Research On The Impact Of Audit Committee On Corporate Tax Risk

A perfect corporate governance system is of vital importance to the healthy development of the capital market.As an important part of the corporate governance structure,the audit committee's functions have been paid close attention to the role of corporate governance.Corporate tax risk is one of the most prominent risks with serious consequences,which is one of the key concerns of corporate governance.Then,does the basic function of the audit committee—the ability to communicate have an impact on a company's tax risk? How is it affected? This article takes this as a starting point.Through combing the literature,it is found that most domestic and foreign scholars have shown that the quality of corporate governance will be affected by the audit committee of the board of directors,and most of them start from the overall governance or test internal control on corporate governance.Influences.However,for the refined objects,the empirical research that directly studies the tax risk and the communication ability of the audit committee is slightly insufficient.And in China,due to factors such as system and policy,large shareholder intervention,management control and other factors,the communication function of the audit committee is affected to a certain extent.This article uses the A-share data of listed companies in 2010-2017 as a sample to empirically explore the impact of the audit committee's communication ability on corporate tax risks and the moderating role of the CEO's power on the relationship between the two.In terms of the communication ability of the audit committee,the four dimensions of the audit committee's communication ability characteristics were selected,namely the members' knowledge differences,gender differences,cultural differences and the committee's communication medium,and the actual tax method was used to measure the corporate tax.Risk level,establish four multiple linear regression models for empirical research and testing.Empirical research shows that:(1)The proportion of professional and technical personnel of audit committee members is significantly negatively correlated with the level of corporate tax risk.The more professional and technical the company's audit committee members,the better the communication function of the audit committee and the reduction of information asymmetry.The efficiency of information circulation is higher to ensure the lower tax risk of the enterprise;(2)The proportion of female members of the audit committee is significantly negatively related to the tax risk level of the enterprise.When the proportion of female personnel of the audit committee is higher,the audit committee The communication efficiency is higher,and women are more cautious in dealing with risks,so as to ensure the lower tax risk of the enterprise;(3)The proportion of foreign personnel in the audit committee does not have a significant correlation with the tax risk level of the enterprise;(4)The communication of the audit committee The type of media is significantly negatively related to the tax risk level of the enterprise.The more communication media,the higher the cost of communication,which reduces the communication efficiency of the audit committee and the utilization of information,thereby increasing the tax risk of the company.(5)The influence of CEO power on the knowledge differences and tax risks,gender differences and tax risks of members of the audit committee is a positive adjustment effect.The higher proportion of professional and technical personnel in the audit committee has a role in reducing corporate tax risks.With the increase of power,the role of reduction is also enhanced.At the same time,the increase in the proportion of female personnel in the audit committee has a role in reducing corporate tax risk,and it is also strengthened as the CEO's power increases.(6)CEO power negatively regulates the relationship between the audit committee communication media and corporate tax risk that is,the more communication media in the audit committee,the higher the corporate tax risk,but as the CEO power increases,the audit committee communication media.The increase in tax risk is decreasing.Through empirical testing,this paper analyzes the relationship between the audit committee's communication ability and corporate tax risk and explores the direction of its impact.It attempts to verify the basic function of the audit committee—the impact of communication ability on corporate tax risk.This article jumps out of the previous research model of corporate governance and corporate tax risk,and refines the objects that affect corporate tax risk in corporate governance,and provides empirical evidence for the assumption that the communication function of the audit committee can promote the reduction of corporate tax risk.The evidence provides new ideas for the staffing and structure setting of the audit committee,and proposes relevant suggestions for improving the audit committee's recommendations,enhances the audit committee's communication function,and also provides policy systems for the government's macro management of tax risks.New angle.