Using proprietary data obtained from a local tax office in China, we examine the determinants of corporate tax audits and the consequences of those audits. We find that the tax authority is more likely to select a firm for an audit when the firm has a lower effective tax rate, a higher book-tax...

In China, submitting a claim for R&D tax deductions increases the likelihood that a firm will be scrutinized by the tax authorities. We argue that tax aggressive firms are keen to avoid the oversight of the tax authorities and so they are less likely to submit claims for R&D tax deductions...

Exploiting a quasi-natural experiment in China in which some firms become investible to the global market across different periods (i.e., pilot firms), we evaluate the role that stock market liberalization plays in shaping local firms’ incentives to invest in corporate social responsibility...

Capitalizing on a quasi-natural experiment in China where certain investment banks become investible to the global market across different periods, we explore the role that stock market liberalization plays in shaping local analysts' incentives to provide high quality forecasts. In a staggered...

Capitalizing on a quasi-natural experiment in China where some firms become investible to the global market across different times (i.e., pilot firms), we explore the role that stock market liberalization plays in shaping firms' financial reporting practices. In one direction, market...

Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility (ASR) plays in shaping their performance. In one direction, the behavior consistency theory implies that individual auditors exhibiting more social...

Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility plays in shaping their performance. In one direction, behavior consistency theory implies that individual auditors exhibiting more social...

Although forms of address are widely used in textual and other types of disclosure, empirical evidence of their effects is rare. China provides a unique setting in which to test the economic consequences of the forms of address used in audit reports. From 2003 to 2011, about 60% of auditors...