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Data-driven tax governance: the digital RMB and corporate tax avoidance

Huixiang Zeng et al.

Journal of Accounting Literature2026https://doi.org/10.1108/jal-04-2025-0223article
AJG 3ABDC A
Weight
0.50

Abstract

Purpose Digital currency has become an important topic of global concern, and the digital RMB, as a pilot case of China's legal tender digital currency reform, provides a valuable sample for examining its micro-level tax governance effects. Design/methodology/approach Using a sample of China's A-share listed companies from 2016 to 2022, this study empirically investigates the micro-level tax avoidance governance effects of the digital RMB through a multi-period difference-in-differences (DID) approach. Findings The results reveal that the digital RMB significantly suppresses corporate tax avoidance and increases corporate tax contributions. The digital RMB mitigates tax avoidance through two main channels: the “governance effect,” which reduces agency costs and the “deterrence effect,” which raises corporate operational risk exposure. The tax governance impact of the digital RMB is more prominent in samples with lower information disclosure levels, in state-owned enterprises and in enterprises located in eastern regions. Originality/value This article clarifies the relationship between the digital RMB and corporate tax avoidance, provides governments with policy insights for improving the digital RMB framework and offers a certain perspective for discussions on global digital currency reform.

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https://doi.org/https://doi.org/10.1108/jal-04-2025-0223

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@article{huixiang2026,
  title        = {{Data-driven tax governance: the digital RMB and corporate tax avoidance}},
  author       = {Huixiang Zeng et al.},
  journal      = {Journal of Accounting Literature},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/jal-04-2025-0223},
}

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Data-driven tax governance: the digital RMB and corporate tax avoidance

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.