Will The External Pay Gap Of Executives Increase The Degree Of Tax Avoidance?

In recent years,the issue of executive compensation has attracted the attention of scholars.The exposure of sky-high executive compensation news has turnmed the eyes of society and scholars from the absolute salary of executives to the fairness of executive compensation.The perception of whether executives are fair about their compensation will affect executive behavior,which in turn affects the interests of company owners.Executive pay gap as a measure of fairness has attracted the attention of scholars.However,the current research on the executive pay gap is mainly focused on the intermal pay gap of executives,that is,the gap between executives and employees,the research on external pay gap,that is pay gap between executives and comparable company executives in the same industry,are still insufficient.However,the impact of the external pay gap of executives on executive behavior cannot be ignored.When the external pay gap of executives is too large,executives will cause comparing mentality,let executives encroach on company profits through non-efficiency investments,on-the-job consumption,and other acts.Tax avoidance with complexity and opacity ean save cash flow and create space for executives to occupy profits,and become a cover to cover these behaviors.This article reviews and analyzes the literature on the effect of executive pay gaps on corporate performance,the effect of executive pay gaps on earnings management,the effect of executive compensation on corporate tax avoidance.The impact of executive external on corporate tax avoidance is insufficient and has become the entry point for this article.Based on the principal-agent theory,social comparative theory,incentive theory and comparison psychology,taking the ratio of average salary and executive compensation of comparable companies in the same industry as the external compensation gap the,paper analyzes the impact of executive extermal pay gap on corporate tax avoidance,and incorporate the nature of property rights and tax collection and management intensity into grouping variables,and puts forward the research hypothesis.Descriptive statistical analysis,correlation analysis and multiple regression analysis of A-share listed companies in Shanghai and Shenzhen stock exchanges from 2009 to 2016.The research results show that the greater the external pay gap of executives,the higher the degree of corporate tax avoidance,that is,the executives will make up the pay gap and restore the fair perception through tax avoidance behavior;compared with the state-owned enterprises,the impact of the non-state-owned enterprises pay gaps on corporate tax avoidance behavior is more significant,and the increase in tax collection and management force will weaken the positive impact of the executive pay gap on corporate tax avoidance behavior.