Does the Tax Stickiness Exist?

  • Wei YangEmail author
  • Shengdao Gan
  • Hong Wang
  • Xinyun Liu
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 1002)


In the macro economy, the growth rate of tax revenue is consistently higher than the GDP growth rate, which is the thought source of this paper. Is the tax payment performance of micro businesses consistent with this macroeconomic phenomenon? For this reason, this article puts forward the concept of corporate tax stickiness, while exploring its existence, analyzing its theoretical basis from different angles. Then we analyze the existence of tax stickiness, its time trend and influencing factors, and put forward assumptions and use the A-share listed companies’ annual financial data from 2008 to 2015 to launch a series of empirical tests. It is found that the tax stickiness of listed companies in China does exist and tends to weaken with time extension. The macro economic growth effect was not significant, while the enterprise’s capital intensity has an enhanced influence on tax stickiness, and asset-liability ratio can relief the tax stickiness. However, in different length of time span, the influence of each factor is different, and the effect of comprehensive on tax stickiness is unstable. This paper is only a preliminary study, there are some limitations and a ground of research space for further exploring and improvement.


Corporate tax Stickiness Listed companies Financial data processing 



This paper is supported by China National Social Science Foundation Project (17BJY186): Research on the linkage and coordination of tax system reform, tax distribution system and tax burden pressure of enterprises after replacing business tax with value-added tax.


  1. 1.
    China Development Publishing House (2017) Performance evaluation report of chinese listed companies in 2017Google Scholar
  2. 2.
    Deng, Z.J., Deng, L.P.: Tax neutrality, tax regulation and industrial policy. Fisc. Res. 29(9), 32–35 (1995)Google Scholar
  3. 3.
    Fang, J.X.: Is there stickiness in executive compensation of listed companies in china? Econ. Res. 2009(3), 110–124 (2009)Google Scholar
  4. 4.
    Gao, P.Y.: The mystery of sustainable and high-speed tax growth in china. Econ. Res. 2006(12), 13–23 (2006)Google Scholar
  5. 5.
    Graham, J.R., Mills, L.F.: Using tax return data to simulate corporate marginal tax rates. J. Account. Econ. 46(2), 366–388 (2007)Google Scholar
  6. 6.
    Liang, S.K.: Media attention, information environment and corporate cost stickiness. China’s Ind. Econ. 2017(2), 154–173 (2017)Google Scholar
  7. 7.
    Liu, J., Feng, L.: Fiscal centralization, government control and corporate tax burden: Evidence from china. China J. Account. Stud. 1(3–4), 168–189 (2013)CrossRefGoogle Scholar
  8. 8.
    Lu, B.Y.: Guo QW (2011) The source of rapid tax growth in china: Explanation under the framework of tax capacity and tax effort. Chin. Soc. Sci. 2, 76–90 (2011)Google Scholar
  9. 9.
    Anderson, M., Banker, R.: Are selling, general, and distribution costs sticky? J. Account. Res. 41(1), 47–63 (2003)CrossRefGoogle Scholar
  10. 10.
    Li, L., Wang, C.: Tax burden, innovation ability and enterprise upgrading: Empirical evidence from new third board listed companies. Econ. Res. 11, 119–133 (2017)Google Scholar
  11. 11.
    Porcano, T.M.: Corporate tax rates: Progressive, proportional, or regressive. J. Am. Tax. Assoc. 1986(7), 17–31 (1986)Google Scholar
  12. 12.
    Kong, Y.: Cost stickiness research: Empirical evidence from chinese listed companies. Account. Res. 2017(11), 58–65 (2017)Google Scholar
  13. 13.
    Pan, X.Z.: New enterprise income tax law and enterprise tax and fee burden: Based on the microscopic perspective of listed companies. Financ. Trade Res. 24(5), 113–119 (2013)Google Scholar
  14. 14.
    Qin, H.N., Cheng, H.W., Peng, Q.: Accounting-tax differences and firm tax burden stickness. Bus. Account. 3, 9–12 (2018)Google Scholar
  15. 15.
    Ren, Y.: The relationship between tax revenue and business income: Based on the annual report data of listed companies. J. Grad. Stud. Cent. South Univ. Financ., Econ. Law 2011(6), 43–48 (2011)Google Scholar
  16. 16.
    Shevlin, T.: Taxes and off-balance-sheet financing: Research and development limited partnerships. Account. Rev. 62(3), 480–509 (1987)Google Scholar
  17. 17.
    Stickney, C.P., Mcgee, V.E.: Effective corporate tax rates the effect of size, capital intensity, leverage, and other factors. J. Account. Public Policy 1(2), 125–152 (1982)CrossRefGoogle Scholar
  18. 18.
    Wang, C.B., Sun, Jiang, G.: Viscosity study of enterprise tax expenditure: From the perspective of government collection and management. Accounting Research 5, 28–35 (2018)Google Scholar
  19. 19.
    Wilkie, P.: Corporate average effective tax rates and inferences about relative tax preferences. J. Am. Tax. Assoc. 10(1), 75–88 (1988)Google Scholar
  20. 20.
    Xu, L.: Research on the viscous behavior of R&D expenditure stickiness of enterprises. Southeast University, Technical report (2014)Google Scholar
  21. 21.
    Cong, Y., Zhou, Y. J.: The characteristics, effects and policy suggestions of “tax burden rigidity” in china’s current tax system: an empirical analysis based on the data of listed manufacturing companies from 2013 to 2016. South. Econ. 2017(6), 53–63 (2017)Google Scholar
  22. 22.
    Zheng, S., L, Hao: Cost sticky behavior of chinese listed companies. Econ. Res. 12, 26–34 (2004)Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Business SchoolSichuan UniversityChengduPeople’s Republic of China
  2. 2.Beijing Normal University-Hong Kong Baptist University United International CollegeZhuhaiPeople’s Republic of China

Personalised recommendations