Corporate Tax Avoidance,Supervising Board Governance And Firm Value

As an important subject of corporate tax research.,the relationship between corporate tax avoidance and firm value is deeply concerned by enterprises,On the one hand,the corporate tax activities can save expenditures for the enterprise,on the other hand,it increases the agency cost of the enterprise,therefore,the relationship between corporate tax avoidance and firm value is worth studying.At the same time,the link between corporate tax avoidance and firm value is closely related to corporate governance,because that corporate governance affects the agency cost of the enterprise and their relationship is further affected.The supervising board governance is an important part of corporate governance,it can alleviate the agency problem,reduce the agent cost of tax avoidance,and have the effect of regulating the relationship between corporate tax avoidance and firm value.Based on this,this paper introduces the principal-agent theory and supervising board governance theory,define the concept of corporate tax avoidance and firm value,then investigate the relationship between corporate tax avoidance and firm value in China.and the regulation effect of the supervising board governance.To check what happens in China,we conduct a fixed effect model regression analysis of panel data consisting of 2363 public firms in years 2011 to 2015,summing up 9552 firm-year observations.,Our results show that corporate tax avoidance has hurt the firm value,the group study shows that in the environment with strong tax collection and management,corporate tax avoidance has no significant impact on firm value,on the contrary,in the weak environment of tax collection and management,corporate tax avoidance is negatively correlated with firm value,the group study based on the nature of the enterprise shows that the tax avoidance activities of state-owned enterprises reduce their firm value,but there is no significant relationship between tax avoidance and firm value in non-state-owned enterprises.This paper further studies the regulating effect of the supervising board governance,the results show that the supervising board governance can alleviate the negative relationship between tax avoidance and firm value,in the study of the group,the supervising board governance can improve their negative relationship too in the weak tax collection and management environment,at the same time,supervising board governance in state-owned enterprise can improve the negative relationship between the tax avoidance and firm value.This paper concludes that in the current Chinese listed companies,corporate tax avoidance has a negative impact on firm value,and the supervising board governance plays an important role in mitigating value destruction,and the shareholding ratio of the supervisory board is an effective indicator of supervising board governance.The research innovation of this paper includes research perspective innovation and research content development,this paper study the link between corporate tax avoidance and firm value from the perspective of supervising board governance,and further expand the research content,studying the heterogeneity of different tax collection and management intensity and the different nature of enterprises.This paper has deepened the research about corporate tax avoidance and firm value,innovated the regulation effect research of supervising board governance,and enriched the literature research in the related fields.Based on the research,it is suggested that the enterprise should cultivate good tax compliance awareness,optimize the supervising board governance,rationally select the development area with strong tax collection and management,and suggest that the tax department should strengthen the tax collection and management.