报告名称：The Effect of Business Group Affiliation and External Monitoring on Profit-Tax Relation: China Evidence
报 告 人：林振聘 （Professor of Accounting, University of Lingnan）
Based on a sample of firm-years from 2005 to 2013, we find that the intrinsic positive relation between income tax expense and pretax book income is weaker for listed firms affiliated to a top 500 business group than for independent firms in China. However, the adverse effect of group affiliation on this relation is diminished following the passage of the 2008 income tax law that exogenously increases tax collection efforts and in the wake of higher tax audit rates, analyst scrutiny, and institutional shareholdings with a long-term investment horizon. Our results suggest that effective external monitoring can mitigate agency problems and opportunistic managerial behavior.