Academic Journal of Business & Management, 2025, 7(8); doi: 10.25236/AJBM.2025.070811.
Ruishu Liu, Tingting Zeng, Cong Wang
Business School, University of Shanghai for Science and Technology, Shanghai, 200093, China
This study is based on 530 observations from 53 listed construction companies in A-shares from 2014 to 2023, and it empirically analyzes the factors influencing tax compliance among construction firms. The findings reveal that operating profit margin, net profit growth rate, and total asset turnover are significantly positively correlated with tax compliance. Specifically, for every one-unit increase in operating profit margin, tax compliance increases by 59.4%. On the other hand, the debt-to-asset ratio, total asset size, and cost of main business operations exhibit a negative correlation with tax compliance. This suggests that highly leveraged companies have a stronger tax avoidance motive, while larger firms are more likely to employ tax planning strategies to reduce their tax burden. The heterogeneity analysis indicates that the profitability of non-state-owned enterprises has a significantly greater positive effect on tax compliance than that of state-owned enterprises. It is recommended that construction firms optimize their financial structures, and that tax authorities implement differentiated supervision, focusing on tax audits for highly leveraged and large-scale enterprises. Additionally, enhancing inter-departmental coordination is essential to improve tax administration efficiency.
Construction Enterprises, Tax Compliance, Empirical Analysis, Influencing Factors, Ownership Structure
Ruishu Liu, Tingting Zeng, Cong Wang. Analysis of Factors Influencing Tax Compliance in Construction Enterprises. Academic Journal of Business & Management (2025), Vol. 7, Issue 8: 83-88. https://doi.org/10.25236/AJBM.2025.070811.
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