A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies
A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies
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DOI：
10.3390/su11092639
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发表时间：
2019-05
期刊：
影响因子：
3.9
通讯作者：
Junjian Gu
中科院分区：
文献类型：
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作者：
Junjian Gu
本研究利用日本的外商直接投资（FDI）数据，探讨了海外投资在长距离跨国东道国可能存在的风险。我们预计，跨国距离的增加将通过增加经济、政治、行政、文化、人口、知识和地理视角的差异，与不太可持续的税收政策相关，从而增强税收侵略性的动机和盈余管理的可能性。与我们的预期一致，我们发现跨国距离越远的企业越不可能采取可持续的税收政策。经过一些强有力的测试，我们的主要发现没有改变。在进一步的分析中，我们发现当公司在避税天堂国家投资或拥有高比例的外国所有权时，上述关系被削弱，而当公司满足盈利基准时，上述关系得到加强。总体而言，我们的研究结果表明，东道国与母国之间跨国距离增加的一个风险是税收政策的可持续性较差。
This study explores a possible risk of overseas investment in long cross-national distance host countries using the foreign direct investment (FDI) data in Japan. We expect that increasing cross-national distance would relate to the less sustainable tax policies by increasing the differences in economic, political, administrative, cultural, demographic, knowledge, and geographic perspectives, which enhance the motivation of tax aggressiveness and the likelihood of earnings management. Consistent with our expectations, we find that firms with longer cross-national distance are less likely to adopt sustainable tax policies. After some robust tests, our main findings remain unchanged. In additional analysis, we find the above relation is weakened when firms invest in a tax-haven country or have a high proportion of foreign ownership, while it is strengthened when firms meet an earnings benchmark. Overall, our results suggest the one risk of increasing cross-national distance between host country and home country is less sustainable tax policies.