Venture Capital, Financial Constraints and Corporate Tax Avoidance

Venture capital is generally believed to ease financial constraints, and it can also monitor and restrict corporate tax avoidance behaviors within a company. This article applies Chinese listed companies from 2010 to 2017 as a sample and uses the OLS regression and mediation analysis model to examine the financial constraints and tax avoidance of companies with venture capital backgrounds. The study finds that venture capital can significantly ease corporate financial constraints, and financial constraints have a mediation effect in the mechanism by which venture capital restricts corporate tax avoidance. Further analysis shows industrial heterogeneity and property heterogeneity in the impact of venture capital on corporate tax avoidance. After replacing the main variables for regression, this paper finds that the main conclusions are still robust. The paper analyzes the impact of venture capital on corporate tax avoidance behavior from the perspective of financing constraints, enriches the relevant literature in the field of corporate tax avoidance, and can provide a reference for tax collection and management decisions