Audit Quality、External Compensation Dispersion And Tax Avoidance

Since Berle and Means put forward the separation of ownership and management rights in 1932,the pay of managers has increasingly become the focus of attention from all walks of life.The company’s executives as a business operator play a vital role in the development of the entire company.Because of the separation of the modern enterprise owner and the operator,the objective function of the owner and the operator is inconsistent,which make the owner need to design a reasonable salary contract.While motivating managers,managers want their own interests to the maximum.We can get that whether the salary contract design is reasonable is particularly important.And as an important part of the salary design,whether salary gap plays a certain incentive effect also directly shows whether the development of corporate compensation contracts are reasonable.Most of the research on executive pay gap is to explore its relationship with firm performance,and the study of pay gap is also focused on the internal salary gap of executives,that is,between senior executives and executives,and has informed a more mature theory.As for the external pay gap,that is,the company executive compensation and the average salary of the industry executives pay gap,is rarely concerned about.Recently,someone study the relationship between the internal team salary gap and corporate tax avoidance,then does the external salary gap have any effect on tax evasion ? This is the first question to be studied in this article.As one of the important means of external supervision,CPA auditing plays an indispensable role in corporate governance.It not only reduces the agency cost between managers and shareholders,but also inhibits the conflicts of interest between them.CPA auditing not only improves the quality of accounting information,but also inhibits executive opportunism.It played an important role in external supervision,so there is the second idea of this article,whether the improvement of audit quality will affect the external pay gap and tax evasion Relationship,which is the second question explored in this paper.This paper first summarizes the domestic and foreign audit quality,external pay gap and tax evasion related literature,and combines the principal-agent theory,information asymmetry theory,corporate tax evasion theory and fair theory to deduce the hypothesis of this paper.Secondly,the variable design is carried out on the basis of the related literature and the empirical model of this paper is constructed.Finally,after the data screening,we select the2009-2015 A-share and A-share A-share excluding the financial and insurance industry,7911non-state-owned listed companies as a research sample.Empirical analysis includes descriptive statistics of samples,correlation coefficient regression,multiple regression analysis and robustness testingThe results show that:(1)the external pay gap has an impact on tax evasion,that is,the external pay gap is positively related to the tax evasion,that is,the greater the external salary gap,the more serious the tax evasion.(2)audit quality can inhibit the external pay gap and tax evasion’s positive correlation.Therefore,This article presents relevant policy recommendations :(1)we should take into account the relevant national conditions in the design of the pay contract,Our country has always focus on fairness and collectivism and now also vigorously promote a harmonious society,which the most important is the People’s harmonious.Harmonious labor relations is also an inevitable requirement for enterprises to establish a harmonious society.Therefore,in the design of the pay contract,enterprise should know the executive pay level of the industry,It also should ensure fair in considering the benefits,making the external pay gap within a reasonable range of control.(2)from the company’s external governance point of view,the company’s external audit quality must be more stricter,thus can able to avoid tax evasion of enterprises,putting an end to a certain business risk,improve the company’s operating efficiency(3)In terms of the government,they should establish and improve the tax law supervision system,develop a clear tax policy and grasp the focus of tax audit to strengthen the supervision and inspection of taxation departments in the implementation process.