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Rhetorical Nationalism and Corporate Tax Avoidance: Insights from China

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  • Kazakis, Pantelis

Abstract

This study investigates the unexplored nexus between rhetorical nationalism and corporate tax avoidance. Analyzing Chinese firms from 2010 to 2022, it shows that companies with pronounced nationalistic rhetoric are significantly more prone to engage in tax avoidance. This finding highlights the profound impact of nationalistic sentiments on corporate financial strategies. The result holds through an instrumental variables approach, with an even stronger effect observed among state-owned enterprises. This research offers insights for policymakers and scholars interested in the intersection of nationalism and corporate behavior, paving the way for those looking to understand the drivers of tax avoidance.

Suggested Citation

  • Kazakis, Pantelis, 2024. "Rhetorical Nationalism and Corporate Tax Avoidance: Insights from China," MPRA Paper 121633, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121633
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    File URL: https://mpra.ub.uni-muenchen.de/121633/1/MPRA_paper_121633.pdf
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    References listed on IDEAS

    as
    1. Christina Lubinski & R. Daniel Wadhwani, 2020. "Geopolitical jockeying: Economic nationalism and multinational strategy in historical perspective," Strategic Management Journal, Wiley Blackwell, vol. 41(3), pages 400-421, March.
    2. Xiaohuan Lan & Ben G. Li, 2015. "The Economics of Nationalism," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 294-325, May.
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    More about this item

    Keywords

    rhetorical nationalism; tax avoidance; China;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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