A Research On The Internal Effect Of The Equity Incentives And Corporate Tax Avoidance

With the emphasis on the issue of the reform of the equity incentive policy for our nation's listed companies in Opinions of the CPC Central Committee and the State Council on the Deepening the Reform of the State-owned Enterprises which was promulgated in our nation in recent years,the issue regarding the equity incentives for the managers of the listed companies has again become the focus of concerns by our nation's industrial sector and the research circle.In addition,the problem of corporate tax avoidance has been an issue of focus of concern in our nation,and many domestic scholars,based on the brand new research approach featuring the application of the proxy theory in the research of corporate tax avoidance,regard the correlation between our nation's corporate tax avoidance and the equity incentives of the corporate managers as the main research subjects.However,the development of our nation's corporate equity incentive system is relatively backward.Therefore,under such a background,the research on whether the changes in the equity incentive system of corporate managers will result in the changes in the corporate tax avoidance system has become a research topic with practical significance.Aiming at the implementation of equity incentive plan,the issue of the research is introduced by observing how equity incentive in TCL corporation affects managers' attitude of avoiding taxes.This form of research makes the research issue more prominent and provides the basis for proposing research hypotheses in this paper at the same time.This Paper centers on such a theme,and,on the basis of the predecessors' research and based on the financial panel data of our nation's listed companies in the recent three years from 2012 to 2014,it establishes a regression analysis model so as to conduct regression analysis on the corporate tax avoidance and equity incentive degrees and the corporate managers on the overall samples.It finally reaches a conclusion that the corporate tax avoidance and equity incentive degrees of the corporate managers feature an insignificant positive correlation.Through the analysis of this result,we did not halt our research here;instead,we segmented the equity incentive degrees of the managerial levels of our nation's listed companies,and respectively conducted the regression analyses on the tax avoidance degrees and the equity incentive degrees of the senior managers of our nation's listed companies,and therefore deduce the conclusion that there exists an interval effect between the degrees of corporate tax avoidance and the equity incentive degree of the corporate managers.Through the analysis,we found that the degrees of corporate tax avoidance and the equity incentive degree of the corporate managers had a positive correlations only in the interval of [4%,7%] of equity incentives,thus proving the hypothesis that under the different degrees of equity incentives the corporate managers will resort to different attitudes of tax avoidance.