Corporate Tax Avoidance,Analysts' Attention And Investment Efficiency

Taxation is a way of economic distribution by the state.It is a mandatory obligation for enterprises,but enterprises usually implement tax avoidance in order to maximize their own interests.Corporate tax avoidance is widespread around the world,and every aspect of corporate financial management has the shadow of tax avoidance.Various tax avoidance methods have emerged and it is impossible to determine whether these methods are reasonable or illegal.Discussion topic.The traditional view of tax avoidance believes that tax avoidance can reduce the tax burden of enterprises,thus making the value of the enterprise improve.However,in the modern society,due to the separation of the two powers,tax avoidance is likely to cause asymmetric information inside and outside the enterprise and various agency problems.Investment is known as one of the carriages that promote economic growth and has an indispensable role in the economic development of the entire society.Investment is also very important for enterprises,which promotes the long-term sustainable development of enterprises,but many enterprises suffer from inefficient investment.At present,many studies have pointed out that agency conflicts and information asymmetry in entrusted agencies are important factors that lead to different investment efficiency of various enterprises.This provides an opportunity for this article to study whether tax avoidance will reduce investment efficiency.Moreover,studying the relationship between corporate tax avoidance and investment efficiency is conducive to improving my country's taxation system and promoting long-term economic development.Since enterprises usually avoid tax through income tax,this article explores the impact of corporate tax avoidance on investment efficiency from the perspective of corporate income tax.This article first combs the influencing factors of investment efficiency,the economic consequences of tax avoidance,and the relevant literatures concerned by analysts.Based on the principal-agent theory,information asymmetry theory,free cash flow hypothesis and effective tax planning theory,etc.The research framework of this article.This paper selects a total of 12,785 samples of A-share listed companies in my country from 2008 to 2017 to empirically test the relationship between corporate tax avoidance and investment efficiency,and further empirically analyzes the relationship between tax avoidance and overinvestment and underinvestment.At the same time,in order to test whether our country's analysts have played an active role in the capital market,this article adds analysts' attention to this moderating variable,and examines the role of analysts in regulating the relationship between corporate tax avoidance and investment efficiency.The study found that:(1)Corporate tax avoidance reduces investment efficiency.Tax avoidance is usually more complicated and not transparent,which makes accounting information lose its authenticity,increasing the information asymmetry between management and shareholders,companies and capital markets.At the same time,tax avoidance will reduce the sensitivity of salary performance and make management The implementation of rent-seeking or adverse selection behavior because of private interests makes its agency conflicts with shareholders more serious,and ultimately leads to a decline in investment efficiency through two aspects of information asymmetry and principal-agent problems.In addition,after dividing investment efficiency into over-investment and under-investment,it can be seen that corporate tax avoidance will mainly increase over-investment,but will have less impact on under-investment.(2)The negative relationship between corporate tax avoidance and investment efficiency is weakened as analysts' concerns increase.Analysts who have a place in the capital market can play their own supervisory role,improve the transparency of company information through published research reports,improve the quality of accounting information issued by companies,and reduce information asymmetry,which can make up for defects in corporate governance Make the management invest more prudently,reduce agency costs,avoid over-investment,and improve the investment efficiency.This paper also divides the degree of tax avoidance into high and low groups for regression test by median,and finds that under low tax avoidance,investment efficiency will decrease,but the negative correlation between the two is not significant,while under high tax avoidance The negative correlation between the two is significant.In addition,this paper adds the factor of internal control quality to study the relationship between tax avoidance and investment efficiency under different tax avoidance levels and different internal control qualities.It is found that only under high tax avoidance and low internal control quality,tax avoidance is significantly negatively correlated with investment efficiency.And when using the actual tax rate(Taxrate)covering various tax types to measure the degree of corporate tax avoidance,the two are still significantly negatively correlated,and the research results remain unchanged.At the same time,by replacing the measurement methods of tax avoidance and investment efficiency and using Heckman's two-stage and instrumental variable methods to conduct robustness tests to avoid sample selection errors,the results obtained are consistent with the previous ones.The possible innovations of this article are as follows: First,it makes the research on the economic consequences of tax avoidance and factors that affect investment efficiency more abundant.This article not only divides investment efficiency into under-investment and over-investment,but also studies the impact of corporate tax avoidance on investment efficiency,under-investment and over-investment,and the regulatory role of analysts' attention to the three groups of relationships.It further divides tax avoidance into high and low tax avoidance levels.Group to study the relationship between different degrees of tax avoidance and investment efficiency,underinvestment and overinvestment.And on this basis,the quality of internal control is added,and the relationship between tax avoidance and investment efficiency under different degrees of tax avoidance and internal control quality is studied,which is innovative.The second is from the perspective of external governance mechanism,this article regards analysts' attention as the moderating variable between tax avoidance and investment efficiency.On the basis of relevant literature and research results at home and abroad,there are few research results on the relationship between corporate tax avoidance,analyst attention and investment efficiency.This article analyzes its impact on corporate tax avoidance and investment efficiency from the perspective of analysts,Which enriches the relevant research that analysts are concerned about.Third,this article further studies the impact of the overall tax avoidance including value-added tax and other turnover taxes on investment efficiency.Since turnover tax is also a very important part of China's tax revenue,the scope of measurement of tax avoidance is expanded to better reflect enterprises Analysis of the relationship between corporate tax avoidance and investment efficiency.This article puts forward some suggestions based on the conclusions drawn:(1)Enterprises should rationally look at tax avoidance from a dialectical perspective,while enjoying preferential tax policies,establish awareness of tax liability,and at the same time improve the company's internal governance mechanism to make information more transparent 2.Lower agency cost and higher investment efficiency.(2)Regularly conduct continuing education and vocational training for analysts,strengthen their information collection and analysis capabilities,and at the same time strengthen the analysts' self-discipline management system so that they have the due independence and objectivity.Relevant departments should establish a sound industry supervision mechanism and reward and punishment system,so that analysts can objectively and fairly publish reliable research reports,deliver effective corporate information,and reduce information asymmetry.(3)The government should improve the taxation system,effectively monitor corporate tax avoidance,steadily promote tax reform,implement tax reduction and burden reduction,fundamentally reduce the tax burden of the enterprise,and increase the awareness of serving taxpayers,simplify the tax payment process,and pay taxes People reduce tax costs.