How does human capital in the public sector affect tax uncertainty?

Weiyi  Hou; Kunpeng  Sun

doi:10.18282/hrms.v6i2.3486

Weiyi Hou School of Public Finance and Taxation, Central University of Finance and Economics, Beijing 100081, China
Kunpeng Sun School of Public Finance and Taxation, Central University of Finance and Economics, Beijing 100081, China

Ariticle ID: 3486

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DOI: https://doi.org/10.18282/hrms.v6i2.3486

Keywords: human capital; tax uncertainty; corporate governance; tax inspectors

Abstract

This paper provides new evidence on human resources management within the public sector. We explore the impact and mechanisms of the education and skills of tax inspectors on tax uncertainty using data from A-share-listed companies from 2009 to 2016. Our findings show that tax uncertainty is negatively correlated with the increase in human capital in the tax inspection bureau. That is, tax inspectors with higher levels of education and those who are certified tax agents help reduce tax uncertainty. Further analysis demonstrates that the impact of tax inspectors on tax uncertainty is most pronounced within large-scale and long-established firms.

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