Research On The Impact Of Diversification Strategy On Corporate Tax Planning

With the economic and social development and the in-depth implementation of the national “tax reduction and fee reduction” policy,the importance of tax planning has become increasingly prominent.Diversification strategy,as one of the overall strategic types,has a topdown and all-round impact on enterprises,and has a certain role in promoting the tax planning behavior of enterprises.This paper puts the tax behavior of enterprises in the perspective of diversification strategy,which provides a new perspective for the study of diversification strategy and tax planning,enriches the existing research,and helps enterprises to formulate tax planning plans that conform to their overall strategy,weigh the planning costs and benefits,and achieve the goal of maximizing after-tax benefits.On the basis of information asymmetry theory,non-tax cost theory and strategic management theory,combined with theoretical analysis and empirical test,this paper argues that diversification strategy will promote corporate tax planning behavior for the following reasons.Firstly,enterprises with diversification strategy have more flexibility in organizational structure and higher risk tolerance,so they have more willingness and ability to carry out tax planning.Secondly,in the process of diversified development,enterprises can make better use of tax system differences in tax planning by choosing to enter different industries and regions and choose the organizational form of branches.Thirdly,the complex network of related parties formed by diversification makes the overall tax planning between related parties more convenient.On this basis,this paper also considers the impact of different property rights,supervision,and organizational strategy types.This paper takes the 2013-2017 China A-share main board listed company as the research sample,and the empirical test results are as follows:(1)Diversification strategy has a positive effect on corporate tax planning behavior;(2)Compared with enterprises adopting defensive organizational strategic structure,the diversification strategy of enterprises adopting pioneering organizational strategic structure has more significant impact on corporate tax planning behavior.(3)Compared with non-stateowned enterprises,the diversification strategy has more significant impact on corporate tax planning behavior in state-owned enterprises;(4)in areas with strong tax supervision,the diversification strategy has a more significant impact on corporate tax planning behavior;(5)In the case of high quality external audit,the diversification strategy has a more significant impact on tax planning behavior;(6)For companies with high media attention,the diversification strategy has a more significant impact on tax planning behavior.