Empirical Research on the Ultimate Controlling Right, Cash Flow Rights and Tax Avoidance Strategies Style

Abstract

This paper takes the 2008–2015 China-Shenzhen A-share private listed company as the research object, and analyzes the impact of the ultimate controlling power, cash flow rights and the separation degree of the two on the tax avoidance strategies empirically. The study finds that the ultimate controlling of private enterprises is positively correlated with the tax avoidance strategy style. There is no obvious correlation between cash flow rights and tax avoidance strategies style, but the degree of separation between ultimate control rights and cash flow rights is positively related to corporate tax avoidance strategy style. It means that the more dramatical the separation of ultimate controlling right and cash flow rights is, the more radical the company’s tax avoidance strategies style will be.