The Empirical Study On The Effects Of Tax Avoidance With The Intevention Of Corporate Governance

The study on tax avoidance has a short history and still be a controversy.The traditional opinion holds that tax avoidance can bring tax benefits to the firm,which can help enhance firm value.However,some researchers find that the seperation of the rights of ownership and management in modern corporates makes it possible for the managers’ opportunistic behaviours with the cover of complex methods originally designed for tax avoidance,which may have negative effects on firm value.They also find that well-governed condition of the firm can moderate the negative relationship.Until now,there have no any scholar shed light on the effect of tax avoidance and explore the factors that affect the relationship between tax avoidance and firm value.The paper takes on a study on the relationship among tax avoidance、 coeporate governance and firm value with the use of theoritical and empirical meghods.On the basis of reviewing related literatures,the paper goes deep to study the mechanism of tax avoidance and corporate governanance on firm value and puts forward two hypotheses.In order to test the hypotheses,352companies listed in Shanghai during2010to2012are chosen as samples to conduct the multiple linear regrssion.The results indicate that there exists obvious negative correlation between tax avoidance and firm value and corporate governance can moderate the relationship positively and effectively.Another index which can explain the degree of tax avoidance is adopted to test the robustness of the results.In the end,it gives a summary of the paper and puts forward some suggestions for firms accordingly:The plan of tax avoidance should be made reasonably and the condition of corporate governance should be enhanced to ensure the effects of tax avoidance.