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Tax administration informatization, financial tightened regulation, and firm productivity: A quasi-natural experiment based on the "Golden Tax Phase III project"

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  • Wang, Hongyan
  • Cheng, Jiandong
  • Zhou, Hang

Abstract

Against the backdrop of government modernization and rapid advancements in information technology, the 'Golden Tax Phase III Project' (GTP) stands out as a pivotal undertaking aimed at accelerating the digitization of tax administration. This transformation has markedly influenced the operational landscape for enterprises. Utilizing a dataset encompassing Chinese listed companies from 2009 to 2022, alongside considering the staggered provincial rollout of this policy, our study undertakes a comprehensive exploration of the interactive impacts of tax administration digitization and stringent financial oversight on firms' total factor productivity (TFP). The results underscore that the deployment of GTP, embodying the essence of tax administration digitization, has notably augmented firms' TFP levels. This improvement mainly occurs via mechanisms like reducing corporate financing constraints and improving investment efficiency. Moreover, strict financial regulation has a crucial moderating effect on the relationship between tax administration informatization and firms' TFP. This moderating effect varies notably among firms with different sizes and ownership structures. This research offers empirical support for comprehending the influence of government governance on corporate performance. It also gives policymakers useful perspectives for optimizing tax policies and strengthening financial regulation to drive high - quality corporate development.

Suggested Citation

  • Wang, Hongyan & Cheng, Jiandong & Zhou, Hang, 2025. "Tax administration informatization, financial tightened regulation, and firm productivity: A quasi-natural experiment based on the "Golden Tax Phase III project"," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025001662
    DOI: 10.1016/j.iref.2025.104003
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