Cultural diversity and corporate tax avoidance: evidence from Chinese private enterprises
We examine the impact of a city’s cultural diversity on a firm’s tax avoidance (TA). Our findings suggest that when a firm is located in a culturally diverse city, it exhibits less TA than a firm located in a less culturally diverse city. The findings are robust to alternative metrics of cultural di...
| Authors: | ; ; ; |
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| Format: | Electronic Article |
| Language: | English |
| Check availability: | HBZ Gateway |
| Journals Online & Print: | Drawer...
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| Fernleihe: | Fernleihe für die Fachinformationsdienste |
| Published: |
Springer Science + Business Media B. V
2022
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| In: |
Journal of business ethics
Year: 2022, Volume: 176, Issue: 2, Pages: 357-379 |
| Further subjects: | B
Risk cognition
B Aufsatz in Zeitschrift B Cultural Diversity B Tax avoidance B Urban governance B Financial constraints B Monitoring |
| Online Access: |
Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) |
| Summary: | We examine the impact of a city’s cultural diversity on a firm’s tax avoidance (TA). Our findings suggest that when a firm is located in a culturally diverse city, it exhibits less TA than a firm located in a less culturally diverse city. The findings are robust to alternative metrics of cultural diversity and TA and after accounting for omitted sample bias and endogeneity. Additional analysis suggests that the negative impact of cultural diversity on a firm’s TA is more salient in a firm with strong managerial incentives or in a city that is characterized by more migration. Furthermore, we document that the negative impact of cultural diversity on TA is more pronounced when firms face strong financial constraints or effective internal and external monitoring. |
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| ISSN: | 1573-0697 |
| Contains: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-020-04683-2 |