Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 11, 2023 erstellt
Beschreibung:
We investigate the impact of investor site visits on corporate tax avoidance behavior by using a sample of A-share listed nonfinancial firms on Shenzhen Stock Exchange from 2012 to 2021. We find that investors’ site visits effectively inhibit excess corporate tax avoidance. We confirm the causal relationship from site visits to reduced corporate tax avoidance using instrumental variable (IV) and propensity scores matching difference-in-differences (PSM-DiD) analyses. The result is also robust to alternative measures of tax avoidance and site visits. We further show that the inhibitory effect of site visits on tax avoidance is more pronounced for firms with a poor information environment, for firms located in regions with a weak legal environment, and when the visiting investors have a higher reputation. Overall, our results demonstrate the important economic consequences of site visits as a direct communication between firms and their investors