We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Saving or tunnelling: value effects of tax avoidance in Chinese listed local government-controlled firms.
- Authors
Wenzhou Qu; Shaoqing Kang; Lihong Wang
- Abstract
This paper investigates the value effect of tax avoidance and its underlying mechanisms among Chinese listed local government-controlled (LG) firms. We show that tax avoidance does not promote firm value in LG firms with government ownership smaller than 40 percent and the above negative tunnelling effect is more pronounced when the control rights are concentrated in the local government and weaker when other large shareholders can act as a countervailing force. Finally, we observe a positive relation between tax avoidance and relatedparty transactions as well as overinvestment, again indicating a tunnelling effect in LG firms with government ownership smaller than 40 percent.
- Subjects
GOVERNMENT ownership; BUSINESS enterprises; TAXATION; LOCAL government
- Publication
Accounting & Finance, 2020, Vol 60, Issue 5, p4421
- ISSN
0810-5391
- Publication type
Article
- DOI
10.1111/acfi.12651