Publication Type
Journal Article
Version
acceptedVersion
Publication Date
1-2022
Abstract
This paper explores how postmaterialism culture influences corporate tax avoidance behavior. Using a proprietary dataset of China tax audits, we find that firms owned by investors from countries with higher postmaterialism values are less likely to engage in tax avoidance behavior in China. In addition, we find 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 use a cross-country sample from 21 countries over 22 years. The evidence from the cross-country sample is 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
ISSN
0020-7063
Publisher
World Scientific Publishing
Citation
CUI, Yujia; WANG, Jiwei; and YE, Kangtao.
Postmaterialism and corporate tax avoidance. (2022). International Journal of Accounting.
Available at: https://ink.library.smu.edu.sg/soa_research/1944
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.