Big data in tax enforcement and trade credit: Evidence from China

Gaoya Song and Quan Li

Research in International Business and Finance, 2025, vol. 76, issue C

Abstract: This study investigates how big data in tax enforcement (BDTE) affects trade credit. We demonstrate that BDTE not only significantly enhances the trade credit acquisition of enterprises but also boosts the trade credit supply. The path analyses indicate that BDTE increases firms' financing constraints and inhibits corporate earnings management, therefore improving trade credit acquisition and supply. Furthermore, the reinforcing effect of BDTE on corporate trade credit acquisition is more pronounced among low supplier concentration, low quality enterprises and state-owned enterprises (SOEs). The positive relationship between BDTE and trade credit supply is stronger among low supplier concentration, manufacturing enterprises and non-SOEs.

Keywords: The "Golden Tax Phase III"; BDTE; Financing constraints; Earnings management; Trade credit (search for similar items in EconPapers)
JEL-codes: G32 H21 H32 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531925000686
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:76:y:2025:i:c:s0275531925000686

DOI: 10.1016/j.ribaf.2025.102812

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 ().