Research On The Difference Of Property Rights, Corporate Tax Burden And Accounting Conservatism

As one of the most important principles of accounting,accounting conservatism is the basic requirement to ensure the quality of accounting information.It represents a differential verification between uncertain revenue and expected losses.In recent years,governance focus on optimizing tax structure,implementing a general tax reform,making policies to reduce taxes.Without doubt,tax plays a decisive role in our national economy.However,as an influencing factor,there are still few researches on the relationship between tax burden and accounting conservatism which has been advanced by Watts in 2003.Therefore,the study of whether the tax burden will affect its accounting conservatism has certain theory value and the reality guiding sense.First of all,according to existing research results,the scale of item received in advance is a forecast for corporate performance.Generally,the enterprises which performance well will burden equally ‘well’ tax payment.The heavier tax payment enterprises burden,the motivation of tax avoidance will be stronger,the degree of accounting conservatism will be higher.Here,higher degree of accounting conservatism can reduce enterprises actual tax payment.Taking item received in advance as a base,this article plans study the relationship between tax burden and accounting conservatism which under the purpose of tax avoidance.This paper selects the listed companies in Shanghai and Shenzhen stock markets from 2014 to 2018 as sample.To test the positive correlation between items received in advance and tax burden level,we establish the linear regression model.Then,based on the measures Ball and Shivakumar given in 2005,we use several approaches such as descriptive statistics,correlation analysis,multiple regression analysis to verify above hypothesis.This study found:(1)For the listed companies in China,there is an obvious positive correlation between item received in advance and tax burden;(2)For the listed companies in China,there is a significant positive impact of item received in advance or tax burden on accounting conservatism;(3)After dividing samples into two parts according to property right,state-owned companies express a weaker positive impact of item received in advance or tax burden on accounting conservatism.The effect between tax and accounting conservatism has been proved once more in this article.Research conclusions of this paper not only extend the study perspective in accounting conservatism,but also focus on property right which rooted in specific national condition in China.Researching the impact of tax burden on accounting conservatism in different property offers theory support on optimizing tax structure and proposals on tax administration.