Dynamic relationship between tax reputation, digital transformation, and corporate tax compliance in financial markets

Based on a dataset of non-financial A-share listed companies in China from 2015 to 2022, this study conducts an in-depth analysis of the dynamic relationship between tax reputation and digital transformation in shaping corporate tax compliance behavior. The findings reveal that both enhanced tax reputation and advancements in digital transformation significantly and positively influence corporate tax compliance. Moreover, company size emerges as a critical moderating factor, affecting not only the strength of the relationship between digital transformation and tax compliance but also demonstrating a threshold effect. Specifically, the impact of digital transformation on tax compliance varies significantly across companies of different sizes. These differences are evident in whether companies are audited by the Big Four accounting firms and are particularly pronounced between high-tech and non-high-tech industries. Notably, companies audited by the Big Four and those operating in the high-tech sector show greater improvements in tax compliance during the digital transformation process.