Tax enforcement efforts and stock price crash risk: Evidence from China

IF 9.4 3区 管理学 Q1 BUSINESS, FINANCE
Shihua Chen, Yan Ye, Khalil Jebran
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引用次数: 14

Abstract

We propose that firms in regions with strong tax enforcement efforts have low stock price crash risk. Using a large sample of Chinese firms from 2003 to 2017, we find that tax enforcement efforts negatively affect future crash risk. This negative effect is stronger among state-owned companies but weaker when information opacity is higher for firms. These results are robust to alternative measures, additional controls, and additional analyses. We also show that tax avoidance and accounting conservatism are two potential channels through which tax enforcement efforts affect crash risk. The findings contribute to the literature by elaborating that tax enforcement efforts not only alleviate tax-avoiding activities but also can act as a governance mechanism in reducing crash risk in an emerging economy context.

税务执法力度与股价崩盘风险:来自中国的证据
我们认为,在税收执法力度强的地区,公司的股价崩盘风险较低。利用2003年至2017年的中国企业大样本,我们发现税收执法力度对未来的崩溃风险具有负向影响。这种负面影响在国有企业中更强,但在信息不透明程度较高的企业中较弱。这些结果对于替代测量、附加控制和附加分析都是稳健的。我们还表明,避税和会计稳健性是税收执法努力影响崩溃风险的两个潜在渠道。研究结果通过阐述税收执法努力不仅可以减轻避税活动,而且可以作为一种治理机制来降低新兴经济体背景下的崩溃风险,从而为文献做出了贡献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
9.10
自引率
2.00%
发文量
23
期刊介绍: The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.
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