A Study On The Influence Of Executive Incentive On Tax Planning

Tax planning is an important subject in the study of the maximization of enterprise value.Under the principal-agent mechanism,the existence of the separation of the two powers makes it possible for shareholders and managers to make a different choice.However,as the core decision-making subject of the company,managers may take acts that are not conducive to maximizing after-tax benefits because of self-interest.Therefore,a set of effective all-round incentive mechanism plays a pivotal role in the company's future development,and it makes the manager's self-value to achieve convergence with the interests of the company to maximize.Therefore,what kind of role will the executive incentive plays in the enterprise's tax planning activities becomes the focus of academic research.This paper starts from the theory of principal-agent,then discusses the theory of executive incentive,tax planning and the mechanism of its influence.Based on the A-share listed companies in Shanghai and Shenzhen from 2013 to 2016,the relationship between dimensions and tax planning is tested by using the multiple linear regression model.The empirical results show that the executive incentive,equity incentive and control incentive of listed companies in our country have positive effect on the tax planning degree,the positive effect of equity incentive and control incentive are obviously better than monetary reward incentive.Consumption promotion will inhibit the enthusiasm of executives to carry out tax planning activities.The main content of this paper is divided into four parts:The first part includes the first chapter and the second chapter of this article,it elaborated the research background,the research significance,the research method as well as the content frame,etc.On this basis,sorting out the relevant literature at home and abroad from the various aspects of executive incentive,and caring out a comprehensive review.The second part includes the third chapter of this paper,based on the analysis of principal-agent theory,executive incentive theory,interest convergence effect,opportunistic effect and effective tax planning theory,this paper puts forward the research hypothesis based on the relationship between variables in this paper.The third part includes the fourth chapter and the fifth chapter,this part is the main content of this article.First,this paper defines the degree of tax planning in the model and other variables of the measurement methods.Then it establishes the measurement model.Finally,through the observation samples,the multiple linear regression is carried out to verify the influence of the various dimensions of the executive incentive on the degree of taxplanning.The fourth part includes the sixth chapter of this article.Based on the previous empirical test,the conclusion of this paper is put forward,and then put forward the relevant policy recommendations.Finally,the deficiencies of this paper and future research directions are pointed out.