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

Additional URL

https://doi.org/10.1142/S1094406023500026

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