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Title: |
The Motivation for Tax Avoidance in Earnings Management |
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Source: |
International Conference on Engineering and Business Management 2012(Part 1 Enterprise Operation and Management（1）)
(pp 447-450)
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Author(s): |
Shiwei Wang, School of Business, Renmin University, China, 100872
Siyu Chen, School of Business, Renmin University, China, 100872 |
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Abstract: |
Among listed companies, earnings management and tax avoidance are both specific operations for enterprise interest, following the same development strategy planning. Examining data from Chinese A share listed companies during 2004-2006, we find a significant positive correlation between earnings management and tax avoidance and the long-term business performance weakens this positive correlation. In particular, for state-backed companies, their business performance has little influence on the motivation of earnings management. This paper aims to provide advises to interest groups like regulatory authorities, investors and executives.
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