The Impact of Corporate Tax Avoidance on Stock Price Crash Risk

Using all the A-share listed companies in 2010-2015 as the initial observation samples, this paper studies the relationship between corporate tax avoidance and the stock price crash risk. Through empirical test, the research suggests that the higher the degree of tax avoidance, the greater the risk of stock price collapse. This finding is consistent with the theoretical analysis under the agency theory. This paper further finds out that the weaker the supervisory mechanism faced by the company, the stronger the correlation between corporate tax avoidance and the stock price crash risk. Also, the stronger the risk of the company itself, the stronger the correlation between the tax avoidance and the stock price crash risk. These research results enrich the research on the relationship between the corporate tax avoidance and the stock price crash risk in our country, also expand the content of corporate governance and stock price crash risk.