How does the digitalization of tax collection and administration affect corporate investment efficiency? A Quasi-Natural Experiment from ,den Tax Project III

Taking the Golden Tax Project III as a quasi-natual experiment, this rearch uses a multi-period DID technique to investigate the impact of digitalizing tax collection and administration on corporate investment efficiency. Our empirical analysis of Chinese A-share listed companies from 2010 to 2021 revealed that digital tax enforcement could significantly boost corporate investment efficiency, mainly by suppressing overinvestment. The mechanisms investigated include reducing corporate agency conflicts and tightening financing constraints. According to the heterogeneity study, private enterprises, and those that are relatively controlled and have executives without financial backgrounds are more severely impacted by the digitization of tax administration. ,