Biodiversity risks and corporate tax avoidance: Based on a supply chain perspective

This study examines the relationship between biodiversity risks and corporate tax avoidance from a supply chain perspective. Using data on Chinese A-share listed firms from 2008 to 2022, we find that biodiversity risks are positively associated with tax avoidance. Further analyses show that biodiversity risks exhibit a significantly negative correlation with trade credit from suppliers and supply chain stability, which are closely related to higher tax avoidance. Moreover, higher credit ratings and corporate social responsibility performance weaken this association. Overall, this study enhances the understanding of the association between biodiversity risks and corporate tax avoidance.