The Impact Of Managerial Academic Experience On Corporate Tax Avoidance

During the transition period from planned economy to market economy,especially after Deng Xiaoping's southern speech in the end of last century,a large number of civil servants emerged from the administrative institutions to operating companies.Many of them went to sea to start business and this had appeared many times.Most of these entrepreneurs are those who have had academic experience in colleges and universities,scientific research institutions,etc.,which has formed a unique phenomenon of “literate people going to sea” in China's modernization process.“Sciences go to the sea” and serve as executives provide a high-quality talent support for the establishment of a modern enterprise system,and this have a substantial impact on corporate governance.As the company's management decision-makers,facing the complex and ever-changing business environment,senior management needs to comprehensively consider tax avoidance income and various costs to make tax avoidance decisions.The different preferences of senior executives will affect their assessment and tax avoidance options.Therefore,this factor of company executives deserves special attention.Managerial academic experience can enhance managerial integrity and make them more stable in decision-making.Thus managerial academic experience has an important impact on corporate tax avoidance activities.This paper examines the impact of managerial academic experience on corporate tax avoidance behavior,taking the A-share listed companies from 2009 to 2017 in Shanghai and Shenzhen Stock exchanges as research samples.The study results show that the managerial academic experience can significantly reduce the company's tax avoidance,and this reduction effect gradually increases with the increase of corporate tax avoidance.The further study on the managerial gender,property rights,managerial shareholding and government intervention show that managerial academic experience inhibits corporate tax avoidance only in high female managerial ratio,non-state-owned corporations,high managerial shareholdings and low government intervention.The results of the extended analysis show that the implementation of downward earnings management activities and mitigation of financing constraints is channel mechanism for managerial academic experience to reduce corporate tax avoidance behavior.Managerial academic experience restrains the corporate tax avoidance behavior enhance the corporate value significantly.The above evidence shows that managerial academic experience is an important incentive for companies to avoid taxation.This paperenriches the influencing factors of corporate tax avoidance and the economic consequences of managerial academic experience.There are some policy recommendations: First,the company should improve the selection criteria for executives.It is recommended that the company hire senior executives with academic experience,while paying attention to the role of female executives in improving the company's management.Second,the company should formulate measures to alleviate the principal-agent problem of senior management and external investors,improve the incentive mechanism for senior executives.Third,the government should strengthen the intervention of the company's operation and management,strengthen the supervision and punishment of illegal tax avoidance.