Technological innovation as a moderating role in the relationship between managerial incentives and tax avoidance in IT and software industry of China

摘要

This study identified the innovation as moderating effect on the relationship between managerial incentives and tax avoidance. IT and software industry has been selected for this investigation. The random effect model is used for the time period of 2007-2015. The findings revealed that managerial equity incentives have a positive effect on tax avoidance in IT and software industry of China. The findings support the innovation has moderating effect in the association between managerial incentives and tax avoidance. Innovative firms pay more managerial incentives for tax avoidance.