Effect Of External Monitoring Regimes And Corporate Governance On Firm's Tax Avoidance

The reform of the national tax collection and management system in 2015 aims to strengthen taxation supervision and influence tax compliance from outside the enterprise while corporate governance level,as an internal supervision mechanism,can also affect tax avoidance behavior and other aspects of business operations.Considering there is currently a lack of research on this aspect at home and abroad,this paper attempts to explore the impact of corporate governance on the relationship between tax regulation and corporate tax avoidance behavior.Secondly,this paper selects relevant statistics of the listed enterprises from 2012 to 2017 and calculates permanent book tax differences,effective tax rate and the level of corporate governance.Therefore,it is proved that the strengthened tax regulation has reduced enterprises tax avoidance,but weak corporate governance will weaken the reverse relationship.In addition,the intensity of tax supervision on tax avoidance behavior of high-tech companies is lower than that of non-high-tech companies,and tax avoidance behavior of private companies is little than that of state-owned companies.Thirdly,by using the fixed effect of DID,this paper takes tax collection and management reform in 2015 as a "quasi-natural experiment" and examines the impact of external supervision level and corporate governance structure on corporate tax avoidance.The empirical results show that the stronger the level of external supervision,the lower the degree of tax avoidance.Secondly,private enterprises are more sensitive to the reform than state-owned enterprises,while foreign enterprises are hardly affected by the tax regulatory environment;the sensitivity of tax avoidance behavior of non-high-tech enterprises is higher than that of high-tech enterprises.On this basis,this paper adds the dummy variable,corporate governance level,and finds that weak corporate governance level weakens the negative relationship between tax supervision and corporate tax avoidance level.The weakening effect of enterprises with low governance level on the negative relationship between tax supervision and tax avoidance is more obvious than those with high governance level.Finally,on the base of summing up the whole paper,this paper submits related policy proposals to improve tax compliance of enterprises.