Does tax avoidance behavior affect bank loan contracts for Chinese listed firms?

Beladi, Hamid; Chao, Chi‐Chur; Hu, May

doi:10.1016/j.irfa.2018.03.016

Cited by 35 publications

(43 citation statements)

References 31 publications

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“…Finally, the results show that the influence of Confucian culture on tax avoidance is less likely for SOEs compared to other types of companies. The findings contribute to literature that shows that the nature of ownership is a distinct attribute of Chinese firms (Beladi et al, 2018;Du, 2015;Khan et al, 2019;Xia et al, 2017;Xu et al, 2011).…”

Section: Introductionsupporting

confidence: 68%

“…Several empirical studies have been carried out to identify factors determining tax avoidance behavior and find supportive evidences for the stakeholders theory (e.g., Armstrong et al, 2015;Chen et al, 2010;Hanlon & Heitzman, 2010). While some of the other studies investigated the economic consequences of tax avoidance (e.g., Beladi et al, 2018;Kim, Li, & Zhang, 2011;Martin et al, 2017). Although researchers have paid more attention to formal governance mechanisms, some of the studies have identified that informal institutions are also effective in reducing tax avoidance.…”

Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

“…Following prior studies, we use three different measures of tax avoidance because different measures capture different aspects of tax avoidance (Beladi et al, 2018;Cen et al, 2017;Chen et al, 2010;Desai & Dharmapala, 2006;Dyreng et al, 2008;Frank, Lynch, & Rego, 2009;Hanlon & Heitzman, 2010). The first method is based on the effective tax rate, and the other two methods are based on the book-tax difference.…”

Section: Measures Of Tax Avoidancementioning

confidence: 99%

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The effect of Confucian culture on corporate tax avoidance: evidence from China

Chen

Jebran

2020

Economic Research-Ekonomska Istraživanja

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This study investigates whether Confucian culture can influence corporate tax avoidance. We measure Confucianism using geographical-proximity based method and opt ordinary least square regression considering a sample of Chinese firms during 2004-2016. We find strong evidence that Confucian culture and tax avoidance are negatively associated and this association is less prominent for state-owned firms. Additional analysis shows that tax enforcement efforts mitigate the effect of Confucianism on tax avoidance. The results are consistent and robust to alternative measures of tax avoidance and Confucianism. Overall, the findings enrich our understanding that Confucian culture reduces tax avoidance by promoting corporate ethical behavior.

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Section: Introductionsupporting

confidence: 68%

Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

Section: Measures Of Tax Avoidancementioning

confidence: 99%

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The effect of Confucian culture on corporate tax avoidance: evidence from China

Chen

Jebran

2020

Economic Research-Ekonomska Istraživanja

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“…RESSET is a database provided by Beijing Gildata Resset Data Tech Co., Ltd (http://www1.resset.cn:8080/product/index.jsp?lang=en) that is a Chinese high and new technology enterprise specializing in financial database and related investment research software. The RESSET database has been widely used by researchers to obtain financial data of Chinese listed firms (e.g., Beladi, Chao, & Hu, ; Fonseka, Samarakoon, & Tian, ; Li, Song, & Wu, ; Wang & Qian, ). We got all the financial data relating to input and output variables listed in Table from RESSET database.…”

Section: Methodology and Datamentioning

confidence: 99%

A quantitative study of financing efficiency of low‐carbon companies: A three‐stage data envelopment analysis

Liu

Gao

2019

Bus Strat Env

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This study set out to evaluate the financing efficiency of low-carbon companies.Applying a three-stage data envelopment analysis with the data from 85 listed companies in China's low-carbon industries over the period 2011 to 2017, this study has found that the overall financing efficiency of low-carbon companies was relatively high, and the pure technical efficiency was quite steady over the period. The overall financing efficiency of these low-carbon companies on average tended to change with the scale efficiency. This study has also shown that the scale efficiency was the main constraint influencing the financing efficiency of low-carbon companies in China over the period. Our results are robust and have significant implications for policy makers and corporate managers.

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“…Tingginya DER berhubungan dengan tingginya tindakan penghindaran pajak yang dilakukan perusahaan (Gupta and Newberry, 1997;Isin, 2018;and Beladi et al, 2018). Apabila tidak dibatasi, maka perusahaan akan lebih cenderung menggunakan lebih banyak utang daripada modal karena adanya insentif pajak tax shield atas beban bunga yang muncul (Miller & Modigliani, 1963).…”

Section: Debt To Equity Ratiounclassified

Analisis Efektivitas Peraturan Kementerian Keuangan Nomor 169/PMK.010/2015 (Pmk-169) (Studi Empiris Atas Perusahaan Publik Yang Terdaftar Di Bursa Efek Indonesia Periode 2015-2016)

Saragih

2018

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State revenue from the taxation sector remains dominating over revenue from other sources. This revenue will be constantly increased in the future. In so doing, the Government has issued the Minister of Finance Regulation Number 169/PMK.010/2015 (PMK-169). This regulation sets the debt-to-equity ratio allowable for firms in general at four to one (4:1) and has been effective from tax year 2016. This is necessary to avoid thin capitalization practice that can lower state revenue from the taxation sector as it opens a tax avoidance opportunity for firms through interest-based debt. This research was intended to analyse the effectiveness of PMK-169 for firms listed on the Bursa Efek Indonesia over 2015 (before) and 2016 (after). By employing paired sample t-test analysis technique on 316 observations of 158 firms, it was proven that there was a significant difference in the debt-to-equity ratio as well as tax avoidance before and after the enactment of the regulation. The implication of this finding is that PMK-169 as a debt control regulation is considered effective to implement.

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Does tax avoidance behavior affect bank loan contracts for Chinese listed firms?

Cited by 35 publications

References 31 publications

The effect of Confucian culture on corporate tax avoidance: evidence from China

The effect of Confucian culture on corporate tax avoidance: evidence from China

A quantitative study of financing efficiency of low‐carbon companies: A three‐stage data envelopment analysis

Analisis Efektivitas Peraturan Kementerian Keuangan Nomor 169/PMK.010/2015 (Pmk-169) (Studi Empiris Atas Perusahaan Publik Yang Terdaftar Di Bursa Efek Indonesia Periode 2015-2016)

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