Government Procurement and Corporate Tax Avoidance:Political Pressure or Supervisory Governance?
Does the supervision and governance role inherent in the government procurement process inhibit suppliers'tax avoidance activities(i.e.,the"supervisory governance hypothesis")?Based on a sample of A-share listed companies from 2015 to 2019,this study finds that companies re-ceiving government procurement contracts tend to reduce tax avoidance,regardless of the procurement amount.Moreover,the negative impact of govem-ment procurement on tax avoidance is more pronounced in cases where procurement is conducted through public bidding and for suppliers who win con-tracts individually.Mechanism analysis reveals that government procurement plays a supervisory and governance role in corporate tax avoidance by enhan-cing internal corporate governance and strengthening external oversight.These findings extend the research on government procurement and corporate tax a-voidance,providing direct empirical evidence for improving government procurement systems.
Government ProcurementCorporate Tax AvoidanceSupervisory Governance HypothesisPolitical Cost Hypothesis
万方数据
维普
