This study investigates the effect of targeted reserve requirement ratio cuts(TRRRCs)on tax avoidance among small and micro enterprises(SMEs)with operating revenues below specific cutoffs in China.Using a regression d...This study investigates the effect of targeted reserve requirement ratio cuts(TRRRCs)on tax avoidance among small and micro enterprises(SMEs)with operating revenues below specific cutoffs in China.Using a regression discontinuity design,we causally show that,by increasing loan availability,TRRRCs significantly alleviate the financial constraints and cash dependence of SMEs and consequently reduce tax avoidance.This is especially the case among firms with lower market power and higher entertainment and travel costs.Our findings provide evidence for the real effect of TRRRCs on corporate tax avoidance and show the inclusive effect of TRRRCs on SMEs.In doing so,we indirectly reveal a rent-seeking channel underlying bank lending,thus offering clear policy implications for regulators.展开更多
Through a systematic analysis of China＇s monetary policy instruments adopted between 2001 and 2010, the author argues that raising required reserve ratios （or RRRs） cannot reduce the overall supply of funds, while ...Through a systematic analysis of China＇s monetary policy instruments adopted between 2001 and 2010, the author argues that raising required reserve ratios （or RRRs） cannot reduce the overall supply of funds, while raising the deposit and loan interest rate expands credit. Compared with the above two approaches, controlling incremental loan scale is more effective. During the 12th Five-Year Plan period （2011-2015）, China should improve its monetary policy system in five aspects： the balance sheet structure of The People＇s Bank of China （PBOC）, the intermediary objective and operation instruments, market orientation of the deposit and loan interest rate, ultimate objective of monetary policies and establishment of a systemframeworkforprudent macrofinancial management.展开更多
基金Funding was provided by National Natural Science Foundation of China(Grant No.71772178).
文摘This study investigates the effect of targeted reserve requirement ratio cuts(TRRRCs)on tax avoidance among small and micro enterprises(SMEs)with operating revenues below specific cutoffs in China.Using a regression discontinuity design,we causally show that,by increasing loan availability,TRRRCs significantly alleviate the financial constraints and cash dependence of SMEs and consequently reduce tax avoidance.This is especially the case among firms with lower market power and higher entertainment and travel costs.Our findings provide evidence for the real effect of TRRRCs on corporate tax avoidance and show the inclusive effect of TRRRCs on SMEs.In doing so,we indirectly reveal a rent-seeking channel underlying bank lending,thus offering clear policy implications for regulators.
文摘Through a systematic analysis of China＇s monetary policy instruments adopted between 2001 and 2010, the author argues that raising required reserve ratios （or RRRs） cannot reduce the overall supply of funds, while raising the deposit and loan interest rate expands credit. Compared with the above two approaches, controlling incremental loan scale is more effective. During the 12th Five-Year Plan period （2011-2015）, China should improve its monetary policy system in five aspects： the balance sheet structure of The People＇s Bank of China （PBOC）, the intermediary objective and operation instruments, market orientation of the deposit and loan interest rate, ultimate objective of monetary policies and establishment of a systemframeworkforprudent macrofinancial management.
