How Do Tax Agents Respond to Anti-corruption Intensity?

Chen Ma (), Maoyong Cheng () and Gerald J. Lobo ()
Additional contact information
Chen Ma: Northwest University
Maoyong Cheng: Xi’an Jiaotong University
Gerald J. Lobo: University of Houston

Journal of Business Ethics, 2024, vol. 190, issue 1, No 8, 137-164

Abstract: Abstract We examine whether anti-corruption intensity strengthens tax enforcement effectiveness in China. Using hand-collected anti-corruption data and aggregate tax enforcement data, which include the probability of tax audits and tax deficiencies, for a sample of 11,687 firm-year observations from 2012 to 2017, we find that anti-corruption intensity increases the deterrence role and the enforcement role of tax audits. We also identify the fear effect as a possible channel through which anti-corruption intensity affects tax enforcement effectiveness. Overall, the results indicate that anti-corruption intensity can improve a revenue agency’s effectiveness.

Keywords: Anti-corruption; Tax enforcement effectiveness; Fear effect (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10551-023-05398-w

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