Export and corporate tax avoidance

doi:10.16511/j.cnki.qhdxxb.2017.25.020

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Abstract The Asian financial crisis in 1997 is used as a natural test of how an exogenous exchange rate shock impacts corporate tax avoidance. This paper constructs a firm level exchange rate shock model from export destination information in the 1995 industry survey. An empirical analysis shows that firms whose export destinations experience greater currency depreciation have slower export growth and stronger incentives to engage in tax avoidance. This paper also demonstrates that weaker supervision induced by exporting to poor countries motivates firms to avoid income taxes.

Keywords exporting exchange rate tax avoidance

ZTFLH:

F746

Issue Date: 15 June 2017

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	WANG Rui
	LU Yao
	SHI Xinzheng

Cite this article:

WANG Rui,LU Yao,SHI Xinzheng. Export and corporate tax avoidance[J]. Journal of Tsinghua University(Science and Technology), 2017, 57(6): 667-672.

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http://jst.tsinghuajournals.com/EN/10.16511/j.cnki.qhdxxb.2017.25.020 OR http://jst.tsinghuajournals.com/EN/Y2017/V57/I6/667

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