Will the Audit Committee Affects Tax Aggressiveness

In recent years, a growing number of researches discuss tax aggressiveness based on corporate governance, the board of directors is the core institution of corporate governance. And the audit committee as an important part of the board of directors is responsible for supervising firm’s internal control, so, whether the audit committee affects a firm’s tax aggressiveness or not is an important issue. Our study is based on the 2009–2016 data of China’s a-share listed firms for empirical study and find that: the firm who set up the audit committee, is less likely to be tax aggressiveness. The audit committee has a negative impact on tax aggressiveness, and the negative effect is mainly derived from two internal characteristics of the audit committee: the independence and the scale, the independence is higher or the scale is larger, the negative impact is more significant. However, although the expertise of the audit committee has a negative effect on tax aggressiveness, it is not significant. So the audit committee should improve its expertise ability.