Research On Tax Avoidance,Equity Agency Costs And R&D Investment

International competition is fierce,which has brought greater competition and challenges to many enterprises.Nowadays,the competition of many enterprises depends on science and technology.Only by making breakthroughs in innovation can companies have their own core competitiveness.For the country,innovation is also very important.The country's innovation depends not only on the talents of the national scientific research institutions,but also on the enterprises.Innovation is closely related to investment in research and development of innovative projects.Adequate cash flow is critical to a company's R&D investment.A company's tax burden is an important part of the company's internal cash flow outflow.In China,due to the shortcomings of the system in the emerging transition period and the inefficient implementation of policies,Chinese enterprises have tax avoidance activities.Tax avoidance activities taken by enterprises have reduced the actual income tax rate and reduced cash outflows.Does corporate tax avoidance increase R&D investment?Enterprise management is both an executor of tax avoidance activities and a decision maker of R&D investment.Does the first type of equity agency cost play a mediating effect?Does tax avoidance increase the efficiency of R&D investment?Based on this,this paper studies the relationship and formation mechanism between corporate tax avoidance and R&D investment This paper also studies the impact of corporate tax avoidance on R&D investment efficiency.Based on the theoretical analysis,this paper selects the data of A-share listed companies from 2011 to 2018.This paper uses multiple regression and a heterogeneous random frontier model.Based on the framework of principal-agent,this paper explores whether first type of equity agency costs is an intermediary effect between corporate tax avoidance and R&D investment.This paper also explains the impact and mechanism of corporate tax avoidance on R&D investment.At the same time,considering the regulatory effect of cash holdings on corporate tax avoidance and R&D investment,a heterogeneous stochastic frontier model is used to test the impact of corporate tax avoidance on R&D investment efficiency.This research finds that(1)Corporate tax avoidance is significantly positively related to R&D investment,and the first type of equity agency cost has a partial intermediary effect between corporate tax avoidance and R&D investment;(2)Cash holdings have a negative relationship between corporate tax avoidance and R&D investment;(3)The tax avoidance of enterprises improves the efficiency of enterprise R&D investment.This paper validates the robustness by replacing the tax avoidance measures,fixed effects test and sobel test.Finally,according to the conclusions of this paper,this paper puts forward some suggestions.