Research On The Impact Of Listed Company’s Executive Characteristics On Behavior Of Corporate Tax Avoidance

As the global economic integration and the development of China’s market economy, a growing number of enterprises have engaged in tax avoidance activities and taken a wide variety of tax avoidance means. The range of tax avoidance is related to the business management in all aspects. In the face of increasingly fierce tax base erosion, the task of safeguarding the state security of tax base has become more and more urgent. Under the severe situation, the determination and strength of our authorities against tax avoidance has greatly enhanced. The subterranean flow of anti-avoidance action is turbulent. Therefore, in order to help the tax supervision department corporate governance department prevent the unreasonable tax arrangements effectively, many domestic and foreign scholars are concerned about all multidimensional aspects of motivation of corporate tax avoidance and study on the influence factors.This article is based on upper echelon theory, principal-agent theory and bounded rationality hypothesis of classical theory. This article selects 2000--2014 years of sample data listed companies in Shenzhen and Shanghai which executives have changed.This paper discusses how executive background characteristics affect corporate tax avoidance, for example, executives of gender, age, education, tenure, political background, background functions and so on. The article finally found executive’s gender, age, political background, financial function background and chairman’s tenure, CEO’s education level have a significant impact on enterprises tax avoidance. Then the article found that if non-state-owned holding companies executives have higher degree, or a shorter term, or with political background, their company will have higher degree of tax avoidance. The possible innovation point of this paper is that we have studied the relationship between the executive political background and corporate tax avoidance and finally have confirmed that executives with political background have significantly positive influence on enterprise’s tax avoidance, especially for the non-state-holding enterprises.The paper reveals the influence mechanism between the executives’ personal effect and enterprises tax avoidance and aims to gain more initiative in the struggle against anti tax avoidance for tax supervision department. For businesses, Supervisory Board may establish relevant preventive and monitoring mechanisms. For the government, if executives have the above background characteristics, especially for non-state-owned enterprises, the tax supervision department could put these enterprises as a key object of supervision and prevent the tax avoidance behavior of these enterprises effectively, which not only can improve the efficiency of anti tax avoidance struggle to a certain extent, but also prevent the unreasonable tax arrangements effectively and nit corporate tax avoidance in the bud.