Strategic Radicalization and Corporate Tax Avoidance

Ruonan Yang

doi:10.54691/bcpbm.v21i.1200

Authors

Ruonan Yang

DOI:

https://doi.org/10.54691/bcpbm.v21i.1200

Keywords:

Strategic tax avoidance, corporate tax, listed companies

Abstract

This paper examines the effect of strategic radicalization on corporate tax avoidance by taking A-share listed companies in China from 2007 to 2020 as the research object. It is found that the degree of strategic radicalization has a significant positive effect on corporate tax avoidance, and the higher the degree of strategic radicalization, the greater the degree of corporate tax avoidance, and the finding still stands after the robustness test. Further study finds that the higher the equity concentration and lower the quality of internal control, the stronger the effect of strategic radicalization on corporate tax avoidance. The research in this paper enriches the literature on the economic consequences of corporate strategic radicalization and, at the same time, complements the factors influencing corporate tax avoidance, which are of great reference value to corporate management, stakeholders and tax regulators.

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