Controlling Shareholders’ Incentive and Corporate Tax Avoidance: A Natural Experiment in China

2017 ◽  
Vol 44 (5-6) ◽  
pp. 697-727 ◽  
Author(s):  
Oliver Zhen Li ◽  
Hang Liu ◽  
Chenkai Ni
Keyword(s):  
Natural Experiment ◽  
Tax Avoidance ◽  
Corporate Tax ◽  
Controlling Shareholders

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

How Internal Control Protects Shareholders' Welfare: Evidence from Tax Avoidance in China

2020 ◽  
Vol 19 (2) ◽  
pp. 19-39
Author(s):  
Hsihui Chang ◽  
Xin Dai ◽  
Yurun He ◽  
Maolin Wang
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Agency Costs ◽  
Tax Avoidance ◽  
Positive Association ◽  
Data Availability ◽  
Corporate Tax ◽  
Controlling Shareholders ◽  
The Public ◽  
Prior Literature

ABSTRACT This paper investigates how effective internal control protects shareholders' welfare in the context of corporate tax avoidance. Prior literature documents a positive association between internal control weakness and low tax avoidance. In this paper, we re-examine this association and complement prior research by finding that the direction of the association between internal control and tax avoidance depends on the level of tax avoidance. Specifically, for firms with low (high) levels of tax avoidance, internal control quality is positively (negatively) associated with tax avoidance. In additional analyses, we further explore how internal control mitigates agency costs for state-owned enterprises and tunneling activities. We show that for state-owned enterprises, which have lower incentives to avoid tax, effective internal control prevents managers from paying more taxes to cater to the controlling shareholders' interests. We also find that the association between tax avoidance and tunneling is reduced by effective internal control systems. Data Availability: Data are available from the public sources cited in the text.

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.

Controlling Shareholderss Incentive and Corporate Tax Avoidance A Natural Experiment in China

2014 ◽  
Author(s):  
Oliver Zhen Li ◽  
Hang Liu ◽  
Chenkai Ni
Keyword(s):  
Natural Experiment ◽  
Tax Avoidance ◽  
Corporate Tax

The Effects of Institutional Investor on Corporate Tax Avoidance using Quantile Regression

2018 ◽  
Vol 43 (6) ◽  
pp. 233-274
Author(s):  
Ye Ji Lee ◽  
Ki Ho Choi
Keyword(s):  
Quantile Regression ◽  
Tax Avoidance ◽  
Institutional Investor ◽  
Corporate Tax

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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