Financial Analyst Following,Reputation And Tax Avoidance

This paper studies the impact of financial analysts following to tax avoidance using the sample of A shares listed in Shanghai and Shenzhen stock exchange market from 2007 to 2016.This study finds that the dummy of financial analyst following and the number of analysts following is significantly positively correlated with the degree of tax avoidance,star analysts following makes the extent of the tax avoidance severely.The extent of tax avoidance is significantly reduced as the financial analysts are no longer following.This research results show that the analyst following are press the companies' managers to induces the listed company to take the tax avoidance activity in order to achieve the earnings target.The results reveal the adverse consequences of the financial analyst following,which is beneficial to the literature of the financial analyst following.In this paper,the research method of combination of normative research method and empirical research method is used,Under the premise of combing existing literature,research hypotheses are put forward.Firstly,the relationship between the analysts' follow-up and the tax avoidance behaviors of listed companies was studied,Then,the degree of influence of star analysts with high reputation on the tax avoidance behavior of listed companies was studied,Finally came to the conclusion that analysts and followers will exacerbate the tax avoidance behavior of listed companies,and star analysts will make tax avoidance more significant.The research in this paper reveals the role of analysts in the follow-up to the economic behavior of listed companies.This article studies the relationship between analyst follow-up and corporate tax avoidance and is divided into seven sections:The first part is the introduction,which expounds the background and significance of the topic,summarizes the research ideas and methods of the article,and summarizes the main contents and framework of the article.The second part is the literature review.First,the article reviews and analyzes the relevant literature about the follow-up of analysts and the tax avoidance behavior of the company respectively.Secondly,it summarizes the literature about the relationship between the follow-up of analysts and the tax-avoidance behavior of the company.On this basis,it makes a comprehensive analysis and leads the research of this article based on the evaluation of these documents.The third part is a theoretical overview of the follow-up and tax avoidance behavior of listed companies by analysts.It defines the concepts of analyst follow-up,analyst reputation and corporate tax avoidance behavior,and explains the relevant theoretical basis.The fourth part is the theoretical analysis and research hypothesis,from analysts released earnings forecast report and star analyst release earnings forecast report as the starting point for theoretical analysis,on the basis of which to establish research hypotheses,based on the previous scholars to learn from the design of this article Research model.The fifth part is empirical test.This part analyzes the influence of analyst follow-up on the tax avoidance behavior of listed companies and further studies the further influence of analyst reputation on the tax avoidance behavior of listed companies.Taking into account the endogenous impact,select the tool variables,and conducted a robust test.The last part is the conclusion,policy suggestion,deficiencies and prospects of this paper.The main contribution of this paper is based on the degree of tax avoidance perspective study found that analysts follow-up will exert pressure on the performance of listed companies management,research conclusions help to improve the analyst's role in the capital market.On the other hand,the follow-up of analysts can lead to the increase of tax avoidance of listed companies.The conclusion of this study provides tax regulatory authorities with a view to tax collection and management,helps tax departments to effectively handle the tax avoidance problems of listed companies,and improves the tax collection and administration system.