EFAG Seminar with Dr. Haiyan Jiang (Macquarie University Business School)

Dark under the Lamp: Initial Public Offerings and Tax Avoidance among Local Firms 

Abstract

In our study, we explore the impact of resource constraints on tax authorities and how this influences corporate tax avoidance. By examining Chinese Initial Public Offerings (IPOs) as a source of sudden, increased workload and administrative strain on local tax bureaus, we discover a rise in tax avoidance among firms located in the same district as the IPO firm. Our main findings remain solid through a series of sensitivity tests. The robustness of these results is further supported by cross-sectional analyses, mechanism tests, and insights gained from semi-structured interviews with tax officials. Overall, our research indicates that when tax authorities face unexpected resource constraints, the quality of their oversight is likely to diminish, leading to increased tax avoidance among local firms.

About the speaker

Dr. Haiyan Jiang is an Associate Professor in Accounting at Macquarie University Business School. Haiyan specializes in international accounting research in the areas of financial reporting quality, capital markets, and governance issues in Accounting and Auditing. She also focuses on the effect of changing regulations and the unique institutional settings of different countries on corporate reporting, information quality, and auditing. Haiyan has published in top tier accounting journals, including Journal of Business Finance & Accounting, Accounting Horizons, Journal of International Accounting Research, Abacus, European Accounting Review, and The British Accounting Review. She has received a few international research awards and grants.

Haiyan is passionate about and experienced with higher degree research student supervision. Currently, she serves on the editorial boards of several international accounting journals. Prior to Macquarie University, Haiyan has taught at several universities in New Zealand and was a practitioner in the industry before becoming a full-time academic.