Relational Transactions, Environmental Uncertainty And Corporate Tax Avoidance

By the market mechanism and factor market limitations,chinese enterprises are often faced with abnormally high market transaction costs,Coupled with the "relationship-based" cultural traditions and the lack of investor protection mechanism,prompting our enterprises tend to with the major customers / suppliers for relationship-related transactions,to achieve cost reduction,complementary resources,value creation,and maintain a stable business relationship,and promote sustainable development of enterprises.Customer / supplier relationship-based transactions are based on an integrated,trusted or familiar relationship that relies on a few major customers and suppliers to conduct sales and sourcing transactions.At the same time,tax planning as an important value-added means of the enterprise,through the radical tax avoidance behavior to increase the potential benefits of enterprises in the transition economy has become a more common practical choice.At present,some research on the enterprise relationship transaction is relatively mature,but from the perspective of tax avoidance to explore how the relationship between the financial decision-making impact is relatively rare.Thus,this paper attempts to test whether the customer’s customer / supplier relationship-based transaction will affect the corporate tax incentives.In addition,the choice of enterprises in the market model of the transaction is bound to be affected by the environment,therefore,the introduction of environmental uncertainty indicators,test customer / supplier relationship-based transactions,environmental uncertainty and corporate tax evasion relationship,this provides a new perspective for understanding how intertwined business patterns and external environmental changes that affect students in specific cultures and institutions interact with each other.Firstly,based on the transaction cost theory,asset specificity theory,stakeholder theory and contingency theory,this paper analyzes the mechanism of customer/ supplier relational transactions and tax avoidance and the regulatory role of environmental uncertainty.Secondly,selecting our research samples of A-share listed companies from 2013 to 2015 in Shanghai and Shenzhen stock market,on the basis of univariate T test and Z test,conduct multiple regression analysis,examine the relationship between customer/supplier relationship-based transactions and tax avoidance,and the interaction between customer/supplier relationship-based transactions and environmental uncertainties in influencing corporate tax avoidance.Finally,according to the empirical results and theoretical analysis,this paper draws the conclusion and puts forward some suggestions.The results of this study found that:(1)The higher the degree of customer / supplier relationship-based transactions,the more radical the tax avoidance;(2)Taking the dynamic of environment as a starting point,a higher degree of environmental uncertainty will weaken the positive relationship between customer relationship and tax evasion,but this effect is not significant for supplier relational transaction;(3)Further consideration of the complexity and hostility dimension of environmental uncertainty,the positive correlation between supplier-related transactions and tax evasion is more pronounced when the diversity of the environment is lower;customer-related transactions and taxes The positive correlation between circumvention is more pronounced when the product market is highly competitive.According to the research conclusion,this paper puts forward the following suggestions:(1)To establish a good social system environment,reshape the "trust" of the market atmosphere;(2)To increase tax supervision,improve the relevant legal construction;(3)Enterprises should pay attention to the daily business activities in the environment changes,to explore and grasp the development opportunities.