Economic policy uncertainty and corporate tax avoidance: Evidence from China

摘要

This study investigates the influence of economic policy uncertainty (EPU) on corporate tax avoidance (CTA) for Chinese listed firms. We find that EPU significantly and negatively influences CTA. Moreover, state ownership, internal control quality and government subsidy attenuate the negative effect of EPU on CTA, and managerial shareholding and high financial constraint strengthen the negative effect of EPU on CTA.