Author(s)

Xinyue Wang

Corresponding Author

Xinyue Wang

Abstract

In order to explore the influence of different background characteristics of corporate executives on corporate tax avoidance, the correlation between executive characteristics and tax avoidance behavior is analyzed through theoretical research and empirical analysis. On the basis of understanding executive theory, executive echelon theory and effective rational hypothesis theory, the influence mechanism of executive characteristics on corporate tax avoidance is discussed in this research by establishing a regression model of tax avoidance degree and conducting empirical statistical analysis. Under the analysis of five personal characteristics of senior executives such as age, gender, educational background, length of tenure, financial background, as well as corporate financial data such as effective tax rate, tax avoidance degree, company size and accounting period expenses, the correlation between different characteristics of corporate executives represented by chairman and general manager and tax avoidance behaviors is obtained. The results show that executive characteristics can affect the decision-making choice of corporate tax avoidance. Age and length of employment are negatively correlated with the degree of corporate tax avoidance, financial background is positively correlated with it, and men are more likely to make tax avoidance decisions than women. Therefore, executive characteristics are correlated with the internal influence mechanism of corporate tax avoidance.

Keywords

Characteristics of senior executives; Corporate tax avoidance; Individual effects; Bounded rationality