How Does Big Data in Tax Administration Limited Corporate Earnings Management

The emergence of big data and the informatization of tax administration have had a huge impact on the regulatory model and corporate behavior, but there has been little research on profit manipulation in the process of tax administration. On the premise of transaction cost and tax service theory, this paper analyzes the effectiveness of big data tax administration based on the theory of enterprise profit manipulation, and uses the " Golden Tax Phase III " policy to describe big data tax administration, and tests it as a quasi-natural experiment. Research shows that big data tax administration can reduce the degree of corporate profit manipulation, improve corporate independence, avoid improper related party transactions, improve the information transparency and regulatory efficiency of data sources, reduce corporate institutional transaction costs, and improve tax compliance. It is further found that big data tax administration can play a greater role in enterprises with higher tax avoidance motivation and bad credit rating. This paper demonstrates the research on the economic consequences of digital regulation, and also provides important practical evidence for the government departments to adopt new regulatory methods, improve regulatory efficiency, and deepen the reform of tax methods in the big data environment.