Collectivist Culture and Corporate Tax Avoidance: Evidence from China

Huijie Cui (), Shiqiang Chen (), Dongmin Kong () and Yonggen Luo ()
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Huijie Cui: Beijing Foreign Studies University
Shiqiang Chen: University of Macau
Dongmin Kong: Huazhong University of Science and Technology
Yonggen Luo: Guangzhou University

Journal of Business Ethics, 2025, vol. 200, issue 2, No 10, 417-443

Abstract: Abstract Ecological theory always treats culture as a response to the demands of the environment. Farming, in the history of the world, has significantly influenced the formation of human culture. This paper examines the relationship between managers’ rice culture and corporate tax avoidance. The main finding shows managers from collectivist rice planting areas are less likely to engage in tax avoidance activities. This link is more pronounced in firms with better governance and greater gender diversification and in firms where managers have academic experience. Additionally, the relationship is enhanced in areas with higher regional trust areas and higher tax enforcement regions. Finally, our results are robust to a battery of additional analyses. Overall, our study supports the important role of cultural factors in corporate strategic decision-making.

Keywords: Rice culture; Tax avoidance; Regional difference; Corporate governance (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10551-024-05850-5

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