The Extreme Outcomes of Corporate Tax Management: Evidence from Chinese Listed Enterprises
Keywords:
Corporate tax management, Stock price crash risk, conflict of interest, state-controlled enterprises (SOEs)Abstract
This study presents an empirical analysis of how corporate tax management and government ownership influence a firm’s stock price crash risk. The study investigates firm-specific stock price crash to corporate tax management based on a sample of Chinese listed enterprises during 2008 to 2013 period and finds that tax management activities can lead to a significant decline in short-term crash risk. However, the results show that tax management would lead to the high probability of future crash risk, which is consistent with agency conflict between management and shareholders. Because of the opacity and complexity of tax management, there exists opportunities for short-term rentseeking which can lead to future crashes. In addition, the study finds that the positive relationship between tax management and future crash risk is more pronounced in enterprises controlled by the municipal government.
Downloads
Downloads
Published
How to Cite
Issue
Section
License
Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.
An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on www.ijie.um.edu.my. Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at www.ijie.um.edu.my.
All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.
