To read this content please select one of the options below:

Geographic dispersion, tax administration and corporate tax burden: evidence from China

Jian Xie (Guangxi University of Finance and Economics, Nanning, China)
Jiaxin Wang (School of Accounting, Zhongnan University of Economics and Law, Wuhan, China)
Tianyi Lei (Wuhan University, Wuhan, China)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 4 April 2024

60

Abstract

Purpose

From the perspective of local government tax administration, the impact of geographic dispersion on the corporate tax burden is investigated in this paper.

Design/methodology/approach

Using unbalanced panel data with a sample of listed companies from 2003 to 2020 in China, this paper focuses on the effect of geographic dispersion on corporate tax burden and the mechanisms.

Findings

It is found that corporate tax burden is positively related to geographic dispersion. It is also found that geographic dispersion affects the corporate tax burden by increasing the effort of local government tax administration. In addition, the relation between geographic dispersion and corporate tax burden is more pronounced for local SOEs prior to the implementation of Golden Tax Project III and in cases where local governments face stronger financial pressure to obtain revenue.

Originality/value

This study has important implications for the promotion of the coordinated development of the regional economy, as well as the legalization, modernization and informatization of tax administration.

Keywords

Acknowledgements

Funding: We acknowledge The Ministry of Education Research of Social Sciences Youth Funded Projects (No.18YJC790187).

Citation

Xie, J., Wang, J. and Lei, T. (2024), "Geographic dispersion, tax administration and corporate tax burden: evidence from China", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-07-2023-1096

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

Related articles