This paper investigates the influence of effective tax payment on the CEO promotion in local State Owned Enterprise (SOE) in China. Based on the analysis of listed local SOEs in China from 2004 to 2010, this paper tests the relationship between CEO promotion and tax payment. In addition, the moderating effect of pyramid layer is tested. This paper finds that there is a significant positive relationship between Effective Tax Rate (ETR) and CEO promotion, which suggests that CEOs may be aggressive in tax payment to please the local governments, who ultimately own the local SOEs. The current paper also finds that the relationship between ETR and CEO promotion is weakened as pyramid layers increase. Our conclusions enrich the literature on CEO turnover and the role of pyramid structure. The conclusions are also helpful for the SOEs’ reform in China and other developing countries. First, this paper is among the first to investigate the relationship between ETR and CEO turnover. Second, this paper highlights the function of pyramid structure in mitigating government intervention. Third, this paper also adds to the research on effective tax.

When the risk of the enterprises accumulates to a certain level, it would worsen into crisis. Therefore, how to combine the financial early warning means with the crisis prediction and risk prevention still need to research in greater depth. Real estate industry can affect its upstream and downstream firms, such as financial institutions, developers, building materials industry and etc. As a result, after compared and reviewed the domestic and foreign study of financial early warning theory, this paper chose Z-score model and real estate industry as the subject from 2008 to 2012. We focus on the reason why Z-score model cannot apply well in Chinese real estate industry and put forward some suggestions about how to modify the model and clarified the orientation of further study.