A Study On The Impact Of Corporate Tax Avoidance On Investment Efficiency

For companies that pursue economic interests,it is a common practice to take legal means to avoid taxation.Tax avoidance often runs through the whole process of corporate financial management,which is extremely important to the company,and tax avoidance related research has gradually attracted the attention of scholars.The traditional view that tax avoidance will help reduce the company tax burden,enhance the value of the company,but the study about the tax avoidance under the principal-agent theory hold the view that in the modern companies,tax avoidance has a significant impact on the internal and external information asymmetry,and may aggravate the agency problem,However,information asymmetry and agency problem are important reasons for the decline in the efficiency of the company's investment,so the company in the implementation of tax avoidance,will have a negative impact on investment efficiency.The good governance of the company,through the effective operation of various governance mechanisms,can weaken the impact of information asymmetry and agency problems in tax avoidance,which can play a certain role in the impact of tax avoidance on investment efficiency.Therefore,based on the corporate governance perspective,this paper studies the impact of corporate tax avoidance on investment efficiency.Firstly,a literature review is presented from three parts,which are the influence factors of investment efficiency,the impact of tax avoidance on investment efficiency,and the influence of corporate governance on the relationship between tax avoidance and investment efficiency.Secondly,through theoretical analysis,this paper elaborates the impact of tax avoidance on investment efficiency and the role of corporate governance in the impact of tax avoidance on investment efficiency,and then put forward the hypothesis.Finally,the empirical research is carried out.Based on the data from 2010 to 2015 of Shanghai and Shenzhen A-share listed companies,the multiple linear regression model is used to test the hypothesis by SPSS22.0 statistical software.According to the theoretical analysis and empirical results,the conclusion was put forward,and the research limitations and future prospects of this paper were given.The results show that:(1)The company's tax avoidance will have a negative impact on investment efficiency.The company's implementation of tax avoidance will reduce the transparency of the company's information and increase the degree of internal and external information asymmetry,while reducing the manager's salary performance sensitivity,increased shareholder and manager of the agency conflict,resulting in the company's investment efficiency decline.(2)Raising the level of corporate governance can weaken the impact of tax avoidance on investment efficiency.This is because the high level of corporate governance through the supervision mechanism and the incentive mechanism of good operation,can improve the manager's opportunistic cost,increase its share of the value of the company to enhance the degree of management and shareholders to enhance the consistency of the target,so as to alleviate the degree of asymmetry of information and the degree of agency problem,and to weaken the negative impact of tax avoidance on investment efficiency.