Governance or reputation? Flexible tax enforcement and excess goodwill: Evidence from the taxpaying credit rating system in China

Brammer, 2015, Corporate reputation and philanthropy: An empirical analysis, J. Bus. Ethics, 61, 29, 10.1007/s10551-005-7443-4 Bundy, 2021, Reputations in flux: How a firm defends its multiple reputations in response to different violations, Strateg. Manag. J., 42, 1109, 10.1002/smj.3276 Cai, 2011, Eat, drink, firms, government: An investigation of corruption from the entertainment and travel costs of Chinese firms, J. Law Econ., 54, 55, 10.1086/651201 Chen, 2015, Do analysts matter for governance? Evidence from natural experiments, J. Financ. Econ., 115, 383, 10.1016/j.jfineco.2014.10.002 Chen, 2018, The effect of tax-motivated income shifting on information asymmetry, Rev. Acc. Stud., 23, 958, 10.1007/s11142-018-9439-1 Chen, 2018, Incorrect inferences when using residuals as dependent variables, J. Account. Res., 56, 751, 10.1111/1475-679X.12195 Chen, 2019, Media coverage of corporate taxes, Account. Rev., 94, 83, 10.2308/accr-52342 Chung, 2021, CEO overconfidence and the timeliness of goodwill impairments, Account. Rev., 96, 221, 10.2308/TAR-2016-0555 Dai, 2015, The governance effect of the media's news dissemination role: Evidence from insider trading, J. Account. Res., 53, 331, 10.1111/1475-679X.12073 Davis, 2003, Social behaviors, enforcement, and tax compliance dynamics, Account. Rev., 78, 39, 10.2308/accr.2003.78.1.39 Desai, 2006, Corporate tax avoidance and high-powered incentives, J. Financ. Econ., 79, 145, 10.1016/j.jfineco.2005.02.002 Desai, 2007, Theft and taxes, J. Financ. Econ., 84, 591, 10.1016/j.jfineco.2006.05.005 Dougal, 2015, Urban vibrancy and corporate growth, J. Financ., 70, 163, 10.1111/jofi.12215 Du, 2011, Study on the connotation and recognition of goodwill, Accounting Research, 1, 11 Dyck, 2008, The corporate governance role of the media: Evidence from Russia, J. Financ., 63, 1093, 10.1111/j.1540-6261.2008.01353.x Dyck, 2004, Private benefits of control: An international comparison, J. Financ., 59, 537, 10.1111/j.1540-6261.2004.00642.x EL Ghoul, 2011, The Role of IRS monitoring in equity pricing in public firms, Contemp. Account. Res., 28, 643, 10.1111/j.1911-3846.2011.01065.x Fu, 2015, Does peer effect affect the goodwill: Empirical evidence from high-premium M&A on the GEM, China Soft Science, 11, 94 Gallemore, 2020, Corporate tax enforcement externalities and the banking sector, J. Account. Res., 58, 1117, 10.1111/1475-679X.12334 Glaum, 2018, Goodwill impairment: The effects of public enforcement and monitoring by institutional investors, Account. Rev., 93, 149, 10.2308/accr-52006 Guay, 2019, Tax aggressiveness and corporate transparency, Account. Rev., 94, 45, 10.2308/accr-52130 Guo, 2019, Firms’ innovation strategy under the shadow of analyst coverage, J. Financ. Econ., 131, 456, 10.1016/j.jfineco.2018.08.005 Haw, 2004, Ultimate ownership, income management, and legal and extra-legal institutions, J. Account. Res., 42, 423, 10.1111/j.1475-679X.2004.00144.x Hogarth, 2018, Corporate philanthropy, reputation risk management and shareholder value: A study of Australian corporate giving, J. Bus. Ethics, 151, 375, 10.1007/s10551-016-3205-8 Jensen, 1986, Agency costs of free cash flow, corporate finance, and takeovers, Am. Econ. Rev., 76, 323 Jian, 2011, Does CEO reputation matter for capital investments?, Finance, 17, 929 Jin, 2022, Tax enforcement and corporate donations: evidence from Chinese ‘Golden Tax Phase III’, China Journal of Accounting Studies, 1–23 Johnson, 1998, Is goodwill an asset?, Account. Horiz., 12, 293 Kaplan, 2022, What is CEO overconfidence? Evidence from executive assessments, J. Financ. Econ., 145, 409, 10.1016/j.jfineco.2021.09.023 Kelchtermans, 2020, The role of peer effects in firms’ usage of R&D tax exemptions, J. Bus. Res., 108, 74, 10.1016/j.jbusres.2019.09.059 Kerr, 2019, The value relevance of taxes: International evidence on the proxy for profitability role of tax surprise, J. Account. Econ., 67, 297, 10.1016/j.jacceco.2018.10.001 Li, 2011, Causes and consequences of goodwill impairment losses, Rev. Acc. Stud., 16, 745, 10.1007/s11142-011-9167-2 Li, 2017, Has goodwill accounting gone bad?, Rev. Acc. Stud., 22, 964, 10.1007/s11142-017-9401-7 Lieberman, 2006, Why do firms imitate each other, Acad. Manag. Rev., 31, 366, 10.5465/amr.2006.20208686 Luo, 2018, Winning us with trifles: Adverse selection in the use of philanthropy as insurance, Strateg. Manag. J., 39, 2591, 10.1002/smj.2935 Luo, 2011, Bank ownership and executive perquisites: New evidence from an emerging market, Finance, 17, 352 Malmendier, 2008, Who makes acquisitions? CEO overconfidence and the market’s reaction, J. Financ. Econ., 89, 20, 10.1016/j.jfineco.2007.07.002 Mescall, 2012, Do IRS audits deter corporate tax avoidance?, Account. Rev., 87, 1603, 10.2308/accr-50187 Milbourn, 2003, CEO reputation and stock-based compensation, J. Financ. Econ., 68, 233, 10.1016/S0304-405X(03)00066-7 Mironov, 2013, Taxes, theft, and firm performance, J. Financ., 68, 1441, 10.1111/jofi.12026 Ramanna, 2008, The implications of unverifiable fair-value accounting: Evidence from the political economy of goodwill accounting, Journal of Accounting & Economic, 45, 253, 10.1016/j.jacceco.2007.11.006 Shevlin, 2014, Incentives for Tax Planning and Avoidance: Evidence from the field, Account. Rev., 89, 991, 10.2308/accr-50678 Stevo, 2021, The role of procedural rationality in debiasing acquisition decisions of overconfident CEOs, Strateg. Manag. J., 42, 1696, 10.1002/smj.3319 Sun, 2019, Can flexible tax enforcement ease corporate financing constraints: Evidence from a natural experiment on tax-paying credit rating disclosure, China Industrial Economics, 3, 81 Tao, 2021, Tax credit evaluation and audit pricing, Auditing Research, 6, 90 Wei, 2019, Does excess goodwill become the burden of corporate operation: Explanation from the perspective of product market competitiveness, China Industrial Economics, 11, 174 Xu, 2014, Excess perks and stock price crash risk: Evidence from China, Finance, 25, 419 Xu, 2011, Tax enforcement as a corporate governance mechanism: Empirical evidence from China, Corp. Gov., 19, 25, 10.1111/j.1467-8683.2010.00831.x Yost, 2022, Does tax enforcement deter managers’ self-dealing?, J. Account. Econ., 101512 Yu, 2022, Tax credit rating and corporate innovation decisions, China J. Account. Res., 15