Luo, Jingbo; Guo, Chun - In: China journal of accounting research : CJAR 16 (2023) 3, pp. 1-24
This study investigates the effect of flexible tax enforcement on firms’ excess goodwill using unique manually collected data on taxpaying credit rating in China from 2014 to 2021. We document that A-rated taxpayer firms have less excess goodwill; A-rated firms reduce excess goodwill by 0.005...