Taxation Ecological Environment, Tax Avoidance and Enterprise Value

Abstract

Taxation ecological environment, as an important external environment on which the operation of an enterprise relies, not only has a direct impact on the enterprise value, but also affects the enterprise value through its tax avoidance, forming a unique path for taxation ecological environment to affect the enterprise value. By collecting data from A-share listed companies in Shanghai and Shenzhen Stock By collecting data from A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2018, this paper tests how taxation ecological environment affects the enterprise value by using enterprise tax avoidance as mediating effect.The results show that a good taxation ecological environment helps to improve the enterprise value, and enterprises take different tax avoidances under different taxation ecological environment: a good taxation ecological environmentwill weaken the incentives for enterprises to usetax avoidance, at this time, the taxavoidanceis dominated by"the effect of alleviating financial constraints"; a poor taxation ecological environment will encourage enterprises to take radical tax avoidance, at this time, the tax avoidance will mainly play the mediating role of "increasing agency cost".