Supply Chain Concentration,Management Shareholding And Tax Avoidance

Taxation is the main source of national finance and the compulsory distribution of corporate income.Faced with higher tax burden pressure,more enterprises often take the way of tax avoidance to reduce the operating pressure and improve economic benefits.However,tax avoidance will also increase the legal risks and regulatory costs faced by enterprises,and even lead to the unequal distribution of public resources.Therefore,how to optimize the tax avoidance behavior of enterprises and ensure the stable financial revenue of the state has not only become the focus of our tax reform,but also the hot topic of academic research.The tax avoidance decisions of enterprises are not carried out in a closed and isolated environment,and it will inevitably have a certain connection or correlation with other stakeholders or governance environment.As the most important external stakeholders of an enterprise,suppliers and customers have an impact on all aspects of the enterprise.Especially under the macro background of the impact of COVID-19 and fierce market competition,the stability of the relationship between suppliers and customers has become an increasingly important heterogeneous resource for enterprises.Whether the concentration degree of supply chain will affect the tax avoidance decisions of enterprises is worth further exploration.In addition,as an internal governance mechanism,management shareholding may not only have a governance effect and inhibit the tax avoidance behavior of enterprises,but also may become a black box for the management to seize private interests and "extract rent",prompting enterprises to conduct more aggressive tax avoidance activities.It is also worth exploring whether the institutional arrangement of management shareholding will have a certain impact on the relationship between supply chain concentration and corporate tax avoidance.On the basis of collating domestic and foreign literature related to the topic selection,this paper comprehensively uses resource dependence theory,asset specificity theory,principal-agent theory,information asymmetry theory and effective tax planning theory to analyze the mechanism between supply chain concentration and corporate tax avoidance as well as the regulatory role played by management shareholding and puts forward research hypotheses.Then the data of Shanghai and Shenzhen A-share listed companies from 2010 to 2021 are used for regression analysis and empirical test.The results show that:(1)There is a significant positive correlation between supply chain concentration and corporate tax avoidance.In other words,the higher the concentration of supply chain,the stronger the tax avoidance motivation of enterprises,and the more likely to take aggressive tax avoidance activities.In the further analysis,through the mediation effect test,it is found that financing constraints and information transparency play an intermediary role between the two.The increase of supply chain concentration leads to the financial pressure and information risk of enterprises,thus promoting the more aggressive tax avoidance behavior of enterprises.(2)Management shareholding can play a moderating role,weakening the positive correlation between supply chain concentration and corporate tax avoidance.The institutional arrangement of management shareholding can play a positive role in alleviating the agency problem and urging the management to focus on operation and management,so as to reduce the aggressive tax avoidance behavior of enterprises.(3)The heterogeneity analysis based on property rights shows that,compared with state-owned enterprises,the promotion effect of supply chain concentration on corporate tax avoidance is more obvious in non-state-owned enterprises.(4)Heterogeneity analysis based on audit quality shows that,compared with enterprises with higher audit quality,the promotion effect of supply chain concentration on corporate tax avoidance is more obvious in enterprises with lower audit quality.Therefore,based on how to optimize the enterprise tax avoidance behavior,this paper puts forward three countermeasures and suggestions,including improving the supply chain management system,improving the enterprise’s internal and external governance ability and reasonable arrangement of tax planning strategies.