Research On The Impact Of Enterprise Risk-taking On Tax Avoidance

Most enterprises will carry out legal tax avoidance activities through tax planning in their daily business activities,while a small number of enterprises will carry out illegal tax avoidance activities.For all enterprises,risk-taking is the risk cost that enterprises take the initiative to pay in pursuit of high profits.Risk-taking and tax avoidance are inevitable for an enterprise.Based on the existing literature,this paper takes Shanghai and Shenzhen A-share listed companies in China from 2010 to 2017 as samples,studies the relationship between risk-taking and tax avoidance,and further analyses the moderating effect of external financing dependence on risk-taking and tax avoidance,as well as the greater value of tax avoidance to enterprises under the effect of risk-taking.At the same time,this paper further analyses the heterogeneity of the above two mechanisms from the perspective of the nature of corporate equity,the region where the enterprise is located and the development opportunities of the enterprise.Through empirical analysis,it is found that the risk-taking brought by venture capital will bring greater financial pressure to enterprises.Therefore,when the level of risk-taking is higher,the motivation of tax avoidance is stronger,but when the external financing dependence is better,it will alleviate the impact of enterprise risk-taking on the degree of tax avoidance.After controlling the endogeneity of the model and testing the robustness of the model,the two effects of enterprise risk-taking and tax avoidance are still significant.Under the heterogeneity analysis,the empirical analysis shows that because private enterprises are less disturbed and supervised by the government and have more investment opportunities for enterprises with higher development opportunities,the positive impact of corporate risk-taking on tax avoidance and the moderating effect of external financing dependence are significant in private enterprises and enterprises with higher development opportunities,while the eastern region is unique in that respect.In terms of location,economic development is more developed and there are more ways to obtain funds.Enterprise risk-taking has a significant positive impact on tax avoidance,but there is no moderating effect of external financing dependence.Finally,according to the conclusions of empirical analysis,this paper puts forward relevant suggestions from three perspectives of government,enterprise and external audit.