The Influence Of Negative Reputation On Behavior Of Corporate Tax Avoidance

High-quality micro-enterprise entities are the micro-foundation for high-quality economic development.As a representative of China’s outstanding enterprises,high-quality listed companies are not only the cornerstone of the healthy development of the capital market,but also a strong support for high-quality economic development.And internal governance and external supervision are the key magic weapons to improve the quality of listed companies.However,due to the imperfect internal governance mechanism and imperfect external supervision,in recent years,the violation behaviours of companies have occurred a lot,which not only caused damage to the interests of investors,blocked the operation of the market,but also impaired the reputation of the company.Negative reputation caused by the penalty has an impact on the company’s internal governance and investment and financing decisions,and has aroused the attention of the company’s external stakeholders.At present,academic research on listed company violations and regulatory penalties mainly focuses on the impact of violations or punishment announcements on corporate governance,financing activities,and auditors’ decision-making.There is not enough attention to the decision-making adjustments of corporate tax avoidance behaviors after penalties.This article takes corporate tax avoidance activities as the research object,focusing on the impact of the negative reputation formed by the penalty announcements issued by regulatory agencies on corporate tax avoidance decisions,in order to provide meaningful inspiration and reference on improving the regulatory system and the governance of corporate tax avoidance behavior.First,this article combs and summarizes the relevant research on negative reputation and corporate tax avoidance,defines the concept of negative reputation and corporate tax avoidance,and then details the basic theories related to the research.Based on explaining and discussing the positive impact of negative reputation on the degree of corporate tax avoidance,put forward the basic research hypothesis of this article,and establish a framework for analyzing corporate tax avoidance affected by negative reputation under the reputation mechanism.By treating the penalty announcement issued by the regulatory agency as the negative reputation impact of the company with violation behaviors,the tax avoidance effect of the negative reputation is explored.Therefore,in the part of current situation analysis,this article analyzes the current situation of listed companies’ violation punishment system and corporate tax avoidance.On the one hand,it introduces the types and distribution characteristics of violations of listed companies in China,and clarifies the institutional background of penalties for violations by regulatory agencies.On the other hand,it describes the current situation of taxation burden in our country,and analyzes the current situation of tax avoidance in three aspects: the severity of corporate tax avoidance,the reasons for tax avoidance and the ways of tax avoidance.Secondly,in terms of empirical analysis,based on the research hypotheses proposed under the reputation mechanism and signal transmission theory,this article constructs a double differential mode and a two-way fixed effect model.By using 2000 to 2018 as the sample period of this article,the violation penalty variables of A-share listed companies are matched with the corporate tax avoidance data to empirically test the research hypothesis that the negative reputation of companies with violation behaviors prompts companies to increase tax avoidance,and further explore its intrinsic influence mechanism.The empirical results verify the validity of the research hypothesis,and the conclusion has passed robustness tests,including the change of variable measurement index,parallel trend test,elimination of alternative explanations and treatments of endogenous problems.The analysis of heterogeneity found that the impact of negative reputation on the degree of corporate tax avoidance shows obvious heterogeneity in corporate property rights,governance level,the intensity of tax administration,and the intensity of negative reputation: Negative reputations have a more significant tax avoidance effect in non-state-owned enterprises and regions with weaker intensity of tax administration.And the stronger strength of negative reputation has a greater positive impact on the degree of tax avoidance of enterprises;Quantile regression results shows that for companies with different levels of tax avoidance,there are also certain differences in the tax avoidance effect produced by the negative reputation.Finally,based on the theoretical and empirical analysis of the previous article,the relevant conclusions about the tax avoidance effect of negative reputation are summarized.Based on this,this paper put forward specific policy recommendations on the improvement of the design of the regulatory system,the tax collection and management system and the company’s internal governance mechanism.Under the current background of the new era of promoting high-quality economic development,the research in this article has important enlightenment significance for regulating the behavior of microeconomic entities and improving the tax collection and management system.