Researh On The Impact Of Corporate Tax Avoidance Behavior On Corporate Value Based On Life Cycle

Corporate income tax is one of the principal sources of national finance.However,the primary purpose of enterprises is profit,they are reluctant to share their earnings with others.Every company tries the best to transfer the profit to avoid tax and the primary purpose of corporate tax avoidance is to retain more funds to support the development of enterprises to support the development of enterprises and enhance corporate value.Although corporate tax avoidance can bring particular benefits to enterprises,it is not encouraging by the market and discovered easily by market surveillance departments.Therefore,enterprises will adopt more complicated and opaque transactions to implement tax avoidance,and such complex and opaque transactions are mostly managed by the management of enterprises,which inevitably increases the agency cost of the enterprise.The high agency cost will lead the decreasing of the enterprise value.It is not clear that corporate tax avoidance promotes or reduces the value of enterprises.This issue deserves further discussion.Based on the research of predecessors and other scholars,this paper studies the economic consequences of corporate tax avoidance in life cycle angle,and sees whether the relationship of tax avoidance and corporate value have a life cycle effect or not.At the same time,the research will further compare the differences in the relationship between tax avoidance and corporate value under different property rights.Firstly,based on the research of predecessors' literature and theoretical analysis,the research deeply analyzes the relationship between the life cycle stage,the nature of different property rights,corporate tax avoidance behavior,corporate value,and proposes corresponding hypotheses based on literature review and theoretical basis.Secondly,using the data from 2012 to 2017 of China's A-share listed companies for the past 6 years as the research object,which provides strong data support for the research.Finally,based on the research conclusions,put forward countermeasures and suggestions,and point out the inadequacies and research directions for the research.The conclusions of the research obtained through this study are as follows: Firstly,corporate tax avoidance behavior and corporate value are inverted "U" type,that is,when the degree of tax avoidance is less than a certain range,as the degree of tax avoidance increases,the value of the enterprise increases,beyond this range.The increasing tax avoidance will reduce the value of the enterprise;Secondly,the relationship between corporate tax avoidance behavior and corporate value will be “U”-shaped distribution as the life cycle progresses,and the relationship between the two has visible life-cycle effects.In the introduction period,the value of the enterprise can be improved,and the value of the enterprise has the most significant impact during the introduction period.In the growth period and mature period,the tax avoidance behavior of the enterprise has an adverse value effect,and it rebounds during the recession period.(3)The agency cost of enterprises has a trend of increasing first and then decreasing with the progress of life cycle;(4)further comparing the impact of corporate tax avoidance behavior on enterprise value under different property rights,the relationship between the two shows significant differences under different property rights.Therefore,enterprises should be cautious when choosing tax avoidance.They should select according to the nature of property rights in their life cycle.Tax authorities can also ‘teach students according to their aptitude' when formulating tax policies,and adopt a differentiated strategy appropriately.This research provides a reference for the path of the enterprise life cycle and to the value of the enterprise.