Research On The Impact Of Corporate Governance On Tax Avoidance

Research on the influencing factors of tax avoidance is an important issue in the theoretical study of tax avoidance.In corporate financial management activities,tax avoidance can increase the retained earnings of enterprises,promote enterprises to more effectively participate in product market competition,effectively respond to competitors' market strategies,establish competitive advantages,and consolidate strategic positions.Tax avoidance behaviors play an important role in corporate business decisions.Reasonable and standardized Tax avoidance can increase the company's after-tax profits,promote the sustainable development of the company,and improve the company's performance.With the separation of corporate control and management rights,the objective functions of shareholders and management are different,and managers use Tax avoidance activities to hide their rent-seeking behaviors for the purpose of grabbing private profits,which can damage corporate value.Based on the principal-agent framework,the discussion of corporate tax avoidance has become a general trend.Exploring the interactive impact of the relationship between corporate governance and tax avoidance will further deepen the understanding of corporate taxpayer behavior.Under the above background,this paper studies the impact of Tax avoidance from both internal and external governance,explores the relationship between corporate governance and Tax avoidance from multiple dimensions,uses quantile regression research methods,and analyzes the differences between corporate governance mechanisms.The impact of the degree of Tax avoidance has enriched the research on Tax avoidance and provided reference for further research on Tax avoidance,which has important theoretical and practical significanceThis article starts from theoretical analysis and empirical research.Through combing the research between different companies at home and abroad on corporate governance and tax avoidance,it is found that there have been more studies to explore its impact on tax avoidance from a single aspect of corporate governance,and No unanimous conclusion has been reached.This article considers the comprehensive role of corporate governance factors and analyzes the impact on tax avoidance from the perspective of internal corporate governance and external corporate governance Internal corporate governance is divided into three dimensions:board characteristics,managerial incentives,and equity structure,and external governance is divided into institutional investment.And the legal environment.Based on the effective tax planning theory,principal-agent theory and information asymmetry theory this paper establishes a quantile regression model of corporate governance and tax avoidance,taking 2009-2018 listed companies in Shanghai and Shenzhen as the research sample,through Correlation analysis,panel regression analysis,and quantile regression analysis explored the impact of board characteristics,managerial incentives,shareholding structure,and external governance factors on tax avoidanceThis paper draws the following conclusions through theoretical analysis and empirical testing:(1)Under the high rank of tax avoidance,the size of the board of directors is positively related to tax avoidance;the proportion of independent directors and tax avoidance have a significant negative impact;the more the number of board meetings,the stronger the effect of suppressing tax avoidance;Independent directors in the background have a deterrent effect on tax avoidance.(2)Equity incentives and tax avoidance have a significant positive impact;the promotion effect of salary incentives on tax avoidance has a greater impact in the high quantile.(3)Under the high tax avoidance ranking,the higher the concentration of corporate equity,the greater the degree of tax avoidance;state-owned enterprises are more conservative than non-state-owned enterprises in tax avoidance.(4)Under the high tax avoidance ranking,the higher the proportion of institutional investors holding shares,the stronger the tax avoidance degree of enterprises;the companies listed on other markets have a stronger tax avoidance degree.The above conclusions comprehensively summarize the impact of corporate governance on tax avoidance,and further supplement the influencing factors of tax avoidance.The relevant research in this article helps companies establish a sound board mechanism and improve their internal oversight system;at the same time,this article provides a more comprehensive idea for corporate shareholders to strengthen the tax supervision of managers;The protection of the company provides a new perspective.It is recommended that the infrastructure of the information disclosure system should be improved,companies should be encouraged to disclose their business results in various forms,and the transparency of the company's financial information should be improved to effectively protect investors' rights.