Welcome to Francis Academic Press

Academic Journal of Business & Management, 2022, 4(19); doi: 10.25236/AJBM.2022.041910.

Endowment insurance payment burden and enterprise tax avoidance

Author(s)

Ling Cheng1

Corresponding Author:
Ling Cheng
Affiliation(s)

1Department of Accounting, Shanghai University, Shanghai, China

Abstract

Endowment insurance is the first pillar of China's current endowment system, and enterprises are the main force of endowment payment; The proportion of endowment insurance enterprises in China has always been at a high level, which has caused heavy cost burden and cash flow pressure to enterprises. This paper takes A-share listed companies as the research object, and discusses the impact of pension insurance on micro enterprise behavior from the perspective of enterprise tax avoidance behavior. The study finds that the burden of pension insurance will increase the tax avoidance of enterprises. In further analysis, it is found that the reduction of cash flow level is the mechanism of pension insurance payment burden affecting enterprise tax avoidance. In addition, when there are high financing constraints and high labor intensity, the burden of pension insurance payment has a more serious impact on enterprise tax avoidance.

Keywords

Endowment insurance payment burden; Enterprise tax avoidance; Financial pressure

Cite This Paper

Ling Cheng. Endowment insurance payment burden and enterprise tax avoidance. Academic Journal of Business & Management (2022) Vol. 4, Issue 19: 73-81. https://doi.org/10.25236/AJBM.2022.041910.

References

[1] Zhang Yingbin, Liu Zhixin, Bai Manying, Luo Qiyao. Research on the equilibrium system and optimal replacement rate of China's social basic old-age insurance -- Empirical Analysis Based on the intertemporal iteration model [J]. Financial research, 2013. (1): 79 − 91

[2] Feng Jin, Welfare economics analysis of China's pension insurance system reform [J]. Economic research, 2004. (2): 55 − 63

[3] Cheng Yonghong. Quantitative analysis of the relationship between pay as you go system and population aging [J]. Economic research, 2005. (3): 57 − 68

[4] Wu Yongqiu, Ran Guanghe. Measurement and trade-off theory of equity and efficiency of pension insurance system [J]. Mathematical statistics and management, 2014. (5): 761 − 769

[5] Lu Jinfei, Research on reasonably reducing the contribution rate of basic old-age insurance for urban workers in China -- Based on the calculation of the system support rate [J]. Journal of public administration, 2016. (1): 128 − 140

[6] Bai Chongen, Wu Binzhen, Jin Ye. The impact of China's pension insurance payment on consumption and savings [J]. Chinese Social Sciences, 2012. (8): 48 − 71

[7] Liao Pu, Will China's basic old-age insurance system improve the welfare of insured residents [J]. World economy, 2016. (11): 147 − 171

[8] Tian Ling, Liu Zhangyan. Can the basic old-age insurance effectively alleviate residents' consumption pressure perception—— Empirical evidence based on China Comprehensive Social Survey (CGSS) [J]. China soft science, 2017. (1): 31 − 40

[9] Peng Haoran, Yue Jinglun, Li CHENFENG. Is there a bottom-by-bottom competition in the collection and payment of local government pension insurance in China? [J]. Management world, 2018. (2): 103 − 111

[10] Yang Jijun, Zhang Weifu, Zhang Erzhen. The impact of pension system reform on China's economic dynamic efficiency [J]. Economic trends, 2019, 699 (5): 28-41

[11] Yu Xinliang, Zhang Wenrui, Guo Wenguang, et al. Unification of old-age insurance system and marketization of labor factors -- An Empirical Study Based on the reform of public and private pension systems [J]. China industrial economy, 2021, 394 (1): 36-55

[12] Ma Shuang, Meng xianrui, Gan Li. Analysis of the impact of pension insurance enterprise contributions on employees' wages and employment [J]. Economics (quarterly), 2014,13 (3): 969-1000

[13] Zhao Jianyu, Lu Zhengfei. Will the proportion of endowment insurance payment affect the production efficiency of enterprises? [J]. economic research, 2018,53 (10): 97-112

[14] Shen Yongjian, Liang Fangzhi, Jiang Dequan, et al. Transformation and reform of social insurance collection and Payment institutions, enterprise pension expenditure and enterprise value [J]. China industrial economy, 2020, 383 (2): 1-3, 155-173

[15] Wei Zhihua, Xia taibiao. Social insurance payment burden, financial pressure and enterprise tax avoidance [J]. China industrial economy, 2020, 388 (7): 136-154

[16] Li Jinyu, Wang Deli. Basic old-age insurance and enterprise tax avoidance [J]. Accounting and economic research, 2020, 34 (1): 74-95

[17] Luo Mingzhong, Chen Ming. Job characteristics, employee satisfaction and labor dispute settlement behavior [J]. Southern economics, 2014, 302 (11): 78-92

[18] He Wei, Hao Po. Does the difference in salary distribution necessarily reduce employees' emotional commitment -- the regulatory role of salary level, performance salary intensity and employee diversity [J]. Nankai management review, 2014,17 (4): 13-23

[19] Shen Yongjian, fan Yong, Chen Donghua, et al. Explicit contract, employee rights protection and rising labor cost: the role of labor contract law [J]. China industrial economy, 2017347 (2): 117-135

[20] Liao guanmin, Chen Yan. Labor protection, labor intensity and business flexibility: An Empirical Test Based on the labor contract law of 2008 [J]. Economic science, 2014200 (2): 91-103

[21] Liu Xing, Zhao Jianyu, Ye Kangtao. Enterprise tax avoidance, debt financing and debt financing sources -- a breakpoint regression analysis based on the reform of the income tax collection and management system [J]. Management world, 2017 (10): 113-129

[22] Graham,J.R.,andA.L.Tucker.TaxSheltersandCorporateDebtPolicy[J].JournalofFinancialEconomics,2006,81(3):563-594.

[23] Liu Xing, Zhao Xiaoyang. Will the rise of the minimum wage increase the tax avoidance of enterprises? [J].  Economic research, 2019, 54 (10): 121-135

[24] Wang Liangliang. Financial crisis impact, financing constraint and enterprise tax avoidance [J]. Nankai management review, 2016, (1): 155-168

[25] Zhang Minghong, Zhang Haifeng, Zhang Rui. The heterogeneous impact of financing constraints on corporate tax avoidance behavior -- Evidence from Listed Companies [J]. Tax research, 2018, 396 (1): 93-99

[26] Chen Zuohua, Fang Hongxing. Financing constraint, internal control and enterprise tax avoidance [J]. Management science, 2018, 31 (3): 125-139

[27] Lu Yao, Shi Xinzheng, Liu Luyao. Labor protection and earnings management: An Empirical Analysis Based on the change of the minimum wage policy [J]. Management world, 2017, 282 (3): 146-158

[28] Liao guanmin, Song Leilei. Labor protection, human capital intensity and total factor productivity [J]. Economic management, 2020, 42 (8): 17-33