Enterprise Tax Avoidance,Executive Pay And Firm Value

Nowadays,the enterprise value is becoming the focus of the government and the society and company tax situation.Meanwhile,company tax situation is growing at home and abroad.This paper is based on the principal-agent theory,and it's aim to explore how executive pay effect on the relation between corporate tax avoidance behavior and firm value.In this article,we select financial statements and characteristics of executive data of more than two thousands of public companies from 2008 to 2015 as our main sample data,which are from WIND and CSMAR database.Then we select the fixed effect model of panel data regression method as empirical econometric analysis,we mainly analyze how the tax avoidance behavior of public companies impact on the firm value,and whether executive pay as regulating variable weakens the relationship between the corporate tax avoidance and the firm value,and based on our country's political and economic background,we list companies according to the different nature of the property to carry on the empirical analysis.At the same time,we also use Pearson test and multicollinearity test to eliminate collinearity problems in the model and ensure empirical results accurately.The results of our article show that the corporate tax avoidance is negatively related with the firm value.Namely the more tax avoidance behaviors the public company has,the smaller the firm value of the public company is.In addition,the executive pay as regulating variable will weaken the negative influence between the corporate tax avoidance behavior and firm value.And the higher executive pay is,the less negative impact on the influence between enterprise tax avoidance and firm value.The influence of tax avoidance between enterprises value and executive compensation adjustment in non-state enterprises is more significant than that in state-owned enterprises.