Industry and geographic peer effects on corporate tax avoidance: Evidence from China

Liang, Q; Li, Q; Lu, M; Shan, Y

Industry and geographic peer effects on corporate tax avoidance: Evidence from China

Liang, Q Li, Q Lu, M Shan, Y

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Pacific Basin Finance Journal, 2021, 67, pp. 101545-101545
Issue Date:: 2021-06-01

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Field	Value	Language
dc.contributor.author	Liang, Q
dc.contributor.author	Li, Q
dc.contributor.author	Lu, M
dc.contributor.author	Shan, Y https://orcid.org/0000-0003-2156-8722
dc.date.accessioned	2021-12-20T21:29:27Z
dc.date.available	2021-12-20T21:29:27Z
dc.date.issued	2021-06-01
dc.identifier.citation	Pacific Basin Finance Journal, 2021, 67, pp. 101545-101545
dc.identifier.issn	0927-538X
dc.identifier.uri	http://hdl.handle.net/10453/152421
dc.description.abstract	This study examines industry and geographic peer effects on tax avoidance as well as their mechanisms and economic consequences in an emerging market, China. Using an instrumental variable approach and after considering a variety of robustness tests, we document causal evidence that a firm's degree of tax avoidance is positively affected by the average degree of tax avoidance of its peer firms in the same industry or province. Further analyses show that both industry and geographic peer effects are driven by the motives of information learning and market competition and depend on the degree of local tax enforcement and executive tax expertise. We also document preliminary evidence that both industry and geographic peer effects benefit firms by improving their investments, dividend payouts, and future performance.
dc.language	en
dc.publisher	Elsevier BV
dc.relation	http://purl.org/au-research/grants/arc/DP180100388
dc.relation	http://purl.org/au-research/grants/arc/DP210101354
dc.relation.ispartof	Pacific Basin Finance Journal
dc.relation.isbasedon	10.1016/j.pacfin.2021.101545
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1501 Accounting, Auditing and Accountability, 1502 Banking, Finance and Investment
dc.subject.classification	Finance
dc.title	Industry and geographic peer effects on corporate tax avoidance: Evidence from China
dc.type	Journal Article
utslib.citation.volume	67
utslib.for	1501 Accounting, Auditing and Accountability
utslib.for	1502 Banking, Finance and Investment
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access	*
dc.date.updated	2021-12-20T21:29:26Z
pubs.publication-status	Published
pubs.volume	67

Abstract:

This study examines industry and geographic peer effects on tax avoidance as well as their mechanisms and economic consequences in an emerging market, China. Using an instrumental variable approach and after considering a variety of robustness tests, we document causal evidence that a firm's degree of tax avoidance is positively affected by the average degree of tax avoidance of its peer firms in the same industry or province. Further analyses show that both industry and geographic peer effects are driven by the motives of information learning and market competition and depend on the degree of local tax enforcement and executive tax expertise. We also document preliminary evidence that both industry and geographic peer effects benefit firms by improving their investments, dividend payouts, and future performance.

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http://hdl.handle.net/10453/152421