Li, Chen, Wang, Yaping, Wu, Liansheng and Xiao, Jason Zezhong ![]() |
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Official URL: http://dx.doi.org/10.1080/1351847X.2012.753465
Abstract
We use the occasion of a change in tax policy that raised the tax rate for many of the listed companies in China to examine tax-induced earnings management (TEM) from the perspective of political connections. We find that when the tax rate increased, only those affected firms with politically connected management engaged in TEM. This suggests that, in addition to motivation for managing earnings, capability of influencing tax authorities is also an important determinant of TEM. We also find that TEM helped the firms with politically connected management to reduce their tax burden.
Item Type: | Article |
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Date Type: | Publication |
Status: | Published |
Schools: | Business (Including Economics) |
Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HJ Public Finance J Political Science > JQ Political institutions Asia |
Uncontrolled Keywords: | China, earnings management, effective tax rate, political connections, tax policy |
Additional Information: | PDF uploaded in accordance with publisher's policies at http://www.sherpa.ac.uk/romeo/issn/1351-847X/ (accessed 10.06.16). |
Publisher: | Taylor and Francis |
ISSN: | 1351-847X |
Date of First Compliant Deposit: | 10 June 2016 |
Date of Acceptance: | 23 November 2012 |
Last Modified: | 29 Nov 2024 06:30 |
URI: | https://orca.cardiff.ac.uk/id/eprint/46564 |
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