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Alternative data and corporate tax avoidance: Evidence from online sales disclosure in China

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  • Liu, Shangqun
  • Li, Qian

Abstract

We examine the impact of releasing alternative data on firm-level tax avoidance. By using the public release of firms’ online sales data in a prominent Chinese financial database as an exogenous shock, we find that corporate tax avoidance significantly decreases with the disclosure of such data. The transmission mechanism reveals that firms covered by online sales data exhibit less intertemporal income shifting and fewer abnormal related-party transactions. Further analyses show that the negative relation between online sales disclosure and corporate tax avoidance is more pronounced for firms with greater tax-planning capacity, higher market competition intensity, a larger proportion of online sales relative to revenue, and for non-state-owned enterprises. These insights provide novel avenues for identifying and mitigating managerial incentives and capabilities to engage in tax avoidance.

Suggested Citation

  • Liu, Shangqun & Li, Qian, 2026. "Alternative data and corporate tax avoidance: Evidence from online sales disclosure in China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 22(1).
    • Handle: RePEc:eee:jocaae:v:22:y:2026:i:1:s1815566925000736
    DOI: 10.1016/j.jcae.2025.100526
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