-tax burden. Trough the research and analysis of this paper, we can mainly draw the followingconclusions: firstly, the company’s actual tax has negative relationship correlated withexcess employment. Secondly, after income tax system reform, the enterprise excessemployment-tax elasticity decrease; Moreover, compared to private enterprises,state-owned enterprises’ excess employment-tax elasticity is higher; Finally, the higher thedegree of marketization of the region, the smaller the difference of the enterprises’ excessemployment-tax elasticity; Further, compared with the state-owned enterprises, localstate-owned enterprises’excess-employment-tax elasticity is higher.