Research On The Relationship Between Donation,Corporate Reputation And Tax Avoidance

Recently,as the concept of "the third distribution" has been mentioned again.Public donation in China has been developing continuously against the background of technological development.Public donation is generally regarded as a commitment to social responsibility,but with the deepening of research,people gradually notice the self-interest motive of public donation.Tax avoidance refers to the behavior of enterprises using tax incentives and other means to reduce tax under the self-interest motive.This paper will discuss the relationship between donation and tax av oidance,and the mechanism of action from both theoretical and empirical perspectives.In this paper,from two angles to carry out the theoretical and empirical analysis.Theoretically,stakeholder theory helps to explain the motivation of enterprises to c arry out public welfare donations.Combined with social responsibility pyramid theory,it is possible for enterprises to make public welfare donations through "self-determination" to fulfill their social responsibilities to external stakeholders.According to the social exchange theory,enterprises will evaluate the benefits and costs brought by this social communication behavior when they make donations.In terms of benefits,according to the signal transmission theory,public donations can send a signal that an enterprise is in good business condition and willing to fulfill its social responsibilities.At the same time,it may also be an attempt to seek rent from the government.In terms of costs,donations themselves will bring some costs.In the process of giving,it can improve the reputation of the enterprise,which has two possible influences on tax avoidance.On the one hand,a good reputation is likely to bring more consumers and partners,improve performance,then reduce the tax incentives.On the other hand,a good reputation may also be a chance for enterprises to establish political connections.Therefore,rent-seeking phenomenon occurs and reputation masks tax avoidance.In order to verify the above theory through empirical analysis,this paper selects A-share listed companies from 2009 to 2019 as a sample,and selects variables such as corporate charitable donations/operating income,corporate reputation,and accountingtax differences to establish an intermediary effect model to explore the me chanism of charitable donations-corporate reputation-tax avoidance,testing and analysis of hypotheses.Based on the empirical results,this paper draws the following conclusions :(1)corporate donations are negatively correlated with tax avoidance,an d the more donations,the lower the degree of tax avoidance.(2)Public donations improve corporate reputation,which,to some extent,inhibits the decline of tax avoidance and forms a camouflage effect on tax avoidance.(3)Different internal and external characteristics of enterprise influence the relationship of public donations-corporate reputation-tax avoidance differently.This rule is more applicable to private enterprises,small-scale enterprises,non-polluting enterprises,enterprises in which the chairman and the manager are not concurrently held and enterprises in low marketization environment.Finally,based on the above research conclusions,the following suggestions are put forward: First,from the perspective of government-market relations,the relationship between government and enterprise should be standardized,the degree of marketization should be improved,and the hiding effect of corporate reputation on tax avoidance should be reduced.Second,improve the tax policy on public dona tions,appropriately increase the level of preferential policies for non-monetary donations,etc.Third,improve the collection and management system,optimize the dynamic credit mechanism,and form cooperation with commercial credit.Targeted management should be carried out for different groups,such as paying attention to the political connection of private enterprises,strengthening the inspection of small-scale enterprises,cooperate with the use of big data and other technologies.