When Controlling Persons Have Shelters: The Effect of Foreign Residency Rights on Tax Credit Ratings

Yihan Wang, Zhihong Zhang, Fan Zhang and Yiying Wang

Emerging Markets Finance and Trade, 2023, vol. 59, issue 7, 2252-2268

Abstract: This paper examines the influence of controlling persons’ foreign residency rights on corporate tax credit ratings (TCRs). The empirical results show that corporate TCRs decrease when the controlling person obtains foreign residency rights. The mechanism analysis indicates that there are three main channels, i.e. more tax avoidance behaviors, more earnings management and a higher frequency of violations. Our findings demonstrate that the controlling person’s foreign residency rights are an indicator worthy of supervisors’ attention. Tax authorities could strengthen the inspection of foreign-related tax activities.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2023.2171726 (text/html)
Access to full text is restricted to subscribers.

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:mes:emfitr:v:59:y:2023:i:7:p:2252-2268

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2023.2171726

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().