Tax Avoidance Governance Effects of Financial Justice System Innovations -- Empirical Evidence Based on the Pilot Establishment of Financial Courts

In this paper, we study the governance effects of financial courts, an innovative investor judicial protection system, on firms using a sample of listed firms in Shanghai, Shenzhen, and North China from 2013 to 2023. We find that the establishment of financial courts can effectively curb corporate tax avoidance behavior, and the conclusion still holds after a series of robustness tests. The results of this paper confirm the positive significance of financial courts in building the cornerstone of sound capital market development