 Tax enforcement and corporate donations: evidence from Chinese ‘Golden Tax Phase III’Zhi Jin and Chenghao Huang China Journal of Accounting Studies, 2021, vol. 9, issue 4, 526-548 Abstract: Using the implementation of “Golden Tax Phase III” as a quasi-natural experiment, we take the difference-in-differences (DID) method to examine how changes in taxation technology affect firm donations. Specifically, “Golden Tax Phase III” has reduced the donation level of private enterprises (−21.6%). Moreover, the treatment effect is particularly pronounced in regions with low taxation capacity and enterprises with high tax avoidance. Additional tests show that enhanced tax enforcement decreases rent-seeking donations rather than squeezes out market-oriented donations, and the reduction of donations is not due to the deterioration of cash flow capacity. Overall, these results suggest that the improvement of taxation technology will restrict rent-seeking behaviour and regulate the corporate social responsibility activities of the enterprises. This study not only enriches the relevant research on tax enforcement and corporate social responsibility but also emphasises the significant impact of information infrastructure construction. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rcjaxx:v:9:y:2021:i:4:p:526-548 Ordering information: This journal article can be ordered from DOI: 10.1080/21697213.2022.2053375 Access Statistics for this article China Journal of Accounting Studies is currently edited by Xiaochen Dou More articles in China Journal of Accounting Studies from Taylor & Francis Journals |
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