Does supply chain digitalization affect corporate tax avoidance?

Shu Shang and Yanxi Li

Accounting Research Journal, 2026, 1-20

Abstract: PurposeThe impact of supply chain digitization on corporate tax avoidance is a critical yet under-explored issue in tax governance within the digital economy. Against this backdrop, this paper aims to conduct an in-depth analysis of the underlying mechanisms and boundary conditions governing the relationship between the two.Design/methodology/approachThis paper uses data from Chinese A-share listed companies (2011–2022) and uses a two-way fixed-effects model to test for direct effects, as well as conducting robustness tests, mediation tests, moderation tests and heterogeneity tests.FindingsSupply chain digitalization significantly inhibits corporate tax avoidance, and the alleviation of financing constraints exerts a positive mediating effect in this relationship. Public scrutiny reinforces this curbing effect, while management myopia weakens it. Furthermore, this effect exhibits significant heterogeneity across different firms. In terms of economic consequences, the curbing effect of supply chain digitization on tax avoidance further reduces corporates’ risk-taking and enhances their reputation.Originality/valueTo the best of the authors’ knowledge, this paper provides the first empirical evidence that supply chain digitalization curbs corporate tax avoidance. By examining moderating effects and heterogeneous roles, and by linking the reduction in corporate tax avoidance to subsequent risk-taking and reputational outcomes, this paper further extends the boundaries of the literature in relevant fields. These findings offer several policy implications.

Keywords: Supply chain digitalization; Corporate tax avoidance; Financing constraints; Public scrutiny; Managerial myopia (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:arj-01-2026-0123

DOI: 10.1108/ARJ-01-2026-0123

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