 Tax avoidance news, investor behavior, and stock market performanceQi Su and Yawen Deng Finance Research Letters, 2024, vol. 67, issue PA Abstract: This study investigates the relationship between tax avoidance news, investor behavior, and stock market performance in the Chinese financial context. Leveraging a comprehensive dataset spanning 2020–2023, we employ regression analyses and robustness tests to examine the impact of tax avoidance news on stock market performance. This quantitative empirical study addresses a significant gap in our understanding of the financial implications of tax avoidance news in China, highlighting its substantial influence on investor decisions and market dynamics. Key findings indicate that tax avoidance news leads to increased stock price volatility, moderated by investor trading behavior. This research contributes to the literature on taxation and financial markets by offering practical insights for policymakers, investors, and corporate entities. By understanding these dynamics, stakeholders can better navigate the complexities of financial markets and enhance corporate transparency and governance. The findings underscore the importance of effective communication and ethical practices in mitigating adverse market reactions, potentially influencing regulatory reforms and investment strategies. Keywords: Tax avoidance; Investor behavior; Stock market performance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s154461232400864x DOI: 10.1016/j.frl.2024.105834 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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