Publication Type
Conference Paper
Version
Postprint
Publication Date
5-2017
Abstract
Taking advantage of the mandatory disclosure of detected corporate tax evasions in China, we examine why publicly listed firms evade taxes. Different from most prior studies that focus on corporate income tax avoidance, we consider tax evasions related to both income taxes and non-income taxes. We also use a bivariate probit model to account for the partial observability of corporate tax evasion. Many of our regression results using the bivariate probit model are different from the results using the reduced form probit model that ignores the partial observability of tax evasion. Many of our results are also different from those of prior research on the determinants of corporate tax avoidance using the traditional effective tax rate as a proxy for tax avoidance.
Keywords
Tax avoidance, tax evasion, China, SOE
Discipline
Accounting | Asian Studies | Corporate Finance | Taxation
Research Areas
Corporate Reporting and Disclosure
Publication
Asian Bureau of Finance and Economic Research (ABFER) Conference 2017, May 21-23
First Page
1
Last Page
38
City or Country
Singapore
Citation
CHOW, Travis; KE, Bin; YUAN, Hongqi; and ZHANG, Yao.
Why do publicly listed firms evade taxes: Evidence from China. (2017). Asian Bureau of Finance and Economic Research (ABFER) Conference 2017, May 21-23. 1-38.
Available at: https://ink.library.smu.edu.sg/soa_research/1596
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://abfer.org/media/abfer-events-2017/annual-conference/accounting/ac2017p5016_why_do_publicly_listed_firms_evade_taxes.pdf