Environmental regulation and corporate tax avoidance: A quasi-natural experiment based on the eleventh Five-Year Plan in China

2021 ◽  
pp. 105312
Author(s):  
Yong Geng ◽  
Wei Liu ◽  
Kai Li ◽  
Hanshu Chen
Keyword(s):  
Environmental Regulation ◽  
Natural Experiment ◽  
Tax Avoidance ◽  
Corporate Tax

scholarly journals Does the Carbon Emissions Trading Policy Increase Corporate Tax Avoidance? Evidence from China

2022 ◽  
Vol 9 ◽  
Author(s):  
Chen Feng ◽  
Xingshu Zhu ◽  
Yu Gu ◽  
Yuecheng Liu
Keyword(s):  
Environmental Regulation ◽  
Carbon Emissions ◽  
Emissions Trading ◽  
Natural Experiment ◽  
Tax Avoidance ◽  
Financing Constraints ◽  
Corporate Tax ◽  
Government Subsidies ◽  
Carbon Emissions Trading ◽  
A Company

Based on the natural experiment of carbon emissions trading pilots in China, this paper investigates the effect of environmental regulation on corporate tax avoidance. The results show that: 1) Market-incentivized environmental regulation significantly increase the level of corporate tax avoidance. 2) Heterogeneity analysis shows that the effect is more obvious on the non-state-owned firms, firms with severe financing constraints, and firms in highly competitive industries. 3) We find that the reduction of cash flow is the channel for environmental regulation to affect corporate tax avoidance. 4) Further analysis shows that government subsidies can alleviate the enhancement of tax avoidance by environmental regulation. The more government subsidies a company receives, the less tax avoidance it has.

scholarly journals Environmental regulation and corporate tax avoidance—Evidence from China

PLoS ONE ◽  
2022 ◽  
Vol 17 (1) ◽  
pp. e0261037
Author(s):  
Xiaokang Yang ◽  
Junbing Xu ◽  
Minling Zhu ◽  
Yinglong Yang
Keyword(s):  
Environmental Regulation ◽  
Tax Evasion ◽  
Emissions Trading ◽  
Tax Avoidance ◽  
Cash Flows ◽  
Difference In Difference ◽  
Corporate Tax ◽  
Carbon Emissions Trading ◽  
Industry Competition ◽  
High Degree

In this study, we used a difference-in-difference (DID) approach to analyze the effect of environmental regulation on corporate tax avoidance behavior based on China’s carbon emissions trading pilot policy of 2013. Our findings were as follows: (1) Environmental regulation has led companies to adopt further tax evasion behaviors. Furthermore, the core conclusion was confirmed after a series of robust and endogenous tests, such as parallel trends and PSM-DID (propensity score matching-difference-in-difference). (2) Environmental regulations increase tax avoidance activities by reducing corporate cash flows. (3) The influence of environmental regulation on firm tax evasion is highly pronounced among non-state-owned enterprises, big-scale enterprises, and enterprises with a high degree of industry competition.

Does Inside Debt Moderate Corporate Tax Avoidance?

2014 ◽  
Author(s):  
Thomas R. Kubick ◽  
G. Brandon Lockhart ◽  
John R. Robinson
Keyword(s):  
Tax Avoidance ◽  
Corporate Tax ◽  
Inside Debt

Does Firm Life Cycle Explain the Propensity for Firms to Engage in Corporate Tax Avoidance?

2014 ◽  
Author(s):  
Ahmed K. Alhadi ◽  
Grantley Taylor ◽  
Grant A. Richardson
Keyword(s):  
Life Cycle ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Firm Life Cycle
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