Tax Enforcement and Corporate Innovation: Evidence from the Tax Administration Information System Reform
We obtained data from the China Stock Market and Accounting Research and Wind databases. We compiled the data on the CTAIS-3 implementation project in each province manually from the official SAT website and news reports. Given that China implemented new accounting standards in 2007, we selected A-share private companies listed in both the Shanghai and Shenzhen stock exchanges from 2007 to 2019 as the initial sample. The sample excludes firms in the finance and insurance industry because their business content and accounting methods differ significantly from those of other industries. We filtered the sample by removing unusual companies, such as special treatment firms, and then deleted the observations with missing values. Finally, we winsorized the continuous variables at the 1st and 99th percentiles to eliminate potential outlier effects. The final sample includes 10,691 firm-year observations.