Research on the Relationship between Executive Compensation Incentives and Corporate Tax Avoidance—Regulation Effect Test Based on Internal Control Quality

Abstract

This paper selects China’s A-share listed companies from 2016 to 2020 as the research sample. Based on agency theory and rent-seeking theory, this paper uses empirical tests to explore the impact of executive compensation incentives on corporate tax avoidance, and examines the moderating effect of internal control between them. The study found that executive compensation incentives are significantly negatively correlated with the degree of corporate tax avoidance; and when the internal control quality of the company is weaker, the negative impact of executive compensation incentives and corporate tax avoidance will be deeper.