Research On The Impact Of Corporate Tax Avoidance Activities On Non-efficiency Investment

With the reform of Chinese taxation system,corporate tax avoidance activities have become widespread in China's listed companies.The traditional theory of tax avoidance believes that corporate tax avoidance activities reduce corporate tax costs and ease corporate inefficiencies.However,with the gradual separation of corporate ownership and management rights,due to the complexity and opaqueness of corporate tax avoidance activities,it will aggravate corporate agency issuesand have a more serious impact on internal and external information asymmetry.Information asymmetry and the problem of entrusted agency is the two influencing factors of non-efficiency investment.Based on this,this article will study the influencing factors of corporate tax avoidance activities on non-efficiency investment.Since the avoidance of corporate income tax is more common,this paper takes the avoidance of corporate income tax as the cut-in point to study the influence factors of corporate tax avoidance activities on non-efficiency investment.Firstly,clear the research background of this article,and then reviews the domestic and foreign related research.Based on the theoretical analysis,three hypotheses of the paper were proposed.Based on Richardson's model,a model of Investment forecast was constructed.The residual value of the model and the absolute value of the residual were used as dependent variables.The measurement indicators accounting-tax difference BTD and adjusted accounting-tax difference DDBTD as independent variables,and adding control variables to build three models of the impact of tax avoidance on non-efficient investment.This article selects the listed company of all A shares of Shanghai and Shenzhen stocks as the research object from 2014 to 2016.Through SPSS 17.0,the empirical study of the research object of this paper finds the following conclusions:(1)China's listed companies generally have non-efficiency investmentconditions,and find that the situation of under-investment is relatively more serious,which is directly related to the overall environment of Chinese overall economy.(2)According to the results of regression analysis on the impact of corporate tax avoidance on non-efficiency investment,corporate tax avoidance activities will increase the problem of non-efficiency investment.(3)Regression analysis on the impact of corporate tax avoidance onover-investment and under-investment level.Through regression analysis,it is found that corporate tax avoidance activities mainly aggravate the over-investment problem of enterprises,and there is no significant relationship with investment insufficiency.Based on the conclusions drawn from this article,this article believes that listed companies should increase their awareness of paying taxes,strengthen the internal supervision of enterprises and the management of their own cash flow,improve the incentive mechanism of management,and improve the company's non-efficiency investment issues.