- Title
- Mixed-ownership structure, non-state-blockholder coalition, and tax avoidance
- Creator
- Long, Wenbin; Wu, Huiying; Li, Lidan; Ying, Sammy Xiaoyan; Li, Sihai
- Relation
- International Review of Financial Analysis Vol. 91, Issue January 2024, no. 102988
- Publisher Link
- http://dx.doi.org/10.1016/j.irfa.2023.102988
- Publisher
- Elsevier
- Resource Type
- journal article
- Date
- 2024
- Description
- This study examines the relationship between a coalition of non-state blockholders and corporate tax avoidance in a context in which state and non-state ownership coexist and the ownership structure is concentrated. Our results show that the dominance of non-state blockholders is positively associated with corporate tax avoidance and that the relationship is weakened by the state being the ultimate controller. Further analyses show that the relationship between non-state blockholder dominance and tax avoidance is weakened by the increased number of and greater heterogeneity among non-state blockholders. Moreover, the moderating effect of the state as the ultimate controller is more pronounced when there are fewer layers in the pyramidal state-shareholding structure and when the local government is the ultimate controller. In addition, we find that a tightening of regional tax enforcement efforts and the implementation of a 2007 tax reform weaken this relationship. Altogether, our results suggest that the collective power of non-state blockholder coalitions and the control strength of the state ultimate controller interact to influence corporate tax strategies.
- Subject
- tax avoidance; ownership structure; blockholder coalition; ultimate controller; SDG 17; Sustainable Development Goals
- Identifier
- http://hdl.handle.net/1959.13/1497783
- Identifier
- uon:54440
- Identifier
- ISSN:1057-5219
- Language
- eng
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