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Fig 1.

Inquiry process of financial reporting in China’s stock exchanges.

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Fig 1 Expand

Table 1.

Annual sample distribution of comment letters.

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Table 1 Expand

Table 2.

Variables definitions.

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Table 2 Expand

Table 3.

Descriptive statistics of the main variables.

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Table 3 Expand

Table 4.

Tax avoidance and likelihood of receiving tax-related comment letter.

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Table 4 Expand

Table 5.

The effect of tax-related comment letters on subsequent tax avoidance.

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Table 5 Expand

Table 6.

Dynamic effect.

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Table 6 Expand

Table 7.

Covariate balance of PSM sample.

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Table 7 Expand

Fig 2.

Dynamic effect of stagger DID.

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Fig 2 Expand

Fig 3.

Kdensity pscore of sample before and after PSM.

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Fig 4.

Matching result diagram.

The regression results based on PSM samples are shown in Table 8. The coefficient of taxfirm*post is significantly negative in both Column(1) and Column(2), indicating that the conclusions of baseline still hold after controlling the difference of treated and controlled groups.

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Table 8.

PSM sample regression results.

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Table 8 Expand

Fig 5.

Placebo test.

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Table 9.

Effect of tax-related comment letter on ETR and cash ETR.

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Table 9 Expand

Table 10.

Controls the impact of tax policy impacts.

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Table 10 Expand

Table 11.

The impact of tax-related comment letter text information.

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Table 11 Expand

Table 12.

Impact of revising accounting information.

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Table 12 Expand

Table 13.

Effect of tax-related comment letters on firms’ tax avoidance among different ownership.

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Table 14.

The impact of political connections.

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Table 15.

The intensity of tax collection and administration.

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Table 15 Expand