Search Results (16)

The tax burden significantly influences corporate sustainability, making the study of the impact of supply chain transaction volatility on corporate tax burden crucial for alleviating tax pressures and promoting healthy corporate development. Using a sample of A-share listed companies in China from 2013 to 2019, we find the following: (1) Overall, supplier transaction volatility significantly increases corporate tax burden, while customer transaction volatility does not have an effect, a finding that remains robust under various tests for endogeneity. (2) Mechanism analysis reveals that supplier transaction volatility raises the level of corporate tax burden by increasing operational risk and relationship maintenance costs. (3) Further analysis indicates that the volatility of major supplier transactions exacerbates corporate income tax burdens, while the impact of customer transaction fluctuations on the tax burden is more pronounced for non-state-owned enterprises, and state-owned enterprises experience a suppressive effect on value-added tax from customer transaction volatility. This study clarifies the tax burden dynamics among supply chain firms, expands the literature on the determinants of corporate tax burdens and the economic consequences of transaction volatility, and provides insights for promoting corporate sustainability. Full article

Tax compliance and avoidance are critical issues for governments and businesses worldwide, especially as businesses often use legal methods to minimize taxes, which can impact public revenue and equity within the tax system. This study focuses on understanding the factors influencing tax avoidance behaviors among SMEs in Greece’s tourism sector, a sector that has received limited research attention. To this end, a quantitative cross-sectional design was employed, using a structured questionnaire to explore potential factors influencing tax avoidance behavior. Data were collected from 534 SME managers and analyzed using Structural Equation Modeling (SEM) to assess the impact of key factors and their interrelationships, including coercive power, digital transformation, tax knowledge, firm performance, and perceived fairness, on tax avoidance. In addition, corporate social responsibility (CSR) was included as a moderator variable, while coercive power and digital transformation were assessed as mediators. Furthermore, Multi-Group Analysis (MGA) was conducted to explore the differences between small and medium enterprises, as well as different ownership structures. The results indicate that all key determinants, except perceived fairness, are significantly and positively related to tax avoidance intention. Additionally, it was revealed that coercive power increases tax avoidance through firm performance and tax knowledge, while digital transformation mediates the influence of firm performance on tax avoidance by curtailing avoidance intentions. While CSR mitigates the negative influence of coercive power, digital transformation has a dual role: that of promoting transparency and strategic efforts to reduce the tax burden. These findings have important policy implications, as policymakers seek to promote digital adoption and enhance CSR engagement while formulating specific regulatory strategies to reduce tax avoidance among SMEs. Full article

A corporate carbon information disclosure strategy is essentially an environmental responsibility manifestation of “inconsistency between words and deeds”. It has two forms:, green “silence” and green “catering”, both of which restrict the externalization of green productivity and affect the high-quality development of enterprises. This study shows that ① there is a U-shaped relationship between carbon information disclosure strategies and the high-quality development of enterprises. Green “silence” positively affects the high-quality development of enterprises, and the impact of green “catering” on the high-quality development of enterprises changes from negative to positive. ② Green “silence” affects the high-quality development of enterprises by increasing R&D investment, reducing tax burdens, and intensifying financing constraints, while green “catering” affects the high-quality development of enterprises by decreasing R&D investment, increasing the tax burden, and easing financing constraints. ③ If the competition in the industry is fierce, the green “silence” strategy should be adopted. When there is monopoly in the industry, the green “catering” strategy is dominant. The findings of this study not only provide management suggestions for enterprises on how to correctly treat the carbon information disclosure strategies that have been implemented or planned to promote their own high-quality development, but also provide policy inspiration for relevant regulatory authorities to complete the transition from voluntary disclosure to mandatory disclosure. Full article

In the face of the increasingly dire threat of global climate change, reducing carbon emissions has become an urgent priority for governments and corporations worldwide. The aluminum alloy wheel manufacturing industry bears an even heavier burden for emission mitigation due to its high production volume, complex processes, and proportionally higher carbon footprint. With impending carbon taxes and trading policies looming, the industry urgently needs to strike a balance between maximizing profits and minimizing carbon emissions. Leveraging real-world industry data, this research develops four green Activity-Based Costing (ABC) models and utilizes optimization software to compare the following scenarios: non-continuous carbon tax, carbon tax with trading, tiered tax with exemptions, and exemptions combined with trading. Results demonstrate that integrating carbon trading and targeted tax reductions can improve corporate financial positions without severely compromising environmental goals. Although identifying optimal balance points remains a highly complex process, this study equips enterprises and policymakers with quantitative tools to navigate fluctuating carbon regulatory environments. As national policies progress, more multifaceted dynamic carbon tax models will likely provide more profound insights for sustainable development. Full article

Tax and fee reductions serve as pivotal instruments in the deepening of structural reforms on the supply side and constitute a significant element of China’s proactive fiscal policy. Although China’s tax regime encompasses both direct and indirect tax burdens, the direct tax burden directly impacts the operational costs of firms and remains non-transferable. As such, it holds significant influence over corporate growth trajectories. A decrease in the direct tax burden alleviates financing constraints for firms, subsequently reducing their exposure to business risks. Focusing on the innovative output capabilities of firms, this study analyzes A-share-listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2021. It aims to ascertain the influence of direct tax burden reductions on innovation output within the tax and fee reduction framework. The findings indicate that lessening the direct tax burden ameliorates financing constraints, thereby enhancing a firm’s innovative output capabilities. A deeper analysis reveals that non-state-owned enterprises benefit more significantly from this dynamic than their state-owned counterparts, underscoring the potential for targeted tax and fee reduction policies to bolster enterprise innovation. Furthermore, the government should recognize enterprise differentiation and drive broader economic growth through tailored strategies. Notably, the positive impact of mitigating financing constraints on innovation is more pronounced in firms with suboptimal corporate governance structures. While this mechanism notably influences non-invention patent applications, its effect on invention patent applications is comparatively muted. Post-outbreak, the interplay between tax burdens and innovative outputs has intensified, becoming more pronounced than in pre-outbreak times. Full article

The growing concerns about sustainability urge insurance companies to implement Environmental, Social, and Governance (ESG) policies in order to remain competitive. All the three dimensions of corporate sustainability involve taxation; therefore, it is important to establish if this association reflects on financial performance. Our analysis of worldwide property and casualty (P&C) insurers during 2013–2022 reveals that high ESG insurers pay more taxes, while they are less profitable compared to low ESG insurers. This pattern is confirmed using instrumental variable regressions and simultaneous equations systems. We argue that sustainable insurers are less tempted to avoid taxes and do not shift their tax burdens onto policyholders and investors. However, the interplay between taxes and sustainability seems to harm insurers’ profitability, potentially having negative effects on investment and economic growth. This is an important insight for tax authorities and insurance managers. Full article

In the circumstances of increasing forms of corporate reporting, the relevance of the financial information is slightly decreasing, as the reporting strategies do not provide evidence of the potential deterioration of reported earnings, but rather try to hide managers’ earnings management practices through various impression management techniques and lower financial transparency. Therefore, the external auditors’ role becomes essential in mitigating the information asymmetry. This article aims to study the association between a quality audit and corporate tax avoidance. The research methodology was based on two essential stages. The first stage consisted of reviewing the specialized literature by applying the bibliometric analysis. In the second stage, we resorted to an exploratory analysis of the KAMs disclosed by European Union firms listed in 2016–2021. The study was carried out based on the information provided by the Web of Science and Audit Analytics databases. In accordance with the obtained results, we emphasize that more attention should be paid to the association between the KAMs disclosed by auditors regarding the extended audit reports and the indication of corporate tax avoidance through different tax planning metrics. At the same time, the study underlines that collections of data on KAMs’ disclosures could help specialists create a common body of knowledge about KAMs and how they should be used as communication tools between auditors, management, and stakeholders (including the state). The contribution of this article consists of providing informational support to the tax authorities to understand the main concerns regarding the business environment so that they can come up with supporting public tax policies that should facilitate the mission of companies to determine the tax burden. In addition, it provides researchers with a starting point to further explore issues related to tax avoidance techniques and the role of a financial auditor in limiting them. Full article

Using A-share listed companies in Shanghai and Shenzhen from 2015 to 2021 as the research sample, a fixed-effects model was used to examine the effect of the reduction of corporate tax burden on investment efficiency under the tax reduction policy, as well as the role of tax avoidance and financing constraints in the mechanism. The results of the study show that the reduction of tax burden can effectively improve the efficiency of corporate investment, and this positive effect is reflected in the alleviation of corporate under-investment and discouragement of over-investment. The paper also analyses the mechanism through which tax burden affects the efficiency of corporate investment, and finds that tax reduction can discourage inefficient investment by reducing corporate tax avoidance and alleviating corporate financing constraints. In further analysis, it is found that the effect of tax cuts on investment efficiency is more significant in the sample of non-state enterprises, low corporate governance and low marketisation. The findings of the study support the positive significance of the current tax reduction policy. We provide a reference of tax reduction benefits to curb tax avoidance behavior, and provide a basis for relevant policy departments to further accelerate the implementation of tax reduction policies. Full article

This paper took the panel data of 1052 heavily-polluting listed companies from both the Shanghai and Shenzhen Stock Exchange from 2010 to 2017 to empirically analyze the impact of environmental regulation (ERG) on firm performance (FP). The article introduces a mediating effect model to test the mediating role of corporate tax burden (ETR) within the relationship between ERG on FP. The results showed that: (1) ERG has exerted a significant enhancement effect on the performance of heavily polluted firms via the ETR reduction mechanism. (2) The mediating effect of ETR depends on the duration of ERG. A significant time lag exists before the mediating effect starts to work, and the magnitude of the mediating effect increases with the time lag from the execution of the ERG. (3) The mediating effect of ETR varies significantly with the nature of corporate property rights. It is significant for the state-owned firms, while for non-state-owned firms, there is no evidence supporting the existence of the mediating effect of ETR despite ERG still having a significant direct-impact on FP. Based on these findings, we discuss the policy suggestion to optimize the impact of environmental regulation policies in terms of incentivizing the green development of polluting firms. Full article

Sustainable governance has become essential in corporate sustainable development. As female executives bring diversity to corporate governance, their impact on the corporate sustainability has attracted wide attention. Using the evidence from China’s listed companies in Shanghai and Shenzhen A-shares between 2010 and 2019, this paper examines the impact of gender diversity of executives on corporate green innovation. We find that the proportion of female executives has a significant negative impact on corporate green innovation. The results show: (1) Considering the heterogeneity of corporate risks, the negative impact of female executives on green innovation exists when the company is exposed to high risks, that is, in the subsample of firms with high risk-taking level and financial constraints; (2) considering the heterogeneity of corporate characteristics, female executives have a negative impact on green innovation in small non-state-owned companies with high separation of ownership and control; (3) considering the heterogeneity of industries, the effect of female executives on green innovation is significant in non-heavy pollution industries; (4) the mechanism test shows that patriarchy culture weakens the influence of female executives. In an environment where men are in power, the impact of female executives on green innovation is not significant; (5) taking the 2018 environmental fee-to-tax policy as a quasi-experiment, we find that female executives will instead promote corporate green innovation in areas where the environmental tax burden has increased significantly. The results imply that since corporate green innovation is a high-risk investment, female executives will make green innovation decisions more prudently based on corporate operating characteristics. This research provides a new perspective for understanding the role of female executives in corporate governance and corporate sustainable development. Full article

China is currently in a stage of high-quality economic development, but the high energy consumption and high pollution production methods of the construction industry are no longer adaptable to the country’s economic development goals in the new era. As one of the important tools for the government to regulate high-quality advancement, taxation plays a vital role in the green development of the construction industry. This research uses panel data of 26 provinces in China from 2008 to 2017 and constructs a multiple intermediary effect model to conduct an empirical test on the impact of green taxes on the carbon emission efficiency of the construction industry and its mechanism. The results show that green taxation promotes carbon emission efficiency by accelerating the promotion of fixed capital investment in this industry, accelerating the flow of technological elements and technological research and development. This study further verifies that green taxation and carbon emission efficiency present an inverted U-shape relationship, and that the path mechanism of green taxation, fixed capital investment and technological progress-improving carbon emission efficiency of the construction industry has an intermediary effect. On this basis, suggestions are offered to rationally adjust the corporate tax burden, optimize the industrial structure, and actively guide the green transformation of the construction industry. Full article

This study investigated the R&D manipulation of Chinese listed companies under preferential tax policies based on the bunching approach. On this basis, differences in organizational performance aspirations were used to distinguish firm heterogeneity. This was to clarify how tax incentives affected firm innovation performance. The empirical results show that preferential tax policies can effectively reduce the actual tax burden of high-tech enterprises. Some companies have enjoyed corporate income tax breaks by manipulating R&D spending. The counterfactual estimate of R&D intensity shows that the elasticity of taxable income of R&D investment of listed companies in China is between 0.55 and 0.8. The elasticity of taxable income of manufacturing enterprises is between 0.6 and 0.75. Furthermore, within the R&D operating range, firm-level variations will affect innovation performance. The incentive effect of R&D activities of enterprises with a negative organizational performance aspiration gap is higher than that of enterprises with a positive organizational performance aspiration gap. The conclusion provides the basis for the country to improve preferential tax policies for high-tech enterprises. Full article

The diverse tax burdens and economic situations of EU member states are causing investors to relocate their investments to countries that offer better tax conditions and a better economic environment. The total amount of corporate tax revenue is therefore influenced by tax, macroeconomic and other indicators. This paper assesses the importance of tax revenues and tax rates in the context of tax competitiveness in EU states. The aim of the paper is to determine the impact of selected indicators on corporate tax revenues in EU states for the period 2004 to 2019. The source data were drawn from the databases of the European Commission (2021) and The World Bank (2021). The set goal was complemented by an analysis of tax rates and subsequent comparison with corporate tax revenues. Multiple regression analysis was performed to achieve the goal. Two econometric models were compiled that followed the same variables, with the EU13 model dealing with the new member states and the EU15 model dealing with the old EU member states. The results showed that the variables statutory and average effective tax rate do not have a decisive influence on corporate tax revenues in either model. In the new states, the unemployment rate has the most statistically significant effect, while in the old countries GDP has the biggest effect. The result of this work is that there are differences between the new and old member states at different levels, which was ultimately reflected in the different impact of tax and macroeconomic indicators on corporate tax revenues. Full article

The regulation of fiscal and tax policies is an imperative prerequisite for improving the regional innovation capability. In view of this, an attempt was made to select 31 provinces and cities in China as the research object from 2009 to 2018, to extract the fiscal and tax policy text encouraging innovation of the Chinese provinces and cities based on Python, and analyze their impact on regional innovation capability from both a text data and numerical data perspective. It is noteworthy that most of the provincial fiscal policies just follow the national fiscal policies. Each province does not formulate fiscal and tax policy according to its own unique characteristics. Fiscal policies and regional innovation capability exhibit significant spatial heterogeneity. Based on the results of the dynamic panel data model, it is seen that the R&D input and industrial structure are the main sources of improving innovation capability. The fiscal expenditure for science and technology, fiscal and tax policy text, macro tax burden, business tax (BT), and value-added tax (VAT) have a significant boosting effect on the regional innovation capability. However, the corporate income tax hinders the regional innovation capability. Finally, through the robustness test of invention patents, it is found that the fiscal and tax policy text, macro tax burden, and business tax still have a positive effect on invention patents, but the role of value-added tax has changed from promotion to obstruction, and the corporate income tax has become a significant obstacle on invention patents. This shows that China should build a tax system that promotes fair competition, reduce the tax burden of enterprises, encourage enterprises to conduct independent R&D, and guide enterprises in the evolution from the low-tech to high-tech innovation by improving the tax structure and fiscal technology expenditures. Full article

The study applies a multi-sector multi-household static computable general equilibrium (CGE) tax model to assess the economy-wide impacts of taxes in Vietnam. It examines two tax reform scenarios based on the tax reform plan proposed by the Vietnam Ministry of Finance. The first scenario is increasing the value-added tax (VAT) rate to 12% from the current 10% rate. The second scenario relates to setting a competitive corporate income tax (CIT) rate to the lowest rate in ASEAN (Associations of South East Asian Nations) countries by reducing it from 20% to 17%. Correction of current tax distortions will have positive impacts on labour supply, utility, consumption, output, and welfare of households as they reallocate resources from more to less productive sectors of the economy. The CGE model allows for the finding of the macroeconomic and sectoral effects on prices and outputs, as well as on welfare of households. While this study contributes to the literature on the CGE model for the Vietnam economy, it is a small step for finding the optimal tax structure in Vietnam. It recommends that the Vietnam government should increase the standard VAT rate to 12% and reduce CIT rate to 17% to shift the tax burden from capitalists to consumers. Full article