| Author: | Chi, Cheng |
| Title: | Tax avoidance and firm value : the role of social trust and regulatory enforcement |
| Advisors: | Su, Nancy (AF) Xu, Xinpeng (AF) |
| Degree: | D.Mgt. |
| Year: | 2025 |
| Subject: | Tax evasion Business enterprises -- Valuation Trust Corporate governance Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | 113 pages : color illustrations |
| Language: | English |
| Abstract: | This thesis examines the relationship between tax avoidance and firm value, emphasizing the roles of social trust and regulatory enforcement pursuant to tax. Amidst debates on the benefits of tax avoidance to shareholders and increasing regulatory scrutiny, the study identifies a non-linear, inverted U-shaped relationship, where moderate tax avoidance enhances firm value, but excessive avoidance diminishes it. Social trust appears to allow firms in high-trust regions to benefit more from tax avoidance before the tipping point leads to lower firm value. Similarly, strong regulatory enforcement defers the tipping point. Weaker institutional factors add nuance to the relationship as the importance of them as moderators diminishes. These findings, validated through robustness tests, contribute to understanding the interplay between tax strategies, social trust, and regulatory enforcement, offering insights for policymakers and corporate leaders on optimizing tax strategies in different institutional contexts. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 9049.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.19 MB | Adobe PDF | View/Open |
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