Employee views of corporate tax aggressiveness in China: The effects of guanxi and audit independence
MetadataShow full item record
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.
Copyright © 2015 School of Taxation and Business Law (Atax), University of New South Wales
Showing items related by title, author, creator and subject.
Fan, Ying Han (2008)This study involves a first attempt to identify Chinese auditors’ values and examines their effects on ethical ideologies and ethical judgments and intentions. A survey methodology is used and the survey instrument includes ...
Rusmin, Rusmin; Scully, Glennda; Tower, Greg (2013)figures. Using a sample of 1,094 transportation firm-year observations before and throughout the global financial crisis (GFC) period of 2006-2009 in seven Asian countries, the purpose of this study is to investigate ...
Scully, Glennda; Woodbine, Gordon; Fan, Ying Han (2012)A major objective of this study is to develop a guanxi scale with two dimensions, favour-seeking guanxi and, for the first time, a rent-seeking guanxi, based on Ang and Leong’s (2000) guanxi scale and Su and Littlefield’s ...