Independent Director Network Location And Corporate Tax Avoidance

In China,more and more enterprises choose to use reasonable and legal means of tax evasion to reduce their tax burden in order to pursue value maximization.However,the tax avoidance of enterprises needs to be viewed dialectically.Professional and covert tax avoidance activities give the management the opportunity to seek personal gains through the use of power,which will generate agency costs.Therefore,tax avoidance may not only increase the enterprise value because of tax saving income,but also reduce the enterprise value because of high tax avoidance costs.It is found that the management will naturally reduce aggressive tax evasion when effectively supervised,so how to strengthen the restraint on the management in the modern corporate governance system?China introduced the independent director system in 2001,hoping that the independent director could play a role in the process of corporate governance.However,since the establishment of the independent director system,the theoretical and practical circles have been questioning whether it really plays a role in governance.Research on the governance effect of independent directors in academic circles mostly focuses on individual factors.After the theory of social relations was put forward,some scholars began to try to replace the characteristics of individual attributes with the characteristics of network relations between individuals.In this paper,independent directors are placed in the research framework of social network,and a network of independent directors is constructed through independent directors concurrently serving as directors.Based on the reputation mechanism and information transmission mechanism of the network of independent directors,this paper selected the data of Shanghai and shenzhen a-share listed companies from 2008 to 2017 as research samples to empirically test the relationship between the network location of independent directors and tax evasion.Considering that listed companies in China are faced with complicated internal and external environment,this paper further investigates whether marketization degree and management power will affect the mechanism of independent director network.Finally,this paper introduces the relationship between tax evasion and enterprise value by introducing the network location of independent directors,so as to investigate the economic effect of the network location of independent directors on enterprises in a more comprehensive way.Centering on the research topic,this paper is composed of the following six parts:The first part is the introduction.This part first explains the research background of this paper,and elaborates the theoretical and practical significance of the topic.Secondly,clarify the research ideas of this paper and design the structural framework of the article.Finally,the research methods used in this paper are elaborated and the innovations are pointed out.The second part is a literature review.This part elaborates the related concepts involved in this paper,sorts out the relevant research of scholars at home and abroad,and reviews the existing research.The third part is the theoretical analysis and research hypothesis.This part introduces the theoretical basis of this paper,analyzes in detail the mechanism of the influence of the network position of independent directors on the degree of tax avoidance of enterprises,discusses the influence of marketization degree and management power on the above relationship,and further introduces the independent director network into tax avoidance and Analysis of the correlation of corporate value.The fourth part is the research design.Firstly,according to the sample data needed for empirical analysis,the data source and screening process are introduced respectively.Secondly,the measurement methods of the main variables and the selection of control variables are introduced.Finally,the empirical model is established with reference to the relevant authoritative literature.The fifth part is empirical research.Firstly,the overall descriptive statistics and correlation analysis of the relevant variables selected in this paper are used to eliminate the influence of multicollinearity.Secondly,empirically test the main hypothesis of this paper.Then,further test whether the network center of independent directors will avoid tax avoidance and enterprises.The mechanism of action between values has an impact;finally,the main logic of the previous empirical analysis is verified for robustness.The sixth part is the conclusion and outlook.This part systematically sorts out the research process of this paper,and summarizes the research conclusions based on the empirical results.In addition,this part proposes policy recommendations based on the research conclusions and summarizes the limitations of this study.It is expected to be instructive to all parties involved.The main conclusions of this paper are as follows:(1)The network position of independent directors does have a negative impact on corporate tax avoidance.The specific performance is that the higher the network center of independent directors,the lower the tax avoidance degree of enterprises;(2)the market with the region Compared with companies with higher degree of marketization,the network center of independent directors of listed companies with lower marketization in the region has a stronger impact on the company's tax incentives;(3)management power weakens the network center of independent directors to enterprises.The suppression of the degree of tax avoidance;(4)The network position of independent directors can alleviate the impairment of corporate value by tax avoidance.The innovations of this paper are as follows:(1)This paper innovatively selects the degree of tax avoidance of enterprises as a research perspective,verifies the influence of the network position of independent directors on its governance effect,and enriches the research on the network of independent directors;(2)based on the corporate governance framework,The paper examines the role of independent directors in influencing corporate tax avoidance decision-making,examines the effectiveness of independent directors' supervision mechanism in corporate tax avoidance decisions,and expands the research on the factors affecting corporate tax avoidance;(3)this paper will separate independent directors' network location and tax avoidance The enterprise value is placed in the same research framework to explore the impact of the network position of independent directors on the relationship between tax avoidance and corporate value,enrich the relevant research on tax avoidance economic consequences,provide empirical evidence for relevant fields,and improve the value of tax avoidance behavior.Research system.