Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence
This study examines the effects of guanxi and audit independence on the corporate tax aggressiveness of Chinese firms. Based on a survey completed by 174 respondents in 2013, we find that two types of guanxi: favour-seeking guanxi and rent-seeking guanxi are significantly associated with ethical jud...
| Main Authors: | , , |
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| Format: | Journal Article |
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University of NSW
2015
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| Online Access: | https://www.business.unsw.edu.au/research-site/publications-site/ejournaloftaxresearch-site/Documents/eJTR_Vol13_No3_2015.pdf http://hdl.handle.net/20.500.11937/44853 |
| _version_ | 1848757120218955776 |
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| author | Taylor, Grantley Fan, Ying Han Tan, Y. |
| author_facet | Taylor, Grantley Fan, Ying Han Tan, Y. |
| author_sort | Taylor, Grantley |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study examines the effects of guanxi and audit independence on the corporate tax aggressiveness of Chinese firms. Based on a survey completed by 174 respondents in 2013, we find that two types of guanxi: favour-seeking guanxi and rent-seeking guanxi are significantly associated with ethical judgments of corporate tax aggressiveness. Perceptions of audit independence in-fact are significantly negatively associated with these ethical judgments, whereas audit independence in-appearance is positively associated with them. Further, significantly positive associations exist between perceptions that tax-aggressive activities are good for the firm and its shareholders and favour-seeking guanxi and between these perceptions and stronger client-auditor relations. This study provides insights into the association between types of guanxi and the propensity of firm management to engage in corporate tax aggressiveness. |
| first_indexed | 2025-11-14T09:23:02Z |
| format | Journal Article |
| id | curtin-20.500.11937-44853 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:23:02Z |
| publishDate | 2015 |
| publisher | University of NSW |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-448532017-01-30T15:16:54Z Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence Taylor, Grantley Fan, Ying Han Tan, Y. This study examines the effects of guanxi and audit independence on the corporate tax aggressiveness of Chinese firms. Based on a survey completed by 174 respondents in 2013, we find that two types of guanxi: favour-seeking guanxi and rent-seeking guanxi are significantly associated with ethical judgments of corporate tax aggressiveness. Perceptions of audit independence in-fact are significantly negatively associated with these ethical judgments, whereas audit independence in-appearance is positively associated with them. Further, significantly positive associations exist between perceptions that tax-aggressive activities are good for the firm and its shareholders and favour-seeking guanxi and between these perceptions and stronger client-auditor relations. This study provides insights into the association between types of guanxi and the propensity of firm management to engage in corporate tax aggressiveness. 2015 Journal Article http://hdl.handle.net/20.500.11937/44853 https://www.business.unsw.edu.au/research-site/publications-site/ejournaloftaxresearch-site/Documents/eJTR_Vol13_No3_2015.pdf University of NSW fulltext |
| spellingShingle | Taylor, Grantley Fan, Ying Han Tan, Y. Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence |
| title | Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence |
| title_full | Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence |
| title_fullStr | Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence |
| title_full_unstemmed | Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence |
| title_short | Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence |
| title_sort | employee views of corporate tax aggressiveness in china: the effects of guanxi and audit independence |
| url | https://www.business.unsw.edu.au/research-site/publications-site/ejournaloftaxresearch-site/Documents/eJTR_Vol13_No3_2015.pdf http://hdl.handle.net/20.500.11937/44853 |