Nature Of Property Rights, Tax Avoidance And Cash Holding Research

Since taxation,tax avoidance has always been the hot spot of the academic research,literature is also very much about tax avoidance,existing research that tax avoidance of enterprises mainly has two effects: on the one hand,helps to reduce corporate tax expenditures,increase shareholder wealth;On the other hand,tax avoidance increase enterprise information opacity which increases the opportunism behavior management.Cash is the enterprise most liquid assets,the most easily manipulated and transfered by management,according to agency theory and asymmetric information theory,the cash is most likely to be the instrument of self-interest behavior management.In this paper,by studying the tax avoidance influence on corporate cash holdings level and value,will help to reveal the mechanism of the tax avoidance affect corporate cash holdings,and helps people find tax avoidance affect enterprise value through what path.In addition,considering the state-owned and non-state-owned enterprises existing natural differences in corporate governance,according to the nature of property rights the whole sample will be further divided into state-owned and non-state-owned two parts respectively,found in non-state enterprises improve the governance mechanism can keep the management of tax avoidance rent-seeking behavior,inhibition of tax evading the negative influence to the corporate cash holdings.This article will be in Shanghai and shenzhen a-share listed companies from 2011 to 2015 as sample,first of all research tax avoidance of enterprises cash levels and the influence of the cash value.Second,and then in the state-owned and non-state-owned enterprises,respectively,the results showed negative correlation between tax avoidance and cash holdings,and this negative correlation relationship is stronger in the state-owned enterprises,suggests that more perfect corporate governance mechanism in non-state enterprises help limit management's opportunistic behavior,inhibition of tax evading the negative influence to the corporate cash holdings.