Research On The Impact Of CFO Ownership On Corporate Tax Avoidance

Tax revenue is the most important source of income for a country.It relies on its power to impose taxes on enterprises and individuals in the society.In addition to giving full play to the functions of state revenue,tax revenue also plays an important role in regulating the allocation of resources and normal operation of economic society.The loss of tax revenue has led to a large reduction in state revenue,which has a negative impact on the welfare policy of the state,making the country unable to perform the functions of social public services well.This will also disrupt the normal social and economic order,undermining the efficiency of market allocation of resources and not conducive to shaping a fair Market economy environment.With the development of the economy,all countries continue to improve the tax supervision system,but the problem of tax evasion is still common.Taxpayers use the loopholes in the tax legal system to evade taxes through more concealed and formally more lawful and compliant means.Tax avoidance has always been a hot issue for scholars to study.The existing literature mainly discusses the influence of corporate governance,corporate financial characteristics and ownership structure on tax avoidance.Some scholars have studied from the perspective of executive equity incentive.When business management holds a company's share,its own interests will drive managers to make tax avoidance decisions for improving company profits.As the top financial officer of the enterprise,CFO has the professional financial and tax knowledge,which has the most direct impact on the enterprise tax decision.However,few literatures have discussed the impact of CFO Shareholding on corporate tax avoidance behavior.Therefore,this paper decided to study this problem,and further considered the moderating role of external legal environment and trust environment.This paper can enrich the research literature on the influence factors of tax avoidance,and provide some policy suggestions for tax regulation,in order to reduce the loss of state tax.This paper is divided into five parts.The first part is the introduction,including the research background,purpose and significance of CFO Shareholding on corporate tax avoidance,and literature review on corporate tax avoidance and CFO shareholding.In addition,in this part,the research ideas and innovation points and characteristics of the paper are also expounded.The second part is conceptual definition and theoretical basis.First,we define the concept of the related variables in the text,and then give a detailed description of the theoretical basis of empirical research in this paper.The third part is the institutional analysis,theoretical analysis and research hypotheses.This part first introduces the current situation the CFO of our country and its shareholding system and CFO ownership,and then analyzes the impact mechanism of CFO ownership on corporate tax avoidance and the external legal environment and the trust environment,and finally put forward the hypothesis of the relationship between CFO ownership and the degree of avoidance.The fourth part conducts empirical tests on the hypotheses proposed.This paper selects the listed companies in Shanghai and Shenzhen stock markets in China from 2011 to 2016 as the research samples,and conducts empirical tests by using the multiple regression method.In addition,the robustness test is also carried out in this paper,where the method of lagging one and replacement variables is selected.The fifth part is the conclusion and policy recommendations.The results show that:(1)CFO ownership has a positive impact on the degree of corporate avoidance.That is,the higher the proportion of CFOs holding shares,the higher the degree of corporate avoidance.However,there are obvious differences in this kind of influence between enterprises of different property rights.In the state-owned enterprises,CFO ownership does not have a significant impact on the degree of corporate avoidance.(2)The legal environment and trust environment have a certain regulatory effect on the shareholding of CFOs and the degree of corporate avoidance.A better legal environment and trust environment will inhibit the positive influence of CFO ownership on the degree of corporate avoidance.The research of this paper enriches the relevant research content of CFO,at the same time it enriches the research content of the influencing factors of tax avoidance behavior and helps to raise the level of tax supervision.