Organizational Capital,corporate Tax Avoidance,and Firm Value

Organizational capital includes a company’s stock of knowledge,capabilities,culture,business processes and systems,which can promote the matching of human skills and physical capital to improve organizational efficiency.As an important part of intangible capital,organizational capital enables productive interaction between various tangible and intangible resources,creates economic value,achieves excellent operation,investment and innovation performance,and is the promoter of extraordinary performance of enterprises.In China,corporate tax avoidance is widespread,which has always attracted the attention of theoretical and practical circles.Regarding corporate tax avoidance and firm value,there are two main views in academia: one is that tax avoidance can increase after-tax cash flow so that it enhances firm value;the other is that tax avoidance may bring additional risks and costs,which ultimately does not increase the value of the company,and may even reduce firm value.Domestic and abroad scholars have studied the impact of organizational capital on enterprises and the influencing factors of corporate tax avoidance to the fullest,but there is a lack of exploration of the relationship between organizational capital and tax avoidance.Therefore,this paper will explore the relationship between organizational capital and corporate tax avoidance,and explore the moderating factors affecting that relationship and the impact of organizational capital on the relationship between corporate tax avoidance and firm value,which is not only conducive for enterprises to take reasonable measures for more tax avoidance,but also provides a basis for government agencies to formulate relevant policies,and also provides a new perspective for investors to formulate investment strategies.The conclusions show that:(1)The degree of corporate tax avoidance is positively correlated with organizational capital,in other words,organizational capital promotes corporate tax avoidance.(2)Employee incentive(executive and employee pay gap)has an important moderating effect on the relationship between organizational capital and corporate tax avoidance,and the larger the executive and employee pay gap,the weaker the promotion effect of organizational capital on corporate tax avoidance.(3)Organizational capital has an incremental impact on the correlation between corporate tax avoidance and firm value,and investors believe that tax avoidance behavior of companies with high organizational capital can enhance firm value.(4)The impact of organizational capital on corporate tax avoidance is heterogeneous,which is more significant in the high financing constraint group and the high organizational capital group.The contributions of this paper are as follows:(1)It is proved that for listed companies in China,organizational capital increases corporate tax avoidance and improves the degree of tax avoidance of enterprises.(2)It is proved innovatively that employee incentive(executive and employee pay gap)has a moderating effect on the relationship between organizational capital and corporate tax avoidance,which enriches the research on the relationship between organizational capital and corporate tax avoidance.(3)Through theoretical analysis and empirical testing,it is proved that for listed companies in China,organizational capital has an incremental impact on the relationship between corporate tax avoidance and corporate value,making a marginal research contribution.