Tax and financial credit risks—Empirical evidence from Chinese investment enterprises

Ruihua Zhu and Fang Chen

Finance Research Letters, 2024, vol. 61, issue C

Abstract: Financial credit allows enterprises to successfully acquire innovative resources. However, studies have ignored the risk of financial credit, especially the impact of tax credit on financial credit risk. Therefore, based on the prospect theory, this study uses a sample of A-share-listed investment-oriented enterprises from 2010 to 2020 and finds that tax credit reduces financial credit risk and corporate heroic behavior reinforces this inhibitory effect. These findings provide new perspectives and practical insights for enterprises for timely control of financial credit risks.

Keywords: Tax credit; Financial credit risk; Prospect theory perspective; Corporate heroic behavior (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:61:y:2024:i:c:s1544612323012898

DOI: 10.1016/j.frl.2023.104917

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