The Effect of Corporate Tax Rates on Financial Leverage: Evidence From China’s 2015 Deleveraging Program

Li Huang, Oliver Zhen Li, Hang Liu, Chenkai Ni, Antai College of Economics and Management, Shanghai Jiao Tong University, NUS Business School, National University of Singapore, School of Accountancy, Dongbei University of Finance and Economics, School of Management, Fudan University

Journal of Accounting, Auditing & Finance

Published online on June 15, 2026

Abstract

Journal of Accounting, Auditing & Finance, Ahead of Print.
With a surge in debt due to a fiscal stimulus after 2008, the Chinese government rolled out a “deleveraging” program in 2015, which, through tightening monetary policies, restricting credit flows, and regulating shadow banks, significantly increased firms’...