IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v99y2025ics105752192500016x.html
   My bibliography  Save this article

Tax-related information regulatory capacity and accounting information quality

Author

Listed:
  • Wu, Guanzheng
  • Li, Yang

Abstract

Accounting information communicates businesses' financial position, operational outcomes, and cash flow. It plays a crucial role in aligning the interests of various stakeholders, is a vital tool for financial and accounting oversight, and contributes to improving corporate and national governance. This study examines a sample of Chinese A-share listed companies from 2011 to 2023 and explores the relationship between tax-related information regulatory capacity, represented by the Golden Tax III System, and enterprise accounting information quality. The findings highlight that introducing the Golden Tax III System can improve enterprise accounting information quality. Furthermore, the positive impacts of introducing the Golden Tax III System on enterprise accounting information quality are attained through improving internal control and external governance. Heterogeneous analysis confirms that firms` ownership and external audit lead to heterogeneous policy effects. Specifically, the impacts have a multiplier effect in non-state-owned enterprises and firms with Big Four auditors. The findings demonstrate how digitized tax collection can enhance information transparency and the importance of accounting information governance, support the government's role in external oversight and corporate governance, and contribute to further tax collection and accounting information research.

Suggested Citation

  • Wu, Guanzheng & Li, Yang, 2025. "Tax-related information regulatory capacity and accounting information quality," International Review of Financial Analysis, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:finana:v:99:y:2025:i:c:s105752192500016x
    DOI: 10.1016/j.irfa.2025.103929
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S105752192500016X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.103929?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guo, Yixuan & Wang, Jian & Wang, Heng & Zhang, Fan, 2024. "The impact of big data tax collection and management on inefficient investment of enterprises — A quasi-natural experiment based on the golden tax project III," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 678-689.
    2. Kaiyuan Yang & Xiaoyan Huo & Ruyi Li & Stavros Sindakis & Sakshi Aggarwal, 2024. "Correction to: Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9866-9867, June.
    3. Wang, Jingyi, 2024. "Green finance and the relationship with goodwill: A study based on the perspectives of accounting information quality and financing constraints," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 833-846.
    4. Chen, Lifang & He, Ruzhen, 2024. "Does digital tax enforcement drive corporate digitalization? Evidence from the Golden Tax Project III in China: A pre-registered report," Pacific-Basin Finance Journal, Elsevier, vol. 83(C).
    5. Zhang, Chengrui & Li, Zhaohong & Xu, Jiaqian & Luo, Yiyang, 2024. "Accounting information quality, firm ownership and technology innovation: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 93(C).
    6. Zhou, Qianling & Li, Tao & Gong, Liutang, 2022. "The effect of tax incentives on energy intensity: Evidence from China's VAT reform," Energy Economics, Elsevier, vol. 108(C).
    7. Kaiyuan Yang & Xiaoyan Huo & Ruyi Li & Stavros Sindakis & Sakshi Aggarwal, 2024. "Analyzing Corporate Governance Model with Chinese Characteristics and Accounting Information Disclosure: a Quasi-natural Experimental Study Based on a Special Institutional Arrangement," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9841-9865, June.
    8. Yang, Jie & Ying, Limeng & Xu, Xiaofang, 2024. "Digital transformation and accounting information comparability," Finance Research Letters, Elsevier, vol. 61(C).
    9. Chuanlu Ge & Yuhan Bi & Jia Xu, 2024. "Local donation culture and corporate tax avoidance: Evidence from China," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 734-763, July.
    10. Wei, Wei & Song, Yan & Jin, Ruifeng, 2024. "The impact of tax digitalization on corporate salary structures," Finance Research Letters, Elsevier, vol. 64(C).
    11. Jiang, Xiandeng & Huang, Ruoyao & Wang, Chuanjie, 2023. "Tax enforcement and efficiency wages: Evidence from China’ Golden Tax Project III," Finance Research Letters, Elsevier, vol. 58(PB).
    12. He, Yuhan & Yi, Yang, 2023. "Digitalization of tax administration and corporate performance: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 90(C).
    13. Qiu, Jiayu & Deng, Xinxia & Liang, Rui, 2024. "Can the enterprise intelligent transformation promote accounting information transparency? Pressure from media attention," Finance Research Letters, Elsevier, vol. 66(C).
    14. Guo, Xingfang & Wei, Tao & Wang, Aiping & Hu, Haifeng, 2024. "Corporate governance effects of digital finance: Evidence from corporate tax avoidance in China," Research in International Business and Finance, Elsevier, vol. 72(PA).
    15. Yue Cao & Xinyu Hu & Yu Lu & Jun Su, 2020. "Customer Concentration, Tax Collection Intensity, and Corporate Tax Avoidance," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(11), pages 2563-2593, September.
    16. Zhang, Yifu, 2024. "Capital market liberalization and accounting quality: Evidence from China," Finance Research Letters, Elsevier, vol. 64(C).
    17. Le Zhao, 2023. "The Effect of Tax Authority Enforcement on Earnings Informativeness," European Accounting Review, Taylor & Francis Journals, vol. 32(1), pages 197-216, January.
    18. Ye, Yongwei & Zeng, Lin & Tao, Yunqing & Yun, Feng, 2023. "Tax authority monitoring and corporate information disclosure quality in China," International Review of Financial Analysis, Elsevier, vol. 90(C).
    19. Yue Cao & Xinyu Hu & Yu Lu & Jun Su, 2020. "Customer Concentration, Tax Collection Intensity, and Corporate Tax Avoidance," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(11), pages 2563-2593, September.
    20. Kong, Dongmin & Xiong, Mengxu & Qin, Ni, 2022. "Business Tax reform and CSR engagement: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 82(C).
    21. Lv, Xiaoting & Wu, Ziang, 2024. "The green effect of digital transformation: The impact of digital transformation in fiscal and taxation on regional green development," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 787-800.
    22. Tiantian, Guo & Hailin, Chen & Zhou, Xiao & Ai, Shanru & Siyao, Wang, 2023. "Does corporate digital transformation affect the level of corporate tax avoidance? Empirical evidence from Chinese listed tourism companies," Finance Research Letters, Elsevier, vol. 57(C).
    23. Ke Yan & Min Zuo & Hao Zhang & Yuanyuan Gong & Jiaqi Fang & Daqing Gong, 2022. "Optimization of Tax Collection and Administration Efficiency in Less Developed Regions of Western China," Discrete Dynamics in Nature and Society, Hindawi, vol. 2022, pages 1-8, January.
    24. Chen, Lifang & Xie, Dehao & He, Ruzhen, 2024. "Does digital tax enforcement drive corporate digitalization? Evidence from the Golden tax project III in China: A pre-registered study," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xu, Yanhui & Deng, Fuhua & Feng, Qianbin, 2025. "The effect of tax enforcement digitalization on corporate digital transformation: Evidence from China's listed companies," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1105-1134.
    2. Cheng, Qian & Chen, Boying & Luo, Jingwen, 2024. "The impact of digital tax administration on local government debt: Based on the revision of the tax collection and administration law," Finance Research Letters, Elsevier, vol. 67(PB).
    3. Pang, Silu & Hua, Guihong, 2024. "How does digital tax administration affect R&D manipulation? Evidence from dual machine learning," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    4. Song, Gaoya & Li, Quan, 2025. "Big data in tax enforcement and trade credit: Evidence from China," Research in International Business and Finance, Elsevier, vol. 76(C).
    5. Kangqi Jiang & Xiaofeng Chen & Jiayun Li & Mengling Zhou, 2025. "Technology adoption and extreme stock risk: Evidence from digital tax reform in China," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-20, December.
    6. Umar, Muhammad, 2025. "Does CBDC launch increase tax collection? empirical evidence from China," Finance Research Letters, Elsevier, vol. 71(C).
    7. Zhang, Jian & Wang, Ningzhi & Wu, Wenruo & Zhu, Xinyu, 2025. "Tax information and corporate environmental investment," International Review of Financial Analysis, Elsevier, vol. 97(C).
    8. Liu, Xiaomei & Yang, Zhenhe & Wang, Yuanqing & Gao, Boyuan, 2024. "Parent–subsidiary geographic dispersion and debt aggressiveness: Analysis from the tax enforcement perspective," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    9. Qu, Guimin & Jing, Hao, 2025. "Is new technology always good? Artificial intelligence and corporate tax avoidance: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 98(C).
    10. Wang Dong & Yuan Meng & Jun Chen & Yun Ke, 2025. "Financial Shared Service Centers and Corporate Misconduct: Evidence from China," Journal of Business Ethics, Springer, vol. 199(1), pages 113-139, June.
    11. Ma, Chunguang & Feng, Shunfei & Huang, Wenhui & Chen, Aoyun, 2025. "Political corruption and corporate tax avoidance: A quasi-natural experiment," International Review of Financial Analysis, Elsevier, vol. 99(C).
    12. Lv, Wendai & Meng, Qiuchi & Cao, Yuanyuan & Liu, Jiajia, 2025. "Impact and moderating mechanism of corporate tax avoidance on firm value from the perspective of corporate governance," International Review of Financial Analysis, Elsevier, vol. 99(C).
    13. Huang, Xianhuan & Zhang, Yujia & Chan, Kam C. & Wang, Yao, 2024. "Digital tax enforcement and shadow banking of non-financial firms: Evidence from China's Golden Tax Project III," Finance Research Letters, Elsevier, vol. 70(C).
    14. Xu, Xinyu & Yang, Xiubo & Lian, Hongping, 2024. "How does tax revenue sharing affect local government governance? Empirical evidence from Chinese cities," Finance Research Letters, Elsevier, vol. 64(C).
    15. Wei, Wei & Song, Yan & Jin, Ruifeng, 2024. "The impact of tax digitalization on corporate salary structures," Finance Research Letters, Elsevier, vol. 64(C).
    16. Cheng, Zhiyuan, 2025. "Internal control level and enterprise strategic aggressiveness," Finance Research Letters, Elsevier, vol. 75(C).
    17. Liu, Jun & Huang, Bihui & Hu, Yaoyu, 2024. "The influence of tax incentives on market segmentation in the context of a unified national market," Finance Research Letters, Elsevier, vol. 65(C).
    18. Zhu, Jialei & Xiong, Zhengde & Lu, Xinxin & Yao, Zhu, 2025. "Does ESG rating disagreement impede corporate green innovation?," Global Finance Journal, Elsevier, vol. 64(C).
    19. Guan, Yonghao & Wang, Xinyue & He, Yiqi, 2024. "Structural tax reduction and corporate labor investment efficiency," Finance Research Letters, Elsevier, vol. 62(PA).
    20. Lin, Chao & Ma, Kaili & Zhang, Xing, 2025. "Where technology meets tax: The impact of digital tax administration on tax incentive take-up," Economics Letters, Elsevier, vol. 247(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:99:y:2025:i:c:s105752192500016x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.