Research On The Relationship Between Tax And Corporate Behavior

With the development of our society, our country’s tax system and tax policy also will adjustmentand improvement in constantly, in order to better fit the needs of economic and social development, greatchanges have taken place in our country’s tax system, especially since China’s reform and opening up themarket, after the establishment of socialist market economy. Besides, the changes of tax system and taxpolicy have very important influence to the domestic companies, the changes of our country’s tax systemand tax policy, in the year of1980to2008, great changes have made in the enterprise income tax andcontent, the relevant provisions of the tax policy adjustment and modification, directly affect the enterpriseproduction and management behaviors, among these aspects, the tax burden and tax policy is one of themost important aspects of the earnings management behavior of enterprise.In addition to the company’s operating behavior, they will be affected by the influence of the stateor the government’s tax system and policy, other reasons may also involved.When the listed companies carries on the earnings management behavior, as a corporatemanagement, tax is the main factor of its consideration, the changes of the tax policy and tax policy, notonly causes the company direct spending increase of tax revenue, it will also increase the company’snon-tax cost, therefore, in order to maximize their own interests, in the relevant tax system on the basis ofearnings management, the listed companies usually have to optimize financial reporting purposes. At thesame time, based on the research of the listed company income tax rate on the company’s earningsmanagement motivation, the relationship between them shows that listed companies can achieve earningsmanagement goal by manipulating the taxable items, also will help enterprise management to deepen thefurther understanding of earnings management, and can help enterprise’s management to make a correctchoice of accounting policies accordingly, finally, their will have a positive impact on the production andmanagement behavior of listed companies.Based on the selection and the impact of tax and the tax regime for listed companies earningsmanagement behaviors, in terms of tax rates, mainly from the research company tax earnings managementof listed companies conduct an empirical analysis of listed companies, which mainly through profit or loss on a non-taxable items manipulation to balance the cost of taxes and tax burden, thus effectivelycircumvent the tax costs of earnings management, and analysis of empirical analysis by the tax rate andearnings management concluded that proof of tax and corporate tax system behavior relationship.This paper is divided into six parts, which specifically includes:The first chapter introduces the background of this paper, includes significance, purpose, researchideas and articles structural framework.The second chapter reviews the major findings and theoretical concepts relevant literature inChina and abroad, and to study the relationship from tax planning and earnings management as a startingpoint, summed up the change in the tax system and tax policy, the major analysis of tax changes in incometax Research and tax earnings management.The third chapter, the theoretical analysis, first of all concepts associated with this articledescribes and explains the basic theory associated with this article, the concept of income from economictheory and the concept of information explained the company has reduced the cost of the tax incentive, inthe analysis of the current tax reform on the basis of our country, described herein select income reasons forresearch, the final analysis of the relationship between income and earnings management.The fourth chapter, empirical research design, including design research model, assuming thatresearch model, selecting the research model variables, as well as research sample selection, which mainlybased on the theory before on the proposed hypothesis, the higher the income tax costs, the companyearnings management is more inclined to choose to achieve earnings management purposes by non-taxableitems.The fifth chapter, empirical part, the basis of the text of the previous empirical research design,building and variable depending on the design of the model, as well as collecting and selecting theShanghai Stock Exchange A share listed companies manufacturing2009,2010,2011empirical test of953samples for tests and analysis, the final results of the survey were analyzed to prove that the correlationbetween the presence of a listed company income tax and corporate earnings management, that companiescan gain or loss on the non-taxable items manipulated to some extent, which will be able to reduce tax cost.The sixth chapter, the conclusions and recommendations section, on the basis of theoreticalanalysis and empirical testing, through studies show that changes in the tax system and tax policy changes significantly affect the tax burden to the corporate tax burden, but also proved that, the more the higherincome tax burden, many enterprises are more choices of non-taxable items earnings management behavior,but also for the development and modification of accounting policies and related activities for listedcompanies made earnings management Policy recommendations for effective regulation and control.