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The impact of media attention on corporate tax avoidance: A study based on Chinese A-share listed companies

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  • Qi, Haozhi
  • Li, Muyu
  • zhang, Han

Abstract

By using data from China's A-share listed companies from 2018 to 2021, This article studies the impact and mechanism of media attention on corporate tax avoidance. The results show that enterprises that receive more media attention have a lower level of tax avoidance, that is, media coverage can effectively reduce the level of tax avoidance. Furthermore, negative reporting on enterprises is more effective in reducing tax avoidance than positive or neutral reporting. Mechanism analysis shows that media attention can effectively promote enterprises to enhance internal control, thereby reducing tax avoidance. The results of heterogeneity analysis show that compared to non-state-owned enterprises and smaller enterprises, media attention has a higher impact on the tax avoidance level of state-owned and large enterprises. The research conclusion of this article indicates that strengthening media attention and supervision of enterprises is an effective measure to improve corporate governance and reduce tax avoidance.

Suggested Citation

  • Qi, Haozhi & Li, Muyu & zhang, Han, 2023. "The impact of media attention on corporate tax avoidance: A study based on Chinese A-share listed companies," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009662
    DOI: 10.1016/j.frl.2023.104594
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    References listed on IDEAS

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    1. Alexander Dyck & Natalya Volchkova & Luigi Zingales, 2008. "The Corporate Governance Role of the Media: Evidence from Russia," Journal of Finance, American Finance Association, vol. 63(3), pages 1093-1135, June.
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    3. John Gallemore & Edward L. Maydew & Jacob R. Thornock, 2014. "The Reputational Costs of Tax Avoidance," Contemporary Accounting Research, John Wiley & Sons, vol. 31(4), pages 1103-1133, December.
    4. Badertscher, Brad A. & Katz, Sharon P. & Rego, Sonja O., 2013. "The separation of ownership and control and corporate tax avoidance," Journal of Accounting and Economics, Elsevier, vol. 56(2), pages 228-250.
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