Research On The Influence Of Negative Media Reports And Executive Salary On Corporate Tax Avoidance

Tax costs can significantly affect the cost and daily cash flow of a company.Nowadays,more and more companies are seeking tax planning to avoid part of the tax in order to improve the profitability and corporate value of the company.Therefore,the academic community has discussed the related topics of corporate tax avoidance.Never stop,there are more and more articles studying corporate tax avoidance from the perspective of principal-agent,and salary incentives are also an important way to alleviate principal-agent problems.Nowadays,the rapid development of new media has gradually become the main way for the public,especially investors,to obtain internal corporate information.Media reports can quickly cause public opinion effects and affect corporate behavior.The academic community has proven that internal management of companies is to a considerable extent Affected by external media reports,and the media's negative reports have a stronger public opinion,the perspective effect on the company is more significant.On the other hand,whether corporate tax avoidance is affected by the interaction of external media supervision and internal executive compensation incentives remains to be studied.Based on the principal-agent theory and reputation theory,this article studies the impact of negative media reports,executive compensation,and corporate tax avoidance on China's A-share listed companies from 2010 to 2019.From the perspective of external media supervision and the perspective of internal compensation incentives,respectively,the mechanism of its influence on corporate tax avoidance is discussed,which enriches the current research content.In the article,three hypotheses about the negative media reports,the impact of executive compensation on corporate tax avoidance,and the regulatory relationship of executive compensation on negative media reports and corporate tax avoidance are put forward.Competitive hypotheses are proposed for the regulatory relationship,and conclusions are drawn through empirical research.The empirical results found that negative media reports can effectively inhibit corporate tax avoidance;executive compensation can inhibit corporate tax avoidance;companies with higher executive compensation can weaken the inhibitory effect of negative media reports on tax avoidance,that is,executive compensation and negative media reports have a negative effect on tax avoidance.The suppression of tax avoidance has a substitution effect.In addition,three robustness test methods are used to prove that the conclusion is robust.Based on the empirical analysis of the factors affecting corporate tax avoidance,it is concluded that government agencies' supervision of the news media industry should be improved,the information disclosure obligations of listed companies in the news media industry should be strengthened,and internal and external regulatory measures should be comprehensively used to complete the corporate governance system.Improve and other policy recommendations.