Tax Compliance and Corporate Performance Under the Difference of Corporate Governance Mechanism

YU Ke; LI Lin-mu

Volume 37 Issue 6

Nov. 2022

Turn off MathJax

Article Contents

Article Navigation > Journal of Guangdong University of Finance & Economics > 2022 > 37(6): 104-113

YU Ke, LI Lin-mu. Tax Compliance and Corporate Performance Under the Difference of Corporate Governance Mechanism[J]. Journal of Guangdong University of Finance & Economics, 2022, 37(6): 104-113.

Citation:

YU Ke, LI Lin-mu. Tax Compliance and Corporate Performance Under the Difference of Corporate Governance Mechanism[J]. Journal of Guangdong University of Finance & Economics, 2022, 37(6): 104-113.

YU Ke, LI Lin-mu. Tax Compliance and Corporate Performance Under the Difference of Corporate Governance Mechanism[J]. Journal of Guangdong University of Finance & Economics, 2022, 37(6): 104-113.

Citation:

YU Ke, LI Lin-mu. Tax Compliance and Corporate Performance Under the Difference of Corporate Governance Mechanism[J]. Journal of Guangdong University of Finance & Economics, 2022, 37(6): 104-113.

PDF( 1025 KB)

Tax Compliance and Corporate Performance Under the Difference of Corporate Governance Mechanism

YU Ke,
LI Lin-mu

School of Public Finance and Taxation, Guangdong University of Finance and Economics, Guangzhou 510320, China

Received Date: 2021-12-01
Available Online: 2023-01-13
Publish Date: 2022-11-28

Abstract

Abstract

It is the major goal of modern corporate governance to realize the synergistic improvement of both tax compliance and corporate performance. This paper examines the relationship between tax compliance and corporate performance under the differences of corporate governance mechanisms from three levels i.e. the board of directors, shareholders and senior executives. It is found that whether the relationship between tax compliance and corporate performance is synergistic or confrontational depends on different corporate governance mechanisms. First, at the level of the board of directors, the increase of the proportion of independent directors is conducive to promoting enterprises, especially those with originally low tax payment credit rating, to realize the coordinated improvement of tax compliance and corporate performance; however, the integration of the chair of the board and the general manager has no obvious impact on the change of their relationship. Second, at the level of the shareholder, with the increase of equity concentration, the risk of conflict between tax compliance and enterprise performance increases, but not significantly. Third, at the level of the executive, the higher the shareholding ratio of senior executives, the more likely enterprises, especially those with low tax payment credit rating, are to improve their performance by reducing tax compliance. Based on the empirical results, in order to achieve the coordinated improvement of both tax compliance and enterprise performance, and to ensure the win-win situation between the government and enterprises, it is necessary to optimize the corporate governance mechanism, especially to increase the proportion of independent directors, and strengthen tax supervision over enterprises with high proportions of executive shareholding.
- tax compliance,
- corporate performance,
- corporate governance,
- tax credit rating,
- executive shareholding,
- synergistic improvement

FullText(HTML)

References(31)

References

[1]	李林木, 于海峰, 汪冲, 等. 赏罚机制、税收遵从与企业绩效——基于纳税信用管理制度的研究[J]. 经济研究, 2020(6): 89-104. https://www.cnki.com.cn/Article/CJFDTOTAL-JJYJ202006008.htm
[2]	FAMA E F, JENSEN M C. Separation of ownership and control[J]. Journal of Law and Economics, 1983, 26: 301-325. doi: 10.1086/467037
[3]	KOVERMANN J, VELTE P. The impact of corporate governance on corporate tax avoidance—a literature review[J]. Journal of International Accounting, Auditing and Taxation, 2019, 36: 1-29.
[4]	FAMA E F. Agency problems and the theory of the firm[J]. Journal of Political Economy, 1980, 88: 288-307. doi: 10.1086/260866
[5]	LANIS R, RICHARDSON G. Outside directors, corporate social responsibility performance, and corporate tax aggressiveness: an empirical analysis[J]. Journal of Accounting, Auditing and Finance, 2018, 33: 228-251. doi: 10.1177/0148558X16654834
[6]	RICHARDSON G, LANIS R, TAYLOR G. Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: an empirical analysis[J]. Journal of Banking and Finance, 2015, 52: 112-129. doi: 10.1016/j.jbankfin.2014.11.013
[7]	ARMSTRONG C S, BLOUIN J L, JAGOLINZER A D, et al. Corporate governance, incentives, and tax avoidance[J]. Journal of Accounting and Economics, 2015, 60: 1-17.
[8]	DONALDSON L, DAVIS J H. Boards and company performance: research challenges the conventional wisdom[J]. Corporate Governance: An International Review, 1994, 2: 151-160. doi: 10.1111/j.1467-8683.1994.tb00071.x
[9]	高明华, 马守莉. 独立董事制度与公司绩效关系的实证分析——兼论中国独立董事有效行权的制度环境[J]. 南开经济研究, 2002(2): 64-68. doi: 10.3969/j.issn.1001-4691.2002.02.012
[10]	曲亮, 章静, 郝云宏. 独立董事如何提升企业绩效——立足四层委托—代理嵌入模型的机理解读[J]. 中国工业经济, 2014(7): 109-121. doi: 10.19581/j.cnki.ciejournal.2014.07.010
[11]	DANG R, HOUANTI L, NHU T L, et al. Does corporate governance influence firm performance? quantile regression evidence from a transactional economy[J]. Applied Economics Letters, 2018, 25(14): 984-988. doi: 10.1080/13504851.2017.1390309
[12]	魏刚, 肖泽忠, NICK TRAVLOS, 等. 独立董事背景与公司经营绩效[J]. 经济研究, 2007(3): 92-105, 156. https://www.cnki.com.cn/Article/CJFDTOTAL-JJYJ200703008.htm
[13]	TANG X, DU J, HOU Q. The effectiveness of the mandatory disclosure of independent directors' opinions: empirical evidence from China[J]. Journal of Accounting & Public Policy, 2013, 32(3): 89-125.
[14]	MA J, KHANNA T. Independent directors' dissent on boards: evidence from listed companies in China[J]. Strategic Management Journal, 2013, 37(8): 1547-1557.
[15]	CHAN K H, LIN K Z, TANG F. Tax effects of book-tax conformity, financial reporting incentives, and firm size[J]. Journal of International Accounting Research, 2013, 12(2): 1-25. doi: 10.2308/jiar-50404
[16]	唐伟, 李晓琼. 抑制还是促进——民营企业的社会责任表现与税收规避关系研究[J]. 科学决策, 2015(10): 51-65. https://www.cnki.com.cn/Article/CJFDTOTAL-KXJC201510005.htm
[17]	吴淑琨, 柏杰, 席酉民. 董事长与总经理两职的分离与合一——中国上市公司实证分析[J]. 经济研究, 1998(8): 21-28. https://www.cnki.com.cn/Article/CJFDTOTAL-JJYJ808.002.htm
[18]	KLEIN A. Audit committee, board of director characteristics and earnings management[J]. Journal of Accounting Economics, 2002, 33: 375-400. doi: 10.1016/S0165-4101(02)00059-9
[19]	YANG T, ZHAO S. CEO duality and firm performance: evidence from an exogenous shock to the competitive environment[J]. Social Science Electronic Publishing, 2014, 49: 534-552.
[20]	RICHARDSON G, WANG B, ZHANG X. Ownership structure and corporate tax avoidance: evidence from publicly listed private firms in China[J]. Journal of Contemporary Accounting and Economics, 2016, 12: 141-158.
[21]	王玉霞, 王浩然, 张容芳. 上市公司薪酬差距对公司绩效的影响——基于股权集中度的中介效应[J]. 经济问题, 2021(3): 108-115. https://www.cnki.com.cn/Article/CJFDTOTAL-JJWT202103016.htm
[22]	OMAR F. Effect of ownership concentration on capital structure: evidence from the MENA region[J]. International Journal of Islamic and Middle Eastern Finance and Management, 2015, 8(1): 99-113.
[23]	杜莹, 刘立国. 股权结构与公司治理效率: 中国上市公司的实证分析[J]. 管理世界, 2002(11): 124-133. https://www.cnki.com.cn/Article/CJFDTOTAL-GLSJ200211016.htm
[24]	KEVIN J. CEO Compensation and company performance[J]. Business and Economics Journal, 2011, 31: 1-8.
[25]	张燕红. 高管薪酬激励对企业绩效的影响[J]. 经济问题, 2016(6): 116-120. https://www.cnki.com.cn/Article/CJFDTOTAL-JJWT201606021.htm
[26]	MAIN B. Top executive pay and performance[J]. Managerial and Decision Economics, 1991, 12: 219-229.
[27]	JENSEN M C, MURPHY K J. Performancepay and top management incentive[J]. Journal of Political Economy, 1990, 98: 225-264.
[28]	KUBICK T R, MASLI ADI N S. Firm-level tournament incentives and corporate tax aggressiveness[J]. Journal of Accounting and Public Policy, 2016, 35: 66-83.
[29]	杜剑, 江美玲, 杨杨. 税收激励对企业价值的影响——基于研发绩效的中介效应[J]. 江南大学学报: 人文社会科学版, 2021(5): 58-71. https://www.cnki.com.cn/Article/CJFDTOTAL-WXQS202105006.htm
[30]	高明华. 中国上市公司薪酬指数报告[M]. 北京: 经济科学出版社, 2011.
[31]	WINTOKI M B, LINCK J S, NETTER J M. Endogeneity and the dynamics of internal corporate governance[J]. Journal of Financial Economics, 2012, 105(3): 581-606.