Economic Policy Uncertainty, Financing Constraints And Corporate Tax Avoidanc

The impact of economic policy uncertainty on corporate business behavior has long been the object of academic research,which may affect the internal asset allocation of enterprises to a certain extent,and then affect the degree of tax avoidance of enterprises.Since 2020,the degree of uncertainty of China’s economic policy has continued to rise,and through a comprehensive analysis of the international and domestic economic situation,this paper believes that the uncertainty of China’s economic policy will still show an upward trend in the future,so it is necessary to study the possible impact of the rise of economic policy uncertainty.Based on the above,this paper plans to study whether economic policy uncertainty will have a positive impact on corporate tax avoidance choices.If so,what are the mechanisms?Firstly,this paper introduces the research background and research significance,sorts out the domestic and foreign literature related to economic policy uncertainty,financing constraints,and corporate tax avoidance,and introduces the main content,overall framework,research methods,innovation points and shortcomings of this paper.Secondly,this paper measures the uncertainty index of China’s economic policy,and analyzes the current situation and performance of China’s economic policy uncertainty and corporate tax avoidance;Thirdly,the mechanism of economic policy uncertainty on corporate tax avoidance and the transmission mechanism of economic policy uncertainty,financing constraint and corporate tax avoidance are analyzed,and based on theoretical analysis,the research hypothesis of this paper is put forward.Then,select appropriate samples and construct an empirical model for analysis and verification.Finally,based on the empirical results,the research results are proposed,and corresponding policy recommendations are put forward for the two levels of government and enterprises.This paper selects the annual data of listed companies on the A-share main board of China from 2007 to 2020 to construct a fixed-effect model,in which this paper does not consider adding time effects to the model in view of the temporal variable of economic policy uncertainty,and only selects enterprises as individual effects.The empirical research idea is to first explore the relationship between economic policy uncertainty and corporate tax avoidance.Secondly,explore whether financing constraints play a role in transmission between the two.Thirdly,the heterogeneity test of the nature of property rights,the scale of enterprises and the industry in which the enterprises are located finds that the impact of enterprises under different categories is slightly different.Finally,the robustness test shows that economic policy uncertainty is significantly positively correlated with corporate tax avoidance,which is still valid.Through the study,the following conclusions are obtained:(1)economic policy uncertainty has a positive promoting effect on corporate tax avoidance,and the higher the degree of economic policy uncertainty,the more intense the tax avoidance behavior in the process of enterprise operation;(2)When economic policy uncertainty occurs,it will have a significant impact on corporate financing constraints,and the greater the degree of corporate financing constraints,the higher the degree of tax avoidance in operation.This paper analyzes and studies the relationship between economic policy uncertainty and the degree of corporate tax avoidance and related impact mechanisms.At the same time,after analyzing the reasons and verifying the hypotheses,this article proposes suggestions based on relevant conclusions,and further expands the theoretical and practical research of tax compliance.