Regional Peer Effects of Corporate Tax Avoidance
This study empirically demonstrates significant regional peer effects due to tax avoidance. We used peer companies’ idiosyncratic stock returns as an instrumental variable to address potential endogeneity problems. The heterogeneity analysis indicates that for companies with a stronger intensity of...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2021-12-01
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| Series: | Frontiers in Psychology |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fpsyg.2021.744371/full |
| _version_ | 1828953407978733568 |
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| author | Ya Gao Chang Cai Yiwei Cai |
| author_facet | Ya Gao Chang Cai Yiwei Cai |
| author_sort | Ya Gao |
| collection | DOAJ |
| description | This study empirically demonstrates significant regional peer effects due to tax avoidance. We used peer companies’ idiosyncratic stock returns as an instrumental variable to address potential endogeneity problems. The heterogeneity analysis indicates that for companies with a stronger intensity of regional tax collection and management, a higher degree of informatization, and companies with a low management shareholding ratio, the regional peer effects of enterprise tax avoidance are more significant. Finally, we determined that the managers’ information learning, reputation consideration, and information communication are key mechanisms propagating peer effects. The conclusions of this paper enrich and expand the peer effect theory of corporate tax avoidance, thereby providing a theoretical basis and empirical evidence for tax authorities in supervising corporate tax avoidance. |
| first_indexed | 2024-12-14T07:10:36Z |
| format | Article |
| id | doaj.art-cbf456096aac43669ad4a0c0596354b3 |
| institution | Directory Open Access Journal |
| issn | 1664-1078 |
| language | English |
| last_indexed | 2024-12-14T07:10:36Z |
| publishDate | 2021-12-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Psychology |
| spelling | doaj.art-cbf456096aac43669ad4a0c0596354b32022-12-21T23:11:52ZengFrontiers Media S.A.Frontiers in Psychology1664-10782021-12-011210.3389/fpsyg.2021.744371744371Regional Peer Effects of Corporate Tax AvoidanceYa Gao0Chang Cai1Yiwei Cai2School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, ChinaSchool of Public Finance and Taxation, Central University of Finance and Economics, Beijing, ChinaDepartment of Computer Science, Data Science and Statistics, Faculty of Science, University of Bath, Bath, United KingdomThis study empirically demonstrates significant regional peer effects due to tax avoidance. We used peer companies’ idiosyncratic stock returns as an instrumental variable to address potential endogeneity problems. The heterogeneity analysis indicates that for companies with a stronger intensity of regional tax collection and management, a higher degree of informatization, and companies with a low management shareholding ratio, the regional peer effects of enterprise tax avoidance are more significant. Finally, we determined that the managers’ information learning, reputation consideration, and information communication are key mechanisms propagating peer effects. The conclusions of this paper enrich and expand the peer effect theory of corporate tax avoidance, thereby providing a theoretical basis and empirical evidence for tax authorities in supervising corporate tax avoidance.https://www.frontiersin.org/articles/10.3389/fpsyg.2021.744371/fulltax avoidancepeer effectlearningcommunicationregion |
| spellingShingle | Ya Gao Chang Cai Yiwei Cai Regional Peer Effects of Corporate Tax Avoidance Frontiers in Psychology tax avoidance peer effect learning communication region |
| title | Regional Peer Effects of Corporate Tax Avoidance |
| title_full | Regional Peer Effects of Corporate Tax Avoidance |
| title_fullStr | Regional Peer Effects of Corporate Tax Avoidance |
| title_full_unstemmed | Regional Peer Effects of Corporate Tax Avoidance |
| title_short | Regional Peer Effects of Corporate Tax Avoidance |
| title_sort | regional peer effects of corporate tax avoidance |
| topic | tax avoidance peer effect learning communication region |
| url | https://www.frontiersin.org/articles/10.3389/fpsyg.2021.744371/full |
| work_keys_str_mv | AT yagao regionalpeereffectsofcorporatetaxavoidance AT changcai regionalpeereffectsofcorporatetaxavoidance AT yiweicai regionalpeereffectsofcorporatetaxavoidance |