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Tax and financial credit risks—Empirical evidence from Chinese investment enterprises

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  • Zhu, Ruihua
  • Chen, Fang

Abstract

Financial credit allows enterprises to successfully acquire innovative resources. However, studies have ignored the risk of financial credit, especially the impact of tax credit on financial credit risk. Therefore, based on the prospect theory, this study uses a sample of A-share-listed investment-oriented enterprises from 2010 to 2020 and finds that tax credit reduces financial credit risk and corporate heroic behavior reinforces this inhibitory effect. These findings provide new perspectives and practical insights for enterprises for timely control of financial credit risks.

Suggested Citation

  • Zhu, Ruihua & Chen, Fang, 2024. "Tax and financial credit risks—Empirical evidence from Chinese investment enterprises," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612323012898
    DOI: 10.1016/j.frl.2023.104917
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    References listed on IDEAS

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    1. Wang Ying & Igor A. Mayburov & Yulia V. Leontyeva, 2024. "Assessing the Bankruptcy Risks of China's Emerging Port Industries: Modeling and Early Warning," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 23(3), pages 776-800.
    2. Liu, Bojing, 2024. "Economic policy uncertainty, cross-border capital inflows and credit asset allocation risk," Finance Research Letters, Elsevier, vol. 68(C).

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