Research On The Impact Of Corporate Tax Avoidance On Operating Performance

Corporate tax avoidance is a tax planning strategy conventionally used by modern enterprises and is an important part of investment and financing strategies.The ultimate goal of tax avoidance behavior is to maximize the shareholder's post-tax wealth.However,while corporate tax avoidance gains considerable cash flow,it will lead to a series of adverse consequences such as escalation of principal-agent conflict and increased information asymmetry.And information asymmetry will make management form “reverse selection” and “moral hazard” in tax avoidance decisions,the result of tax avoidance is to curb the improvement of business performance instead.There is no unified research conclusion on the economic consequences of corporate tax avoidance in the academic circle,and the impact mechanism of tax avoidance behavior on business performance remains controversial.Based on the concept of tax avoidance agency,the thesis makes an in-depth study on whether corporate tax avoidance can improve business performance.It is undeniable that micro-enterprise behavior is affected by macroeconomic policies.Under different monetary policies,the way in which corporate tax avoidance affects business performance may vary.As a result,the thesis intends to introduce monetary policy factors in the study of the relationship between corporate tax avoidance and business performance,and to study whether monetary policy has an impact on the relationship between the two and its impact mechanism.On the basis of combing the tax avoidance literature of domestic and foreign enterprises,the thesis finds that the existing literature mostly studies the influencing factors of tax avoidance behavior on the micro level,few scholars discuss the impact of corporate tax avoidance on performance from a macro perspective.Therefore,the thesis introduces monetary policy as a moderator,and analyzes the relationship among corporate tax avoidance,monetary policy and operating performance based on the theory of principal-agent theory and effective tax planning theory,and then proposes research hypotheses accordingly.The thesis takes the 2008-2017 Shanghai-Shenzhen A-share listed company as the original research sample,selects the corresponding moderators and establishes an empirical model to conduct empirical tests,thus validating the relationship between the three through descriptive statistics,correlation analysis,OLS regression analysis,and robustness examination.The results show that the increase in tax avoidance of enterprises significantly inhibits the improvement of operating performance,and that during the period of loose monetary policy,the effect of increasing agency cost of corporate tax avoidance is more obvious,leading to a more rapid decline in operating performance.The results also show that during the period of tight monetary policy,corporate tax avoidance plays a role in mitigating financing constraints,but only when it is tightened to a certain extent can it improve business performance.Finally,based on the results of the research,this thesis proposes corresponding policy advice from the three aspects : corporate tax avoidance should be alert to internal agency problems and pay full attention to monetary policy fluctuations and the defects of tax avoidance's mitigation of financing constraints,it also expounds the limitations of the thesis.