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https://doi.org/10.1080/1331677X.2020.1825105

The effect of Confucian culture on corporate tax avoidance: evidence from China

Shihua Chen
Lili Xu
Khalil Jebran


Puni tekst: engleski pdf 2.242 Kb

str. 1342-1365

preuzimanja: 544

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Sažetak

This study investigates whether Confucian culture can influence
corporate tax avoidance. We measure Confucianism using geographical-proximity based method and opt ordinary least square
regression considering a sample of Chinese firms during
2004–2016. We find strong evidence that Confucian culture and
tax avoidance are negatively associated and this association is
less prominent for state-owned firms. Additional analysis shows
that tax enforcement efforts mitigate the effect of Confucianism
on tax avoidance. The results are consistent and robust to alternative measures of tax avoidance and Confucianism. Overall, the
findings enrich our understanding that Confucian culture reduces
tax avoidance by promoting corporate ethical behavior.

Ključne riječi

Tax avoidance; Confucianism; tax enforcement efforts; state-owned companies; China

Hrčak ID:

301231

URI

https://hrcak.srce.hr/301231

Datum izdavanja:

31.12.2021.

Posjeta: 800 *