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Does digital tax enforcement drive corporate digitalization? Evidence from the Golden tax project III in China: A pre-registered study

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  • Chen, Lifang
  • Xie, Dehao
  • He, Ruzhen

Abstract

This pre-registered study executes the empirical design approved in the associated pre-registered report (Chen and He, 2024) to analyze the interaction between the tax enforcement and corporate behavior based on a digital perspective, with the Golden Tax Project III in China as the quasi-natural experiment. The study finds following conclusions: 1) the implementation of the Golden Tax Project III significantly promotes the firm digitalization. 2) the Golden Tax Project III has formed a regulatory impact on firm tax risk management, driving firms to promote digitalization for better tax risk management. 3) the promotion effect of the Golden Tax Project III on the firm digitalization helps to improve firms' total factor productivity. This article extends the economic consequences of tax digitalization and provides a new perspective for promoting high-quality economic development through the coordinated advancement of digital government and digital economy.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:pacfin:v:86:y:2024:i:c:s0927538x24002026
    DOI: 10.1016/j.pacfin.2024.102451
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    References listed on IDEAS

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    Cited by:

    1. 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).
    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).

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    More about this item

    Keywords

    Tax enforcement; Golden tax project; Digitalization; Total factor productivity;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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