2018
DOI: 10.1111/irfi.12226
|View full text |Cite
|
Sign up to set email alerts
|

Anti‐Corruption and Corporate Tax Burden: Evidence from China

Abstract: We examine whether the Chinese government's anti‐corruption enforcement reduces corporate tax burdens. Using a difference‐in‐difference approach, we find tax burdens of firms located in corrupt political leaders’ jurisdictions are lower after these leaders were deposed. An analysis of two tax policy changes shows that the reduction in tax burden is more pronounced when corrupt politicians had more power in levying taxes.

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
2
1

Citation Types

0
3
0
2

Year Published

2020
2020
2024
2024

Publication Types

Select...
7

Relationship

0
7

Authors

Journals

citations
Cited by 9 publications
(5 citation statements)
references
References 17 publications
0
3
0
2
Order By: Relevance
“…As the green industry involves a wide range of industries, the China Securities Regulatory Commission has not classified it. We organized the national 'Eleventh Five-Year Plan' to 'Thirteenth Five-Year Plan' planning documents and referred the 'Green Industry Guidance Catalogue' in 2019 (Chen et al 2010). This study uses a text-mining analysis method to identify 38 keywords such as pumped storage, green packaging, sand control, and ecological gardens 3 .…”
Section: Research Methods and Basic Modelsmentioning
confidence: 99%
“…As the green industry involves a wide range of industries, the China Securities Regulatory Commission has not classified it. We organized the national 'Eleventh Five-Year Plan' to 'Thirteenth Five-Year Plan' planning documents and referred the 'Green Industry Guidance Catalogue' in 2019 (Chen et al 2010). This study uses a text-mining analysis method to identify 38 keywords such as pumped storage, green packaging, sand control, and ecological gardens 3 .…”
Section: Research Methods and Basic Modelsmentioning
confidence: 99%
“…In addition, Murphy et al (1993) argue that taxation can be an important avenue for rent-seeking. China's anti-corruption campaign has discouraged officials and firms from using taxation to build their relationships (Chen et al 2020). In their study, Hao et al (2020) show that corporate donations are used to extract favor from government officials.…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…China's anti‐corruption campaign has discouraged officials and firms from using taxation to build their relationships (Chen et al. 2020). In their study, Hao et al.…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…A maneira como o Estado executa suas funções é muito mais importante do que a tributação nele conferida, no entanto, em muitos países, em especial aqueles em desenvolvimento, a ação governamental está presente sobre inúmeras atividades regulatórias, criando algo considerado como monopólio de poder oficial. Assim políticos corruptos locais envolvidos na fiscalização, buscam renda extra sucedida de favorecimentos (Chen et al, 2018;Tanzi, 1998), de tal modo que a alta carga tributária reduz a capacidade dos indivíduos e empresas a buscarem seus objetivos, diminuindo em nível geral as atividades do setor privado. Neste sentido, quanto maior a parcela de renda ou riqueza do governo, menor a recompensa dos indivíduos sobre suas atividades (Heritage Foundation, 2009).…”
Section: Revisão Da Literaturaunclassified
“…Dreher e Schneider (2010), enfatizam que quanto maior carga tributária, maior será a representatividade da corrupção no país. Bem como, Chen et al (2018), comentam que, ao limitar os poderes políticos locais sobre a política tributária é possível reduzir os encargos tributários das organizações e contribuir com a redução da corrupção na arrecadação de impostos Assim, a seguinte a hipótese é apresentada: H2: países com maior carga tributária, apresentam menor transparência, ou seja, maior nível de percepção da corrupção.…”
Section: Revisão Da Literaturaunclassified