The Degree Of Separation Between Cash Flow Rights And Control Rights With Corporate Tax Avoidance Based On Private Listed Companies

Domestic and foreign scholars on the control of cash flow rights separation has been innumerable, and the company’s research on tax evasion are also numerous, but we found that few scholars to study the separation of ownership and control of the cash flow of the business this relationship between tax avoidance. Therefore, this paper summarizes the results of previous theoretical and empirical studies have examined the relationship between control rights and cash flow rights separation between corporate tax avoidance, the conclusion that the controlling shareholder control over cash flow rights separation of the different levels can significantly affect the Private Listed the controlling shareholder of the company tax avoidance choice.To study the control of cash flow rights separation is a significant impact on the private listed company tax avoidance, the paper first theory of domestic and foreign scholars on a brief review and analysis. Has the right to control the cash flow rights and control over cash flow rights separation of literature sort of work and company tax impact on the separation of ownership of corporate tax avoidance theory. Generate cash flow to find the right control whether the size of the separation of corporate tax avoidance activity will affect different theoretical basis. In the model building, we construct multiple regression models for their own empirical model after drawing at home and abroad. Model tax level on the left, on the right side of our model of the company to control cash flow rights separation as independent variables, in terms of control variables we selected the following indicators have net earnings per share growth and total assets turnover The Company was the size of EBIT proportion of independent directors and other shareholder and financial indicators. Finally, the impact of private listed companies tax avoidance data analysis by the empirical results of the control over the cash flow rights separation.The regression results show that the controlling shareholder of listed companies private separation of ownership of the smaller, more obvious corporate tax avoidance. That is the controlling shareholder control over cash flow rights separation corporate tax avoidance as a significant negative correlation. This is because when the separation of ownership and control of the cash flow of the big time, that control is far greater than the cash flow right, the controlling shareholder of income tax caused by far less than the risk posed by tax evasion, tax avoidance case company attention will decline. Conversely, control over cash flow rights separation is small, that is, control rights and cash flow rights difference is small, then through tax revenue brought about will greatly increase their income for tax evasion attention of private listed companies controlling shareholder.It will be greatly increased.Finally, we come to the relevant revelation of this paper empirical result. The Government should strengthen efforts to investigate corporate tax avoidance is the controlling shareholder of a company, especially control over cash flow rights separation when there is less concern should add more of the company’s tax situation. Strict supervision ensure that no loss of national revenues.