Research On The Effect Of Tax Credit Rating Disclosure On Stock Liquidity

"People cannot stand without faith,cities without faith will be chaotic,and countries without faith will decline." Credit has become an important pillar of the market economy,and the soul of the market economy is the product of economic development to a certain stage.The market economy is inevitably a credit economy,and the more developed the market economy,the more people are required to be honest and trustworthy.Credit is an important foundation of modern civilization.In October 2014,the State Administration of Taxation issued the Measures for the Administration of Tax Credit(for Trial Implementation),and the tax credit rating system was launched nationwide,which triggered discussions on the disclosure of tax credit ratings in academia and practice.Since the market economy is essentially a credit economy,the legal operation of enterprises and the honest tax payment behavior will have an impact on the capital market.This paper aims to study whether the list of A-grade tax credit enterprises published by the tax authorities improves the performance of enterprises in the capital market.And by what path is it improved?Taking A-share listed companies from 2015 to 2021 as a sample,this paper empirically examines the correlation between tax credit rating and stock liquidity,and the moderating effect of internal control quality on the relationship between tax credit rating and stock liquidity,and the results show that high-quality internal control positively regulates the relationship between tax credit rating and stock liquidity.In addition,this paper takes corporate reputation score and agency cost as intermediary variable,and finds that A-grade companies improve corporate reputation and reduce agency costs,thereby improving stock liquidity.In addition,this paper also studies the impact of tax credit rating on stock liquidity in the heterogeneity of marketization degree and heterogeneity of reputation scenario,and the results show that compared with enterprises with higher reputation,the effect of tax credit rating on improving stock liquidity level is more significant in enterprises with lower reputation.Compared with regions with a higher degree of marketization,the effect of tax credit rating on the improvement of stock liquidity is more significant in regions with a low degree of marketization.This paper enriches the research on tax administration and stock liquidity,and helps taxpayers realize that the disclosure of tax credit ratings can improve the performance of A-rated enterprises in the capital market.Based on the above conclusions,this paper makes the following suggestions: First,enterprises should pay close attention to the issue of tax integrity.Second,disclose the number of tax credit ratings.Third,refine hierarchical management measures.Fourth,build a multi-entity tax credit rating supervision mechanism.Fifth,improve relevant laws.Sixth,strengthen the supervision of media outlets.