Does the standardisation of tax enforcement improve corporate financial reporting quality?

References

• Abbott, L.J., Daugherty, B., Parker, S., & Peters, G.F. (2016). Internal audit quality and financial reporting quality: The joint importance of independence and competence. Journal of Accounting Research, 54(1), 3–40. https://doi.org/10.1111/1475-679X.12099
   Web of Science ®Google Scholar
• Aifuwa, H.O., & Embele, K. (2019). Board characteristics and financial reporting. Journal of Accounting and Financial Management, 5(1), 30–44. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3394421
   Google Scholar
• Allingham, M.G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3–4), 323–338. https://eml.berkeley.edu//~saez/course/Allingham&SandmoJPubE(1972).pdf
   Google Scholar
• Almeida, H., Hankins, K.W., & Williams, R. (2017). Risk management with supply contracts. Review of Financial Studies, 30(12), 4179–4215. https://doi.org/10.1093/rfs/hhx051
   Web of Science ®Google Scholar
• Balakrishnan, K., Blouin, J.L., & Guay, W.R. (2019). Tax aggressiveness and corporate transparency. The Accounting Review, 94(1), 45–69. https://doi.org/10.2308/accr-52130
   Web of Science ®Google Scholar
• Bennedsen, M., & Zeume, S. (2018). Corporate tax havens and transparency. Review of Financial Studies, 31(4), 1221–1264. https://doi.org/10.1093/rfs/hhx122
   Web of Science ®Google Scholar
• Choi, T.H., & Pae, J. (2011). Business ethics and financial reporting quality: Evidence from Korea. Journal of Business Ethics, 103(3), 403–427. https://doi.org/10.1007/s10551-011-0871-4
   Web of Science ®Google Scholar
• Cohen, D.A., Dey, A., & Lys, T.Z. (2008). Real and accrual-based earnings management in the pre-and post-sarbanes-oxley periods. The Accounting Review, 83(3), 757–787. https://doi.org/10.2308/accr.2008.83.3.757
   Web of Science ®Google Scholar
• DeBacker, J., Heim, B.T., Tran, A., & Yuskavage, A. (2015). Legal enforcement and corporate behavior: An analysis of tax aggressiveness after an audit. The Journal of Law and Economics, 58(2), 291–324. https://doi.org/10.1086/684037
   Web of Science ®Google Scholar
• Desai, M.A., & Dharmapala, D. (2006). Corporate tax avoidance and high-powered incentives. Journal of Financial Economics, 79(1), 145–179. https://doi.org/10.1016/j.jfineco.2005.02.002
   Web of Science ®Google Scholar
• Dhaliwal, D.S., Gleason, C.A., & Mills, L.F. (2004). Last-chance earnings management: Using the tax expense to meet analysts’ forecasts. Contemporary Accounting Research, 21(2), 431–459. https://doi.org/10.1506/TFVV-UYT1-NNYT-1YFH
   Web of Science ®Google Scholar
• Donohoe, M.P., & Robert Knechel, W. (2014). Does corporate tax aggressiveness influence audit pricing? Contemporary Accounting Research, 31(1), 284–308. https://doi.org/10.1111/1911-3846.12027
   Web of Science ®Google Scholar
• Dyck, A., & Zingales, L. (2004). Private benefits of control: An international comparison. Journal of Finance, 59(2), 537–600. https://doi.org/10.1111/j.1540-6261.2004.00642.x
   Web of Science ®Google Scholar
• Dyreng, S.D., Hanlon, M., & Maydew, E.L. (2008). Long-run corporate tax avoidance. The Accounting Review, 83(1), 61–82. https://doi.org/10.2308/accr.2008.83.1.61
   Web of Science ®Google Scholar
• El Ghoul, S., Guedhami, O., & Pittman, J. (2011). The role of IRS monitoring in equity pricing in public firms. Contemporary Accounting Research, 28(2), 643–674. https://doi.org/10.1111/j.1911-3846.2011.01065.x
   Web of Science ®Google Scholar
• Fan, Z.Y., & Peng, F. (2017). The effects of “business tax replaced with VAT reform” on firms’ tax cuts and industrial division based on the perspective of industrial interconnection. Economic Research Journal 2, 82–95. (in Chinese). https://www.cnki.com.cn/Article/CJFDTotal-JJYJ201702007.htm
   Google Scholar
• Garrett, J., Hoitash, R., & Prawitt, D.F. (2014). Trust and financial reporting quality. Journal of Accounting Research, 52(5), 1087–1125. https://doi.org/10.1111/1475-679X.12063
   Web of Science ®Google Scholar
• Guedhami, O., & Pittman, J. (2008). The importance of IRS monitoring to debt pricing in private firms. Journal of Financial Economics, 90(1), 38–58. https://doi.org/10.1016/j.jfineco.2007.12.002
   Web of Science ®Google Scholar
• Gupta, S., Laux, R.C., & Lynch, D.P. (2016). Do firms use tax reserves to meet analysts’ forecasts? Evidence from the pre-and post-FIN 48 periods. Contemporary Accounting Research, 33(3), 1044–1074. https://doi.org/10.1111/1911-3846.12180
   Web of Science ®Google Scholar
• Ham, C., Lang, M., Seybert, N., & Wang, S. (2017). CFO narcissism and financial reporting quality. Journal of Accounting Research, 55(5), 1089–1135. https://doi.org/10.1111/1475-679X.12176
   Web of Science ®Google Scholar
• Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2–3), 127–178. https://doi.org/10.1016/j.jacceco.2010.09.002
   Web of Science ®Google Scholar
• Hanlon, M., Hoopes, J.L., & Shroff, N. (2014). The effect of tax authority monitoring and enforcement on financial reporting quality. Journal of the American Taxation Association, 36(2), 137–170. https://doi.org/10.2308/atax-50820
   Google Scholar
• Hoopes, J.L., Mescall, D., & Pittman, J.A. (2012). Do IRS audits deter corporate tax avoidance? The Accounting Review, 87(5), 1603–1639. https://doi.org/10.2308/accr-50187
   Web of Science ®Google Scholar
• Huang, H.W., Rose-Green, E., & Lee, C.C. (2012). CEO age and financial reporting quality. Accounting Horizons, 26(4), 725–740. https://doi.org/10.2308/acch-50268
   Web of Science ®Google Scholar
• Iatridis, G. (2010). International financial reporting standards and the quality of financial statement information. International Review of Financial Analysis, 19(3), 193–204. https://doi.org/10.1016/j.irfa.2010.02.004
   Google Scholar
• Kim, J.B., Li, Y., & Zhang, L. (2011). Corporate tax avoidance and stock price crash risk: Firm-level analysis. Journal of Financial Economics, 100(3), 639–662. https://doi.org/10.1016/j.jfineco.2010.07.007
   Web of Science ®Google Scholar
• Kothari, S.P., Leone, A.J., & Wasley, C.E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39(1), 163–197. https://doi.org/10.1016/j.jacceco.2004.11.002
   Web of Science ®Google Scholar
• Krishnan, J., Wen, Y., & Zhao, W. (2011). Legal expertise on corporate audit committees and financial reporting quality. The Accounting Review, 86(6), 2099–2130. https://doi.org/10.2308/accr-10135
   Web of Science ®Google Scholar
• Li, L. (2012). Thoughts on specialized management of tax sources and deepening reform of tax enforcement. China Taxation (7), 9–13. (in Chinese). http://www.cqvip.com/qk/90749x/201207/42504913.html
   Google Scholar
• Li, W., Pittman, J.A., & Wang, Z.T. (2019). The determinants and consequences of tax audits: Some evidence from China. Journal of the American Taxation Association, 41(1), 91–122. https://doi.org/10.2308/atax-52136
   Web of Science ®Google Scholar
• Liu, H., & Ye, K. (2014). Financial development, property rights and corporate tax burden. Journal of Management World (3), 41–52. (in Chinese). https://doi.org/10.19744/j.cnki.11-1235/f.2014.03.005
   Google Scholar
• Liu, H., & Zhao, X. (2019). Does increasing the minimum wage induce tax avoidance? Economic Research Journal, 54(10), 121–135. (in Chinese). https://www.cnki.com.cn/Article/CJFDTotal-JJYJ201910009.html
   Google Scholar
• Qi, B., Tian, G., & Li, L. (2010). Internal control deficiencies of listed companies and quality of financial information. Journal of Management Science, 23(4), 38–47. (in Chinese). http://www.cqvip.com/qk/96668a/201004/35043176.html
   Google Scholar
• Rego, S.O., & Wilson, R. (2012). Equity risk incentives and corporate tax aggressiveness. Journal of Accounting Research, 50(3), 775–810. https://doi.org/10.1111/j.1475-679X.2012.00438.x
   Web of Science ®Google Scholar
• Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. https://doi.org/10.1016/j.jacceco.2006.01.002
   Web of Science ®Google Scholar
• Shevlin, T., Tang, T.Y., & Wilson, R.J. (2012). Domestic income shifting by Chinese listed firms. Journal of the American Taxation Association, 34(1), 1–29. https://doi.org/10.2308/atax-10150
   Google Scholar
• Sun, X., Zhai, S., & Yu, S. (2021). How does big data in tax enforcement affect corporate earnings management? — Evidence from a quasi-natural experiment on the “Third phase of golden tax project”. Accounting Research (1), 67–81. (in Chinese). http://qikan.cqvip.com/Qikan/Article/Detail?id=7104508521
   Google Scholar
• Tang, X., Zhang, J., & Lin, B. (2021). Does the normalization of tax enforcement decrease corporate tax avoidance? — A quasi-natural experiment based on tax administrative penalty discretion standards. Journal of Finance and Economics, 47(6), 19–32. (in Chinese). https://doi.org/10.16538/j.cnki.jfe.20201211.101
   Google Scholar
• Tian, B., & Fan, Z. (2018). Collusion, rent-seeking and tax evasion. Economic Research Journal, (5), 118–131. (in Chinese). https://www.cnki.com.cn/Article/CJFDTotal-JJYJ201805010.htm
   Google Scholar
• Wang, X., Fan, G., & Yu, J. (2017). China market index report by province (2016). Social Sciences Academic Press. (in Chinese).
   Google Scholar
• Xu, W., Zeng, Y., & Zhang, J. (2011). Tax enforcement as a corporate governance mechanism: Empirical evidence from China. Corporate Governance: An International Review, 19(1), 25–40. https://doi.org/10.1111/j.1467-8683.2010.00831.x
   Web of Science ®Google Scholar
• Yang, H., Wei, D., & Sun, J. (2012). Can institutional ownership improve accounting information quality? —The differences of institutional investor types. Accounting Research (9), 16–23+96. (in Chinese). https://www.cnki.com.cn/Article/CJFDTotal-KJYJ201209005.htm
   Google Scholar
• Ye, K., & Liu, H. (2011). Tax enforcement, income tax cost and earnings management. Journal of Management World (5), 140–148. ( in Chinese). https://doi.org/10.19744/j.cnki.11-1235/f.2011.05.012
   Google Scholar
• Yu, N., Zhang, H., & Zhu, Y. (2021). Blockholder heterogeneity, exit threats and financial reporting quality: A natural experiment on the Chinese margin trading program. Accounting Research (3), 45–61. ( in Chinese). http://qikan.cqvip.com/Qikan/Article/Detail?id=7104905096
   Google Scholar
• Zang, A.Y. (2012). Evidence on the trade-off between real activities manipulation and accrual-based earnings management. The Accounting Review, 87(2), 675–703. https://doi.org/10.2308/accr-10196
   Web of Science ®Google Scholar
• Zeng, Y., & Zhang, J. (2009). Can tax enforcement play a role in corporate governance? Journal of Management World (3), 143–151+158. ( in Chinese). https://doi.org/10.19744/j.cnki.11-1235/f.2009.03.016
   Google Scholar
• Zhang, D. (2019). Top management team characteristics and financial reporting quality. The Accounting Review, 94(5), 349–375. https://doi.org/10.1111/1475-679X.12099
   Web of Science ®Google Scholar
• Zhang, H., Ping, F., & Zhang, L. (2019). Independent directors’ geographical distance and financial reporting quality. Auditing Research (1), 81–90. (in Chinese). https://www.cnki.com.cn/Article/CJFDTotal-SJYZ201901012.htm
   Google Scholar
• Zhang, J., Huo, Z., Zeng, Y., Tang, X., & Rui, O.M. (2021). Corporate value added tax avoidance. Accounting Forum, 45(4), 338–362. https://doi.org/10.1080/01559982.2021.1949180
   Web of Science ®Google Scholar
• Zhang, K., Ou, Y., & Li, W. (2020). Why tax cuts cannot reduce the corporate burden: Information technology, taxation capacity and corporate tax evasion. Economic Research Journal (3), 116–132. (in Chinese). http://qikan.cqvip.com/Qikan/Article/Detail?id=7101260507
   Google Scholar