Tax risk factors and consequence in China

Published: 09-06-2020| Version 1 | DOI: 10.17632/8m4pfz2nym.1
Contributor:
Wanyi Chen

Description

The main financial data comes from the CSMAR and WIND database. The use of financial derivatives of listed companies is obtained from the annual report of listed companies through Python software. All the A-share listed companies of Shanghai Stock Exchange and Shenzhen Stock Exchange from 2008 to 2016 were selected as initial samples, which were then screened based on the following conditions. First, excluding companies whose denominator is negative for the formula for calculating the actual tax rate during the sample period. Second, excluding companies with actual tax rates greater than 1 or less than 0 to avoid the impact of outliers. Third, excluding special treatment (ST) companies and financial industry companies to avoid the impact of special companies and special industries. Fourth, excluding samples missing values for other data required for regression. Finally, 13,765 companies’ annual observations were obtained. In order to eliminate the influence of outliers, the continuous variables in the model were tailed at 1% and 99% levels.

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