Research Article
Supplier-base Concentration and Corporate Tax Avoidance
@INPROCEEDINGS{10.4108/eai.24-5-2024.2350107, author={Binfa Wang and Rui Ge}, title={Supplier-base Concentration and Corporate Tax Avoidance}, proceedings={Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24--26, 2024, Jinan, China}, publisher={EAI}, proceedings_a={MSEA}, year={2024}, month={10}, keywords={supplier-base concentration; tax avoidance; operational risk}, doi={10.4108/eai.24-5-2024.2350107} }- Binfa Wang
Rui Ge
Year: 2024
Supplier-base Concentration and Corporate Tax Avoidance
MSEA
EAI
DOI: 10.4108/eai.24-5-2024.2350107
Abstract
Despite the intensive interactions between firms and their suppliers, there is a scarcity of studies on the potential impact of suppliers on their customers' tax avoidance strategies. Addressing this gap, our research explores how the supplier-base concentration might affect corporate engagement in tax avoidance. By examining a broad dataset of firms listed in China, we discovered that firms with a more concentrated supplier base tend to engage in less tax avoidance. This finding persists even after controling for various other factors that may affect corporate tax avoidance practices. Our findings enrich the existing literature on tax avoidance.
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