Out of Reach? Political Distance and Corporate Tax Avoidance
Regulation is most effective when it is local. This paper examines whether geographic distance between firm headquarters and the local administrative center affects the extent of corporate tax avoidance in China. We find that firms avoid tax more aggressive when located farther to the local administrative center, which is contrary to Kubick et al. (2017) and withholds with various robustness tests. This tax avoidance increase effect is attenuated by the opening of high-speed railways. Cross-sectional analyses show that this effect is more pronounced in provinces with lower legal environment and in firms that are not audited by the Big 10
Year of publication: |
2022
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Authors: | Mo, Shenwei ; Meng, Qingxi ; Gong, Xiaoyun |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
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