The Impact of Audit Elements on Tax Avoidance in China

This paper examines the impact of audit factors on corporate tax avoidance in the Chinese context. By selecting a sample of 2,494 Chinese listed firms from the CSMAR database for the period 2011-2020 in the unique Chinese economic context, this paper finds that audit factors have a strong impact on...

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Main Author: Sun, Cheng-zhi
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2022
Online Access:https://eprints.nottingham.ac.uk/67637/
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author Sun, Cheng-zhi
author_facet Sun, Cheng-zhi
author_sort Sun, Cheng-zhi
building Nottingham Research Data Repository
collection Online Access
description This paper examines the impact of audit factors on corporate tax avoidance in the Chinese context. By selecting a sample of 2,494 Chinese listed firms from the CSMAR database for the period 2011-2020 in the unique Chinese economic context, this paper finds that audit factors have a strong impact on tax avoidance. Among them, audit fees and audit opinions have a hindering effect on tax avoidance of Chinese firms, which are negatively related, while audit specialisation and audit rotation are facilitating effects on Chinese firms, which are positively related. In addition, this paper also verifies that ROA, leverage, firm size and corporate cash flow all have significant influences on corporate tax avoidance. The findings of this paper effectively complement the research in the Chinese tax avoidance literature and provide implications for stakeholders and regulators, as well as contributing to both the audit and tax avoidance fields.
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language English
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spelling nottingham-676372023-04-25T13:20:43Z https://eprints.nottingham.ac.uk/67637/ The Impact of Audit Elements on Tax Avoidance in China Sun, Cheng-zhi This paper examines the impact of audit factors on corporate tax avoidance in the Chinese context. By selecting a sample of 2,494 Chinese listed firms from the CSMAR database for the period 2011-2020 in the unique Chinese economic context, this paper finds that audit factors have a strong impact on tax avoidance. Among them, audit fees and audit opinions have a hindering effect on tax avoidance of Chinese firms, which are negatively related, while audit specialisation and audit rotation are facilitating effects on Chinese firms, which are positively related. In addition, this paper also verifies that ROA, leverage, firm size and corporate cash flow all have significant influences on corporate tax avoidance. The findings of this paper effectively complement the research in the Chinese tax avoidance literature and provide implications for stakeholders and regulators, as well as contributing to both the audit and tax avoidance fields. 2022-03-10 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/67637/1/20222982_BUSI4153_2021_22.pdf Sun, Cheng-zhi (2022) The Impact of Audit Elements on Tax Avoidance in China. [Dissertation (University of Nottingham only)]
spellingShingle Sun, Cheng-zhi
The Impact of Audit Elements on Tax Avoidance in China
title The Impact of Audit Elements on Tax Avoidance in China
title_full The Impact of Audit Elements on Tax Avoidance in China
title_fullStr The Impact of Audit Elements on Tax Avoidance in China
title_full_unstemmed The Impact of Audit Elements on Tax Avoidance in China
title_short The Impact of Audit Elements on Tax Avoidance in China
title_sort impact of audit elements on tax avoidance in china
url https://eprints.nottingham.ac.uk/67637/