Research Article
State and Local Taxes Merger and Enterprise Rent-Seeking: Empirical Evidence Based on Differences-In-Differences
@INPROCEEDINGS{10.4108/eai.18-11-2022.2326844, author={Zhixin Yuan}, title={State and Local Taxes Merger and Enterprise Rent-Seeking: Empirical Evidence Based on Differences-In-Differences}, proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China}, publisher={EAI}, proceedings_a={ICEMME}, year={2023}, month={2}, keywords={state and local taxes merger; rent-seeking; differences-in-differences}, doi={10.4108/eai.18-11-2022.2326844} }- Zhixin Yuan
Year: 2023
State and Local Taxes Merger and Enterprise Rent-Seeking: Empirical Evidence Based on Differences-In-Differences
ICEMME
EAI
DOI: 10.4108/eai.18-11-2022.2326844
Abstract
The merger of state and local taxes is a national reform of the tax collection and management mechanism, which improves China's taxation mechanism and the taxation environment further purified. With the help of this quasi-natural experiment, this paper selects A-share listed enterprises from 2015-2020 and explores the impact of the merger of state and local taxes on corporate rent-seeking by using the DID method. It is found that the merger of state and local taxes attenuates the rent-seeking behavior and reduces the excess administrative expenses of enterprises. Meanwhile, the negative effect of policy on rent-seeking behavior is more significant in private enterprises and enterprises in regions with high marketization. The above findings provide experiences and insights for the governance of enterprises by the reform of taxation mechanism in China.