Research On Tax Avoidance Effects Of CFO's Financial Expertise

Tax avoidance,accompanied by the beginning of taxation,is rife with the rapid development of economy.As a common problem over the world,tax avoidance is not only related to national finance,but also closely related to economic order,social equity and national stability.To a certain extent,tax avoidance is harmful in that it reduces our national financial revenues and affects the fair competition order of the market economy,which will pose a threat to the long-term interests of the country and shake its foundation.Therefore,it is necessary and important to explore the motivation of corporate tax avoidance.In view of the available literature on the relationship between the characteristics of CFO and corporate tax avoidance is somewhat poor,this paper,by taking the financial expertise of CFO as the entrance point,on the one hand,through the literature review and theoretical analysis,clarifies the CFO not only have an incentive to implement tax avoidance,and have the ability,have the opportunity to implement tax avoidance,which fully explain the role of CFO in corporate tax avoidance and how CFO influences the tax avoidance.On the other hand,through empirical study,the paper selects samples from all A-share listed companies from 2008 to 2016 to empirically test the tax avoidance effect of CFO's financial expertise,as well as the moderating effect of property right,CFO's directorship and CFO's ownership.The results show that CFOs with financial expertise can significantly increase the degree of corporate tax avoidance.Compared with non-private enterprises,the tax avoidance effect of CFO's financial expertise is stronger in private enterprises.When the CFO doubles as a director,the tax avoidance effect of CFO's financial expertise is stronger.The higher the CFO's shareholding,the greater the tax avoidance effect of CFO's financial expertise.Based on the above research results,this paper not only complements the existing research on the influencing factors of corporate tax avoidance in theory,but also enriches the Upper echelons theory.In a practical sense,it provides valuable reference for selection and appointment of CFO,helps investors to have a deeper understanding of financial behaviors of listed companies,and provides empirical evidence for investors' investment decisions.