Tax enforcement and corporate cash holdings

IF 2.2 3区管理学 Q2 BUSINESS, FINANCE Journal of Business Finance & Accounting Pub Date : 2024-03-06 DOI:10.1111/jbfa.12795

Jiaren Pang, Kun Wang, Le Zhao

引用次数: 0

Abstract

Strengthened tax enforcement increases firms’ expected tax liabilities and uncertainty; thus, firms have incentives to hold more cash. Considering the staggered implementation of a new tax system that increases tax enforcement across provinces in China as a quasi-natural experiment, we employ the difference-in-differences method to test the above prediction. The results indicate that stricter tax enforcement is associated with greater corporate cash holdings. This effect is stronger for financially constrained firms and those located in areas with high tax noncompliance penalties. Additionally, tax enforcement increases firms’ propensity to accumulate cash from cash flows and decreases capital expenditures and dividend payouts. The main findings are robust to the stacked difference-in-differences method, alternative cash holding measures and different sample selections.

查看原文

微信好友朋友圈 QQ好友复制链接

本刊更多论文

税收执法与公司现金持有

税收执法的加强增加了企业的预期税负和不确定性，因此企业有动力持有更多现金。将中国各省交错实施加强税收执法的新税制视为一个准自然实验，我们采用差分法来检验上述预测。结果表明，更严格的税收执法与更多的企业现金持有相关。对于财务紧张的企业和位于税收违规处罚较高地区的企业来说，这种效应更强。此外，税收执法增加了企业从现金流中积累现金的倾向，减少了资本支出和股息支付。主要结论对堆叠差分法、替代现金持有量和不同的样本选择都是稳健的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文去求助

来源期刊

Journal of Business Finance & Accounting BUSINESS, FINANCE-

CiteScore

4.40

自引率

17.20%

发文量

期刊介绍： Journal of Business Finance and Accounting exists to publish high quality research papers in accounting, corporate finance, corporate governance and their interfaces. The interfaces are relevant in many areas such as financial reporting and communication, valuation, financial performance measurement and managerial reward and control structures. A feature of JBFA is that it recognises that informational problems are pervasive in financial markets and business organisations, and that accounting plays an important role in resolving such problems. JBFA welcomes both theoretical and empirical contributions. Nonetheless, theoretical papers should yield novel testable implications, and empirical papers should be theoretically well-motivated. The Editors view accounting and finance as being closely related to economics and, as a consequence, papers submitted will often have theoretical motivations that are grounded in economics. JBFA, however, also seeks papers that complement economics-based theorising with theoretical developments originating in other social science disciplines or traditions. While many papers in JBFA use econometric or related empirical methods, the Editors also welcome contributions that use other empirical research methods. Although the scope of JBFA is broad, it is not a suitable outlet for highly abstract mathematical papers, or empirical papers with inadequate theoretical motivation. Also, papers that study asset pricing, or the operations of financial markets, should have direct implications for one or more of preparers, regulators, users of financial statements, and corporate financial decision makers, or at least should have implications for the development of future research relevant to such users.

期刊最新文献

Issue Information Out‐of‐sample predictability of firm‐specific stock price crashes: A machine learning approach Verifiable content in social media stock‐analysis articles: The long and short of it Top management team incentive dispersion and management earnings forecasts Coarse performance evaluation for envious agents