Publication Type
Journal Article
Version
submittedVersion
Publication Date
1-2023
Abstract
Using a proprietary dataset of China tax audits, we found that firms owned by investors from countries with higher postmaterialism values were less likely to engage in tax-avoidance behavior in China. In addition, we found some evidence that the negative association between postmaterialism and tax avoidance is more pronounced when tax enforcement is stronger, indicating that national culture and formal institutions act as complements. To check the external validity of our main results, we further used a cross-country sample from 21 countries over 22 years. The evidence from the cross-country sample was consistent with the findings obtained from the China tax audits setting.
Keywords
Postmaterialism, culture, tax avoidance, tax enforcement, China, Cross-country
Discipline
Accounting | Corporate Finance
Research Areas
Corporate Reporting and Disclosure
Publication
International Journal of Accounting
Volume
58
Issue
1
ISSN
0020-7063
Identifier
10.1142/S1094406023500026
Publisher
World Scientific Publishing
Citation
WANG, Jiwei; WANG, Jiwei; and YE, Kangtao.
Postmaterialism and corporate tax avoidance. (2023). International Journal of Accounting. 58, (1),.
Available at: https://ink.library.smu.edu.sg/soa_research/2001
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1142/S1094406023500026