Study On The Effect Of Executive Personal Characteristics On Corporate Tax Avoidance

Tax avoidance is an important subject of theoretical researching. With the gradual development of economy, the study of tax avoidance has been developed. Under the framework of the principal-agent theory in the modern enterprise, the enterprise ownership and management rights are separated from each other. Managers have the right to conduct daily management and to make business decision instead of the owners, so the managers will effect the operation of enterprises. Tax avoidance behavior belongs to the operating decisions of enterprises, needing the judgment and decision making by the managers, so managers can influence tax avoidance of enterprises.Articles of the relationship between managers and tax avoidance behavior are less. This paper uses the data of quoted company in China to research the relationship between managers’ personal characteristics and tax avoidance behavior. And will find the executive characteristics which effecting the tax avoidance behavior, to help the national tax department to improve the efficiency of the anti avoidance work.This paper consists of three parts. The first part is the introduction and basic theory, this part analyzes the significance and background of writing this paper. It summarizes the research status in domestic and foreign of the behavior of the executives and tax avoidance measure, and introduces the related theories, to provide the theoretical foundation for the following empirical research. The second part is the hypothesis, study design and analysis of empirical results. This part uses dates from 2000 to 2013 of listing Corporations in China to analyze the relation between executives’ personal characteristics and tax avoidance behavior by using the fixed utility analysis model, to validate the assumptions and obtain relevant conclusions. The third part is the policy recommendations, conclusions and outlook. In this part make some policy recommendations for the tax department’s anti-avoidance job according to the research conclusions. Want to be able to provide services for tax anti-avoidance working. Finally, it summarizes this article and makes some prospects, proposes the deficiency.Empirical studies conclude that the term of office, age of managers, professional titles will have a significant impact on the tax avoidance behavior. The longer of the term, executives will make lower degree of tax avoidance, the older of the managers, lower degree of tax avoidance. If executives have a degree in accounting executives related professional titles, they will take high degree of tax avoidance behavior. Divide business into state-owned enterprises and non-state owned enterprises to study the difference between them. We will believe that the state-owned enterprise executives’ personal characteristics making bigger influence on tax avoidance than non-state-owned enterprise, the influence of general manager bigger than the influence of the chairman. The conclusion of this research will provides service to the anti-avoidance working of administration department.