Research On Corporate Goverance Effect And The Mechanism Of The Tax Aadministration

Corporate governance is a hot issue in the field of theory and practice, especially in the economic transition period. Good corporate governance is not only to enhance the competitiveness of enterprises, improve the necessary conditions of the business performance,but also the cornerstone to ensure that the capital market and the macro economic can healthy development. However,in the economic transition period, the lack of a satisfactory system environment, such as the low efficiency or failure of the legal and regulatory system,lead to the general failure of corporate governance structure, the governance role of the informal mechanism can be demonstrated,specifically related to a series of themes. In recent years,the tax system as an important legal system,the positive effect of improving corporate governance is increasingly concerned by domestic and foreign scholars.The tax system includes two dimensions:the design of the system,the adjustment of the tax system, the adjustment of the tax rate, and the tax administration. These two dimensions have a profound impact on the capital structure and the behavior of the parties. In view of the relative stability of the tax and the tax rate, it is difficult to obtain large sample data, and the tax administration has a significant difference in the time and the region. Therefore, the research on corporate effect of tax system, tax administration is an explanatory variable.Based on this background, this paper takes China’s transitional economy as an example, the paper systematically studies the corporate governance role of tax administration,tries to find the empirical evidence of the positive governance effect of tax administration and provides clues and basis for optimizing corporate governance mechanism design and improving corporate governance quality. In the study, the main use of statistical analysis method,the 2012- 2008 years,China’s stock market in Shanghai and Shenzhen Stock Exchange listing Corporation(not including small plates and the GEM companies) as the research sample, using stata12.0 panel data analysis, focusing on the relationship between tax administration and free cash flow and information disclosure. The results show that the improvement of tax administration can significantly reduce the agency costs of free cash flow, and improve the company’s information transparency, the quality of information disclosure is higher, which confirms the research hypothesis.The research on the corporate governance effect of tax system is mainly to solve two problems. One is whether the positive corporate governance effect of tax system is indeed there;the two is the transmission mechanism of the tax system to influence corporate governance. The innovation of this paper is focused on these two aspects: first, this paper focuses on the impact of tax collection on the free cash flow agency costs,and the existing research focus on the management fees and related transactions, which enrich the research. Second, the paper introduces the quality of information disclosure as a key variable, and puts forward that tax tax administration can play an important role in improving corporate governance.Although the research on the corporate governance effect of the tax system(especially the tax administration),the corporate governance is a complex system engineering, and it is difficult to be accomplished overnight, it needs the self perfection of formal mechanism and informal mechanism, more need to complement and promote.