The Research On Impact Path Of Tax Ecology Environment On Corporate Value

None of individuals exist in isolation.They are organic whole.So the impact of tax avoidance effect on corporate value is also influenced by exterior environment.Tax ecology environment have direct effects on corporate value as exterior environment.Tax ecology environment have indirect effect on corporate value by tax avoidance behavior.Domestic and foreign scholars have different views about tax avoidance behavior of corporates.On the one hand,based on effective tax planning theory and pecking order theory they hold that tax avoidance will increase corporate value;on the other hand,based on information asymmetry theory and the principal-agent theory they hold that tax avoidance behavior will reduce corporate value.The paper uses the data of 31 provinces,autonomous regions and municipalities from 2007 to 2016 as research sample to construct an index system of tax ecology environment by factor analysis method.The index system includes the development degree of economy,the legal environment,the taxation management,the level of education,credit culture and social insurance.Then areas are classified into two categories by cluster analysis.Based on the system theory,effective tax planning theory,pecking order theory,information asymmetry theory and principal-agent theory,this paper uses samples of Listed Companies in Shanghai Stock Exchange A shares and Shenzhen Stock Exchange A shares to examine the impact of tax ecology environment on corporate value from 2007 to 2016.The paper also analyzes the paths between tax avoidance behavior and corporate value in different tax ecology environment.There are five conclusions:(1)The better tax ecology environment is,the higher corporate value will be.(2)The corporates will adopt tax avoidance strategy in good tax ecology environment.(3)Tax ecology environment will influence corporates through tax avoidance behavior.Then corporate value will improve.(4)The tax avoidance behavior produces financing constraint mitigation path and improves corporate value in good tax ecology environment.(5)The tax avoidance behavior produces agency cost increase path and reduces corporate value in bad tax ecology environment.This paper puts forward some suggestions on improving score of tax ecology environment and reducing financing cost and agency cost based on empirical results.There are six suggestiongs on improving score of tax ecology environment:(1)Transforming economic developing mode and training new power of economy development.Government should develop the third industry and most advanced industry,construct medium service platform and establish resource database.(2)Improving laws and regulations and constructing intermediary.Government should improve legislative ability and law firms should improve their operation level to help taxpayer pay taxes by law.(3)Improving the level of collection management and establishing penance mechanism.Government should improve monitoring of taxation,publish the corporates of defrauding tax and severely punish to deter corporates.(4)Recreasing input of education and improving tax propaganda.Related organizations should organize study of tax filing process to cultivate civic awareness and encourage taxpayers' sense of self-compliance.(5)Strengthening construction of credit culture culture and establishing building of credit information system.Related organizations should enhance publicity of credit culture by mass media.They also should establish database of credit and give corporates different policy based on credit rating.(6)Recreasing employment opportunities and improving social security system.For example,special funds of reemploy laid-off workers.There are two suggestiongs on reducing financing cost and agency cost:(1)Improving the information disclosure and ease of financing constraint.Corporates should improve the information disclosure to reinforces credibility of accounting information.(2)Consummating internal government structure and reducing agency cost.For example,dispersing high concentrated ownership and increasing the percentage of independent directors.There are two innovative points in the paper:(1)Constructing an index system of tax ecology environment to evaluate tax ecology environment.(2)Verifying the path of tax ecology environment on corporate value.Tax ecology environment directly affects corporate value.Tax ecology environment indirectly affects corporate value by tax avoidance behavior.Tax avoidance behavior will affect corporate value by financing constraint and agency cost in different tax avoidance behavior.