Corruption,Tax Avoidance And Corporate Investment Efficiency

China's economy has been growing rapidly in the past few decades,and companies are prospering.However,after 2010,China's economic growth rate has been declining year by year.The growth rate in 2016 was 6.7 percent,the slowest rate of growth since 1990.And this is the first successive seven years of economic growth decline since the reform and opening up.The economy is facing tremendous downward pressure,so let us turn our perspective to the improvement of economic efficiency.As a means of economic growth,investment efficiency should be the focus of our attention.As the main body of investment,it is very important to invest effectively.For enterprises,the tax expenditure is an important part of enterprise cost which is one of the important factors affecting the enterprise net profit and cash flow and also the important factors that affect corporate investment efficiency,thus the relationship between the two has been the focus of the industry and the theoretical circle.For the country,tax revenue has become an important source of financial policy for the government.It is estimated that the annual tax loss in China is about 400 billion yuan,and the scale of China's tax loss is increasing year by year as the economy develops.The state administration of taxation,according to data released in 2014,our country against tax avoidance and tax check income reached 52.3 billion yuan and 172.2 billion yuan,increased by 12%and 40%respectively than the same period last year,just ten years,is improved 114 times and 5 times respectively.At the same time,in the eighteenth national congress of the communist party of China,the central government more big crackdown on corruption,the central government has reorganized the central inspection teams,positive for government departments and state-owned enterprises officials corruption investigation.As the investigation deepened,the collapse of senior government officials was even more jaw-dropping.Based on domestic and foreign literatures,this paper probes into the relationship between corruption,corporate tax avoidance and corporate investment efficiency based on the entrusted agent.Firstly,corporate tax avoidance is used as the dependent variable,and corruption is used as the independent variable to control other variables,and a panel fixed effect model is established to investigate the relationship between corruption and corporate tax avoidance.And then to corporate investment efficiency as dependent variable,corruption and corporate tax level as independent variable,the other control variables,establish panel fixed effect model to investigate the corruption,the relationship between business tax and enterprise investment efficiency,at the end of the paper introduce the corruption and corporate tax avoidance cross terms regression model.The results show that(1)corrUption can promote the aggressive degree of corporate tax avoidance;(2)corporate tax avoidance activities will aggravate the agency conflict and information asymmetry of enterprises,and reduce the investment efficiency of enterprises;(3)the level of regional corrUption will also lead to agency conflicts and information asymmetry,and reduce the investment efficiency of enterprises;(4)because of agency problem and asymmetric information is the key to enterprises tax avoidance activities affect the efficiency of investment,so the corrUption level as the external environment contributed to the negative relationship between corporate tax and investment efficiency.Finally,the robustness of regression results is tested.