Study Of Tax Enforcement As A Corporate Governance Mechanism

The government through taxation this legal mandatory tool for enterprise behavior and has an important effect on taxes, academic research is mostly individual taxes, such as income tax and value-added tax and dividends tax on capital structure effect, visible taxes is the important influence enterprise behavior external forces. But if tax as a corporate governance mechanism, which plays its role is the core problem is studied in this paper. First, this article through a region tax (including duty and land tax on its analysis) construct tax collection, then through efforts index of tax collection could affect the company's strength index two kinds of agency cost (ie shareholders -- managers the principal-agent cost and between big shareholder and the agency costs between small shareholders). Shareholders and managers principal-agent cost this paper completely between Ang (2000) from the experience of agency cost for research on the index management fee (measure MSAC) = management cost/advocate business wu income. Big shareholders and small shareholders the agency costs between the reference in this paper Cheung etc (2006), Berkman etc(2008) years of related transactions, they point out that the study related transaction is big shareholders occupy small shareholders' interests, they use a means of RPT to dumb variables related transaction for measurements, 1 says company related transaction, zero indicates that there exists the connection transaction not. This paper also take this kind of method to measure the big shareholder occupy behavior. Through theoretical and empirical analysis, this paper (1) tax collection strength strong area between managers and shareholders, the principal-agent cost weakly. (2) In tax collection efforts stronger areas, listed companies related transaction phenomenon happens less, thereby lowering the big shareholders of small shareholder expropriation behavior. To sum up, as a kind of tax collection can play its exterior governance mechanism of corporate governance functions. Tax authorities may through the tax collection efforts to emerging market economy regulation. This study also for the theory and real world opened on corporate governance research new horizon.