The
behavior theory of firm hypothesizes that firms with their performance below their
expectations will improve the probability of deviant behavior such as fraud and
bribery,but less attention is paid to evading social
security contributions. This paper argues that firm swith small performance
shortfall prefer to evade social security contributions while firms with big
performance shortfall prefer high-risk deviant behavior,and firms with
performance surplus pay no attention to the social security contribution. Taking
A-share listed companies from 2007 to 2018 as samples,this paper examines
the impact of performance shortfall on firms social security contributions. The
results show that when performance is lower than expected,performance shortfall
is positively correlated with social security contributions, market valuation and
industry competition strengthen this relationship;when performance is higher than expected,and performance
surplus has nothing to do with social security contributions.