The Impacts Of Managerial Power On Tax Planning

Under the modern enterprise system where the two rights are separated,the direction of enterprise management is often dominated by the manager.Therefore,the decision of the company's production and operation activities will inevitably be affected by the characteristics of the manager himself.As the subject of the agent comprehensive reflection,managerial power is likely to have an impact on corporate tax planning.As an important external governance mechanism of enterprises,product market competition can play a certain role in restraining managerial irrational behavior,and regulate the opportunist behaviors caused by excessive power in the tax planning process.Based on the data of China's A share listed companies in the past 2008-2016 years,this paper explores the impact of managerial power on corporate tax planning.At the same time,it also discusses whether product market competition has moderating effect on the relationship between managerial power and corporate tax planning.Firstly,we use multiple regression method to empirically test the influence of managerial comprehensive power and different power dimensions on enterprise tax planning.Then,according to the HHI index of the industry in which the sample enterprises are located,the research samples are divided into high-competition sub-samples and low-competition sub-samples,and the two sub-samples are analyzed by regression.The results show that the impacts of the managerial comprehensive power and different power dimensions on enterprise tax planning in different market competition environments are different.The empirical results show that:(1)The managerial comprehensive power has a significant positive impact on tax planning,which indicates that the stronger the power of management,the more likely the enterprise will implement positive tax planning behavior.(2)The higher the proportion of shareholding,the more likely the management to implement positive tax planning behavior;the longer the term of management,the higher the degree of tax planning of enterprises.(3)As the degree of competition in the product market increases,the positive relationship between managerial comprehensive power and tax planning weakens.In industries where product market competition is weak,tax planning is greatly affected by managerial comprehensive power.In industries where the product market is highly competitive,managerial comprehensive power has no significant effect on tax planning.(4)Product market competition will strengthen the relationship between tax planning and managerial ownership,but weaken the relationship between tax planning and managerial tenure.The study of this article expands the literature research on product market competition,managerial power and tax planning mutual influence,and it has certain reference significance for the company how to improve the governance level and how government departments formulate tax policies.