Chief Financial officers power, institutional environment, and corporate effective tax rate: Evidence from China

Danlin Pu, Yun Hong, Ming Hsien Hsueh

Research output: Contribution to journalArticle

Abstract

In this study, we investigate how chief financial officers (CFOs) power and institutional environment influence corporate effective tax rates (ETRs). Using a sample of Chinese listed firms from 2004 to 2010, we find that firms with expert power or political power CFOs enjoy a low effective tax rate. Furthermore, CFOs expert power plays a more important function in reducing ETR in regions with a better institutional environment compared to those with less-developed institutions. CFOs political power is the most important factor in reducing ETR in regions with a less developed institutional environment than in those regions with a better institutional environment.

Original languageEnglish
Pages (from-to)S196-S213
JournalEmerging Markets Finance and Trade
Volume51
DOIs
Publication statusPublished - 2015 Jan 30

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China
Institutional environment
Chief financial officer
Effective tax rates
Political power
Factors

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics, Econometrics and Finance(all)

Cite this

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Chief Financial officers power, institutional environment, and corporate effective tax rate : Evidence from China. / Pu, Danlin; Hong, Yun; Hsueh, Ming Hsien.

In: Emerging Markets Finance and Trade, Vol. 51, 30.01.2015, p. S196-S213.

Research output: Contribution to journalArticle

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