Economic policy uncertainty, tax quotas and corporate tax burden: Evidence from China

Economic uncertainty, ownership structure and small and medium enterprises performance

“…These results are consistent with Madanoglu and Ozdemir (2019) and Yang et al (2019). Under uncertainty, changes in tax policies mainly focus on state‐owned firms instead of foreign‐owned firms, this implies foreign‐owned firms have fewer tax burdens than other firms (Dang et al, 2019). Their activities are not only less responsive to changes in the economic environment but also, thanks to better risk management, they can suffer effects from the uncertainty and pull out of their difficulties to obtain higher performances (Yang et al, 2019).…”

“…Previous studies reveal that the influence level of economic uncertainty varies among different ownership types (e.g., Gulen & Ion, 2015; Wang et al, 2014). In particular, Dang, Fang, and He (2019) find the differences in the effect of economic uncertainty on corporate tax between state firms and non‐state firms, for which tax burdens are primarily significant in state‐owned enterprises. Wang et al (2014) also emphasise the importance of foreign ownership in reducing the negative effects of economic uncertainty, particularly since, unlike state‐owned firms, foreign‐owned firms tend to have more reactive motilities in economic‐related policy.…”

“…While a related study of Wang et al (2014) employs interaction terms of dummy non‐state enterprises and economic policy uncertainty focusing on Chinese listed companies, our study attempts to analyse the influence of ownership structure on the relation between economic uncertainty and the efficiency of SMEs and we distinguish between the ownership types of government, foreign and private domestic firms. Although research is increasingly using the economic uncertainty index to proxy the economic policy effect as the explanatory variables in their regressions (e.g., Dang et al, 2019; Li & Yang, 2015), these studies have only assessed the impact of economic policy uncertainty on corporate investment and tax burdens, thereby offering a bleak picture of its relative significance in the performance estimates of SMEs.…”

Economic Policy Uncertainty in Banking: A Literature Review

“…They also find that economic policy uncertainty has a significant positive impact on corporate cash holdings. Dang et al (2019) examine the effect of economic policy uncertainty on corporate tax burden, and find that economic policy uncertainty is positively related to corporate tax burden, and the effect is stronger when the tax quotas are higher. They also find that economic policy uncertainty strengthens tax collection by increasing government fiscal pressure, and thereby increasing the corporate tax burden.…”

Economic Policy Uncertainty and Local Carbon Emission Trading: A Multifractal Analysis from US and Guangdong

“…With this view, numerous studies contribute to the carbon emission trading field with regard to the mechanism and consequences of carbon emission trading market [2][3][4][5][6][7][8][9][10][11][12][13][14]. Also, as an ideal proxy for the measurement of macroeconomic fluctuation, economic policy uncertainty index has been commonly employed by the financial researchers [15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30]. Due to the huge impact of economic policy changes, several studies link economic policy uncertainty with carbon emissions to check the correlations between them.…”