Background Characteristics Of Managers And Tax Avoidance:Basis On The Reform Of Enterprise Income Tax

Tax avoidance has been the focus of academic research for a long time. The principal-agent setting with the development of modern system provides a new perspective for the study of tax avoidance problem. With the continuous development of China’s market economy, tax avoidance is becoming increasingly commonplace. In this background, what role are the top managers playing in the tax avoidance?According to the data of top managers turnover, this article studies the relationship between the fixed effects of manager and tax avoidance. We further study the impact of manager background characteristics on corporate tax avoidance. On this basis, we also take the tax reform of 2008 into consideration and analyze the difference of the impact of manager background characteristics on corporate tax avoidance before and after the tax reform.The empirical results show that the manager fixed effect significantly effects the corporate tax avoidance. And the background characteristics of CFO have no significant impacts on tax avoidance. The age of the CEO has a negative effect on tax avoidance, after the tax reform, this effect is not significant. The degree of the CEO has a positive effect on tax avoidance, after the tax reform, this effect is becoming more significant. This study helps to understand the influencing factors of tax avoidance and evaluate the consequence of tax reform.