Affiliation of Author(s):国际商学院
Journal:Asia-Pacific Journal of Accounting & Economics
Funded by:国家自然科学基金项目
Abstract:We investigate the impact of the China Securities Investor Service Center (CSISC), a not-for-profit minority institutional investor, on corporate tax avoidance. Employing a difference-in-differences (DID) model based on a sample of Chinese listed companies during 2014–2017, we find that CSISC shareholding reduces corporate tax avoidance. We check this finding’s robustness using alternative measures of tax avoidance, alternative sampling, placebo tests, and parallel trend analysis, and our results still hold. In addition, we find the CSISC’s negative impact on corporate tax avoidance is more pronounced in state-owned enterprises (SOEs), firms with worse internal and external corporate governance, and regions with stricter tax enforcement. Further analyses reveal that the improved information environment is a potential channel through which the CSISC inhibits corporate tax avoidance. This paper enriches the literature on the impact of minority shareholder protection mechanism and the determinants of corporate tax avoidance.
Indexed by:Journal paper
Volume:1
Number of Words:20000
ISSN No.:1608-1625
Translation or Not:no
Date of Publication:2024-05-27
First Author:wenwen
Co-author:乔菲,冯婧莉,胡慧杰
