Accounting Information Quality,Tax Avoidance And Financial Constraints

In the course of the development of a company,financial constraints may become an important factor affecting its business activities.The causes of asymmetric information include moral hazard and adverse selection,and information asymmetry may lead to credit rationing and other problems.Credit rationing will make the cost of financial outside the company significantly higher than the cost of using internal funds.Cash holdings of the company are of great significance.In the face of financial constraints,as much as possible to reduce the company's cash outflow is also a way to increase the company's internal cash flow.Tax expenditure for companies,if the company can reduce a part of the company's cash expenditure through reasonable tax evasion,such as tax planning,in other words,a reasonable way of tax evasion can help to increase the amount of cash holdings for the company.At present,the tax collection and management system in our country is not sound,and there are some differences between the accounting standards and the tax law.These objective factors make the company more likely to choose the way of tax avoidance,and these factors also improve the possibility of the success of tax avoidance.In fact,no matter what kind of tax avoidance will have a certain risk,this risk may be the performance of accounting standards or accounting system related to the improvement,also may show that the tax supervision system is gradually improving,tax authorities on the company's tax audit efforts are increasing.On the other hand,when the company's internal capital can not meet the normal investment needs of the company,it needs to consider financial from outside.Accounting information has the function of pricing and governance.Through these two functions,it can effectively reduce the information asymmetry between the company and the external investors,and reduce the amount of the amount of risk compensation required by the external investors.In addition,the governance function of accounting information can help to reduce the agency conflict and reduce the agency cost,thus reducing the cost of external financial and alleviating the financial constraints of the company.From the above analysis,we can see that the company's tax avoidance behavior and the improvement of the quality of accounting information can achieve the purpose of alleviating the financial constraints of the company.The two parties have different mechanisms and different modes of action to alleviate the financial constraints.The research of this paper is based on a series of theories,first of all,review the relevant literature research at home and abroad,combine the relevant theories to put forward the hypothesis to be verified,and then analyze the selected samples by empirical research method,and test the hypothesis.The cash cash flow model is used to measure the financial constraints,and the modified Jones model is used to measure the quality of accounting information.The results of the empirical study show that both the quality of accounting information and tax evasion can mitigate the financial constraints of the company to a certain extent.After comparing the effect of the two,it is found that the quality of accounting information has a more significant impact on the financial constraints.Based on the above theoretical analysis and empirical analysis,this paper thinks that the company can consider the two angles of providing high quality accounting information to the outside and adopting reasonable tax evasion ways to alleviate the financial constraints,and to improve the capital condition of the company's operation.Secondly,after a comparative analysis of the degree of accounting information quality and tax evasion,it is found that the effect of accounting information quality on financial constraints is more obvious.Therefore,in view of the shortage of funds faced by most enterprises in China,this paper holds that these two aspects can be done,but the effect of providing high quality accounting information is more helpful to alleviate the effect of financial constraints.According to the above research,the following suggestions are included:(1)improving the information disclosure system;(2)improving the evaluation system of accounting information quality;(3)improving the independence of the internal supervision organization.