Corporate governance effects of digital finance: Evidence from corporate tax avoidance in China

Xingfang Guo, Tao Wei, Aiping Wang and Haifeng Hu

Research in International Business and Finance, 2024, vol. 72, issue PA

Abstract: This paper tries to uncover the corporate governance effects of digital finance based on the corporate tax avoidance perspective. We find strong evidence that digital finance is negatively associated with corporate tax avoidance. The governance role digital finance plays is primarily mediated through the mechanisms of resource allocation and information governance effects. Further analysis shows that the negative effects of digital finance are more pronounced among higher profitability and non-state-owned firms. Additionally, multiple major shareholders and stronger internal control quality(corporate internal governance) as well as higher institutional investor shareholding and more analyst attention(corporate external governance) can strengthen their negative connection, manifesting the complementarity between digital finance and modern corporate governance mechanisms. Overall, this paper reveals the spillover effects of changes in the financial development environment on corporate tax avoidance strategies. It also contributes to enriching the literature on the corporate governance value of digital finance and the factors influencing corporate tax avoidance.

Keywords: Digital finance; Corporate tax avoidance; Corporate governance (search for similar items in EconPapers)
JEL-codes: G14 G34 H26 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531924003192
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:72:y:2024:i:pa:s0275531924003192

DOI: 10.1016/j.ribaf.2024.102526

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().