Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis
According to deduction principle in China's tax law, the excess transaction costs of enterprises are limited. Therefore, the higher the rate of enterprise transaction costs, the higher the transaction costs cannot be deducted before tax, resulting in the taxable income tax greater than the acco...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
EDP Sciences
2021-01-01
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| Series: | E3S Web of Conferences |
| Online Access: | https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/29/e3sconf_eem2021_02005.pdf |
| _version_ | 1818641107524780032 |
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| author | Wu Xiaojuan Cheng Hongwei |
| author_facet | Wu Xiaojuan Cheng Hongwei |
| author_sort | Wu Xiaojuan |
| collection | DOAJ |
| description | According to deduction principle in China's tax law, the excess transaction costs of enterprises are limited. Therefore, the higher the rate of enterprise transaction costs, the higher the transaction costs cannot be deducted before tax, resulting in the taxable income tax greater than the accounting profit. From the dynamic perspective, it is difficult to reduce the income tax burden when the accounting profit of the enterprise decreases, which will enhance the stickiness of the enterprise tax burden. On the basis of this theoretical analysis, this paper empirically tests the relationship between transaction costs and corporate tax stickiness with the big data samples of Chinese listed companies from 2009 to 2018. The empirical results show that with the increase of transaction cost rate, the stickiness of corporate tax burden will be strengthened. |
| first_indexed | 2024-12-16T23:21:54Z |
| format | Article |
| id | doaj.art-1cf753127bad4c3698f9e54e19f40cc6 |
| institution | Directory Open Access Journal |
| issn | 2267-1242 |
| language | English |
| last_indexed | 2024-12-16T23:21:54Z |
| publishDate | 2021-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | E3S Web of Conferences |
| spelling | doaj.art-1cf753127bad4c3698f9e54e19f40cc62022-12-21T22:12:08ZengEDP SciencesE3S Web of Conferences2267-12422021-01-012530200510.1051/e3sconf/202125302005e3sconf_eem2021_02005Transaction Costs and Corporate Tax Stickiness: Based on Big Data AnalysisWu Xiaojuan0Cheng Hongwei1Business School Sichuan UniversityBusiness School Sichuan UniversityAccording to deduction principle in China's tax law, the excess transaction costs of enterprises are limited. Therefore, the higher the rate of enterprise transaction costs, the higher the transaction costs cannot be deducted before tax, resulting in the taxable income tax greater than the accounting profit. From the dynamic perspective, it is difficult to reduce the income tax burden when the accounting profit of the enterprise decreases, which will enhance the stickiness of the enterprise tax burden. On the basis of this theoretical analysis, this paper empirically tests the relationship between transaction costs and corporate tax stickiness with the big data samples of Chinese listed companies from 2009 to 2018. The empirical results show that with the increase of transaction cost rate, the stickiness of corporate tax burden will be strengthened.https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/29/e3sconf_eem2021_02005.pdf |
| spellingShingle | Wu Xiaojuan Cheng Hongwei Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis E3S Web of Conferences |
| title | Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis |
| title_full | Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis |
| title_fullStr | Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis |
| title_full_unstemmed | Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis |
| title_short | Transaction Costs and Corporate Tax Stickiness: Based on Big Data Analysis |
| title_sort | transaction costs and corporate tax stickiness based on big data analysis |
| url | https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/29/e3sconf_eem2021_02005.pdf |
| work_keys_str_mv | AT wuxiaojuan transactioncostsandcorporatetaxstickinessbasedonbigdataanalysis AT chenghongwei transactioncostsandcorporatetaxstickinessbasedonbigdataanalysis |