Abstract
ABSTRACT This paper examines the effect of state-owned equity participation on the tax burdens of non-state-owned enterprises. Using Chinese-listed non-SOEs from 2009 to 2022 as the sample, we find that the participation of state-owned equity in non-SOEs significantly reduces tax burdens. This effect is more pronounced in firms with local state-owned shareholders, higher involvement of state-owned equity participation, and directors appointed by state-owned shareholders. Increasing tax incentives and weaker tax enforcement are two potential channels. Our study provides empirical evidence for understanding how the participation of state-owned equity in non-SOEs shapes corporate tax burdens through the political resource effect.
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