A Study On The Impact Of Tax Planning On Enterprise Values

With the development of the era of knowledge and the fierceness of the globalcompetition, the financial management goal of enterprise value maximizationbecomes an inevitable requirement for the modern enterprises. Tax planningoriginated in the middle of the19th century in Italy, which has been one hundredyears of the history so far. Moreover, since the middle of the20th century, taxplanning has been attracting the attention of taxpayers who seek to maximize theirown value. The concept of tax planning in this article is neutral, tax evasion excluded.Tax planning is an important financial management activity for the enterprises, whosesignificance lies in reducing the tax burden to maximize the enterprise value oncompanies by prior arrangement and management of the enterprise operating,financing and investing. So the study on the relationship between the tax planning andenterprise value has a very vital significance.Serious multiple agency problem exists in many enterprises in our country.Managers could obtain the economic benefits of tax planning by transferring thefortune to his name, thus harming the interests of shareholders and corporate. On theother hand, establishing an effective corporate governance is the micro foundation forthe market economic system of the orderly and efficient operation, which is also abasic premise for the development of the company and the important mechanism ofpromoting the listed company to realize their own value. In order to alleviate theagency problem, this paper puts forward the index called information disclosuretransparency which has the function of corporate governance. There is little empiricalliterature at home to study the relationship between tax planning and enterprise valuefrom the perspective of corporate governance. Therefore, study based on the angle ofcorporate information disclosure transparency, which can deepen the researchbetween the relations of tax planning and enterprise value, helps the managers toimprove the value of enterprises from the perspective of improving corporategovernance, combined with the tax planning measures.By applying the basic theory of accounting, management and economics, thisarticle investigates the impacts of tax planning on enterprise value from the angle ofinformation disclosure transparency. First of all, this paper reviews the related researches both at home and abroad, including the study on the influence factors oftax planning, the influence factors and economic consequences research ofinformation disclosure transparency, the impacts of tax planning on enterprise value.Secondly, this paper states the basic theories: information asymmetry theory,principal-agent theory and effective tax planning theory. Thirdly, the influencemechanism of tax planning on enterprise value were analyzed, then the variousinfluences of tax planning on enterprise value under different property rights werefurther discussed from the perspective of information disclosure transparency.Finally, in order to validate academic analysis, this paper selects the data from2010to2012of China’s listed companies in ShenZhen stock exchange and carries on fixedeffect model analysis to prove the three hypotheses in this paper.The mainly conclusions in this paper are as follows: Firstly, tax planning canimprove the value of the enterprise; Secondly, information disclosure transparency isthe mediation variables between tax planning and enterprise value. Namely, theenterprises with higher information disclosure transparency, who actively develop taxplanning activities, can significantly improve the value of the enterprise; Thirdly, onthe basis of the second conclusion, we divide the sample into state-owned andnon-state-owned groups according to the nature of the property. In comparison withthe state-owned enterprises, we found that in the case of other conditions unchanged,the improvement of information disclosure transparency in non-state enterprises willhave a more significant role in strengthening the influence between tax planning andenterprise value. This article puts forward several policy suggestions for enterprises:Managers should have the theory and consciousness of tax planning; Operators needto improve enterprise information disclosure transparency; The internal of theenterprise had better communicate with the tax authorities actively to reduce the risk.