Information Transparency And Tax Avoidance

Tax is the most important source of fiscal revenue in our country,is an essential policy tool for the government to govern the country.Relatively,for enterprises,tax payment is an important financial expenditure,and to pursue profit maximization the company is usually to conduct tax evasion.Corporate tax evasion not only restricts the effective operation of the tax system,but also weakens the regulatory role of tax policies on the national economy.At the same time,the information transparency of China’s listed companies has become a strong factor of hindering the healthy and stable development of the capital market.Therefore,corporate tax evasion and information transparency have been widely concerned by the academic and practical circles.However,due to the special institutional background and market environment in China,few literature have discussed the influence of information transparency on tax evasion.This paper fist of all,defines the concept of tax evasion and information transparency.Secondly,on the basis of the previous relevant literature,analyzing the present situation of Chines company tax avoidance and problems of information transparency of Chinese listed company,and the traditional theory of tax avoidance and tax agency theory is used to construct the relevance between information transparency and the tax avoidance of the utility function.Then conducting theoretical analysis respectively using the intermediary effect and regulating effect to preliminary conclude the influence on tax value effect.Finally,an emprical model is constructed to test the above theoretical analysis on A-share listed companies listed in Shanghai and Shenzhen from 2009 to 2018.The main conclusions of this paper are as follows:(1)improving corporate information transparency in China can inhibit the degree of tax evasion,and it can be achieved by relieving financing pressure and restraining agency cost;(2)a perfect institutional environment can inhibit the degree of tax evasion.However,the current lax enforcement of tax law in China leads to the formalism of laws and regulations,and the enforcement of laws in various regions is not in place;(3)the monitoring function of information transparency is mainly promoted by the external mechanism of transparency(securities analysts and media attention).Therefore,securities analysts and media attention can serve as an effective alternative mechanism outside the law to make up for the lack of internal information transparency;(4)tax avoidance does not really serve the value of the company,but is taken advantage of by opportunistic managers,and the agent effect plays a dominant role in corporate tax avoidance motivation in China.The research conclusion of this paper not only enriches the literature in the field of information transparency and tax avoidance,and have enlightening effect to governmental regulation and business management:(1)For government,to perfect the information disclosure system,increase the efficiency of the tax collection and administration,expand external regulation mode for company information transparency and broaden company’s financing channels and others to improve our country market environment;(2)For enterprise,a complete the management incentive mechanism,internal control system and financial reporting system should be strengthened to improve corporate governance.