Tax avoidance, strategic activism and enterprise risk

Abstract

The paper uses China's A-share listed companies from 2011 to 2020 as a research sample to explore the relationship between strategic radicality and enterprise risk. It is found that strategic radicality is significantly positively correlated with enterprise risk. The more radical the strategy is, the greater the enterprise risk is. Tax avoidance has a negative regulated effect on strategic radicality and enterprise risk due to its effect of alleviating financing constraints. The research results of this paper have strong enlightenment for government regulators and enterprise management.