IDEAS home Printed from https://ideas.repec.org/a/eme/parpps/par-12-2023-0180.html
   My bibliography  Save this article

Collusion or supervision? Between auditor and audit firm – tax planning’s perspective

Author

Listed:
  • Wen-Jye Hung
  • Pei-Gi Shu
  • Yi-Yin Ruan
  • Yamin Wang

Abstract

Purpose - This study aims to investigate the impact of auditor industry specialization (AIS) on clients’ tax planning at the audit firm level and individual auditor level, respectively. Design/methodology/approach - The study’s sample consists of 44,637 firm-year observations of Chinese firms listed on the Shenzhen and Shanghai Stock Exchanges during the period from 2002–2020. The data are collected from theTaiwan Economic Journal. Panel regression is used to test hypotheses. Additionally, a two-stage least squares model is used to address concerns about possible endogeneity. Findings - The relationship between tax planning and AIS is significantly positive at the audit firm level, while it is significantly negative at the individual auditor level. Originality/value - The authors use manually collected data to investigate the distinct impacts of two AIS metrics on tax planning: the number of clients and the scale of clients.

Suggested Citation

  • Wen-Jye Hung & Pei-Gi Shu & Yi-Yin Ruan & Yamin Wang, 2024. "Collusion or supervision? Between auditor and audit firm – tax planning’s perspective," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 36(5), pages 509-526, October.
    • Handle: RePEc:eme:parpps:par-12-2023-0180
    DOI: 10.1108/PAR-12-2023-0180
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/PAR-12-2023-0180/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/PAR-12-2023-0180/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/PAR-12-2023-0180?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Auditor industry specialization; Tax planning; Individual auditor; Audit firm; H26; M42;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:parpps:par-12-2023-0180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.