Abstract
Based on the data of A-share listed companies in 2004-2018, this paper discusses the possible economic consequences of corporate tax avoidance from the individual level of executives. In this paper, the degree of corporate tax avoidance is divided into aggressive tax avoidance behavior and passive tax avoidance behavior, respectively, to study the impact of different degrees of tax avoidance on executives forced to be replaced by listed companies. It is found that both aggressive tax avoidance and passive tax avoidance will lead to forced executives turnover. In addition, this paper also examines the moderation effects of the nature of property rights, the performance of corporate social responsibility and market concentration on the above-mentioned research, and finds that private companies, companies that perform social responsibility well and companies in areas with fierce market competition, the passive tax avoidance behavior has a greater impact on executives forced turnover.
Highlights
Compared with the developed countries such as Britain, the United States, Germany, France and Japan, the development of China’s capital market and financial market is relatively backward
When ETR is at the highest level (5th quantile), higher = 1, which means that the gap between the effective tax rate and the industry average tax rate is the smallest, and executives engaged in passive tax avoidance; when the effective tax rate ETR is at the lowest level (1st quantile), lowETR = 1, which means that the gap between the effective tax rate and the industry average tax rate is the largest, and executives engaged in aggressive tax avoidance
In the Model (2), the coefficient of highRATE is significantly positive, indicating that aggressive tax avoidance will increase the probability of executives being forced to replace, and the coefficient of lowRATE is significantly positive, indicating that passive tax avoidance will increase the probability of executives being forced to replace
Summary
Compared with the developed countries such as Britain, the United States, Germany, France and Japan, the development of China’s capital market and financial market is relatively backward. This paper discusses the economic consequences of tax avoidance from the perspective of forced turnover of executives in listed companies. It summarizes the research of this paper and points out the contribution and deficiency of this paper. It puts forward the corresponding policy suggestions
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