The Impact Of Senior Executives' Financial Background On Tax Avoidance Of Family Firms

The impact of personal characteristics of managers on corporate decisionmaking has been confirmed.It has also been confirmed that individual executives have an impact on corporate tax avoidance using the data of executive turnover.However,there are few studies about the influence of financial experts managers on corporate decision-making,and there is a lack of research on the impact of financial background on corporate tax avoidance.In recent years,there have been frequent reports on family firms,and the number of family firms databases has increased.Family businesses have attracted increasing attention year by year.Therefore,this paper selects family firms as samples to analyze the influence of the financial background on tax avoidance.This article selects the family firms from China's listed companies from 2008 to 2017 as samples.The conclusion is drawn that the financial background of managers is able to intensify the tax avoidance of family enterprises.Furthermore,the relationship between family ownership and control and tax avoidance is studied.It is proved that the higher the proportion of family ownership and control,the more the company pays attention to potential regulatory penalties,reputation costs,agency costs,etc.,so the less the financial background plays a role in promoting tax avoidance.In order to test the robustness of the conclusion,based on the different definitions of family business by different scholars,this paper changes the definition of family firms to re-screen the samples,and conducts a regression analysis with the re-screened samples which verified theory of my conclusion that financial experts manager have the ability to maintain a high level of debt which they prefer.So in order to maintain solvency,managers will take more aggressive tax avoidance.The contribution of this paper can be divided into theoretical contribution and practical contribution.The theoretical contribution lies in the innovative research on the relationship between the financial background and tax avoidance,which proves that the financial background can cause the increase of corporate tax avoidance by increasing the level of corporate debt.This paper takes family enterprises as samples for analysis,which enriches the research on tax avoidance of family enterprises,and proves that the higher the family control right and ownership is,the smaller the promoting effect of the financial background on tax avoidance of family enterprises is.Based on the above research,this paper suggests that countries and enterprises should strengthen tax education and risk management education for financial talents,and puts forward Suggestions for establishing a team of high-quality financial talents with both ability and political integrity.The research results of this paper also have reference significance for tax authorities to prevent tax avoidance of listed companies,especially for family firms.This paper also puts forward some Suggestions for listed companies to prevent tax avoidance from damaging their long-term interests.