Does Supply Chain Transaction Volatility Affect Corporate Sustainability? Evidence from Corporate Tax Burden

Xingchen Li, Guochao Liu, Wen Qi (), Yifan Wang and Yanhan Sun
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Xingchen Li: School of Accounting, Shandong Technology and Business University, Yantai 264005, China
Guochao Liu: School of Business, Central University of Finance and Economics, Beijing 100081, China
Wen Qi: School of Business, Central University of Finance and Economics, Beijing 100081, China
Yifan Wang: School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China
Yanhan Sun: School of Business and Administration, Shandong University of Finance and Economics, Jinan 250014, China

Sustainability, 2024, vol. 16, issue 23, 1-20

Abstract: The tax burden significantly influences corporate sustainability, making the study of the impact of supply chain transaction volatility on corporate tax burden crucial for alleviating tax pressures and promoting healthy corporate development. Using a sample of A-share listed companies in China from 2013 to 2019, we find the following: (1) Overall, supplier transaction volatility significantly increases corporate tax burden, while customer transaction volatility does not have an effect, a finding that remains robust under various tests for endogeneity. (2) Mechanism analysis reveals that supplier transaction volatility raises the level of corporate tax burden by increasing operational risk and relationship maintenance costs. (3) Further analysis indicates that the volatility of major supplier transactions exacerbates corporate income tax burdens, while the impact of customer transaction fluctuations on the tax burden is more pronounced for non-state-owned enterprises, and state-owned enterprises experience a suppressive effect on value-added tax from customer transaction volatility. This study clarifies the tax burden dynamics among supply chain firms, expands the literature on the determinants of corporate tax burdens and the economic consequences of transaction volatility, and provides insights for promoting corporate sustainability.

Keywords: supplier transaction volatility; customer transaction volatility; corporate tax burden; income tax burden; value-added tax burden (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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