Do Family Firms Engage in Less Tax Avoidance than Non-Family Firms? The Corporate Opacity Perspective

Title: Do Family Firms Engage in Less Tax Avoidance than Non-Family Firms? The Corporate Opacity Perspective
Creator: Lee, Cheng-Hsun; Bose, Sudipta
Relation: Journal of Contemporary Accounting and Economics Vol. 17, Issue 2, no. 100263, p. 1-22
Publisher Link: http://dx.doi.org/10.1016/j.jcae.2021.100263
Publisher: Elsevier
Resource Type: journal article
Date: 2021
Description: We examine the moderating effect of corporate opacity on the relationship between family firms and tax avoidance. We find that family firms and tax avoidance are negatively associated, ceteris paribus. However, the negative association is attenuated when corporate opacity increases. The results indicate that corporate opacity affects firms’ tax avoidance with a stronger impact on family firms than on non-family firms. We also find that firm valuation is negatively associated with tax avoidance for family firms, with this consistent in its indication that rent-seeking is signaled by family firms’ tax avoidance. These results are consistent from the opportunistic perspective that family firms engage in more tax avoidance than non-family firms when corporate opacity is higher.
Subject: corporate opacity; tax avoidance; family firms; type II agency conflict; SDG 17; Sustainable Development Goals
Identifier: http://hdl.handle.net/1959.13/1477752
Identifier: uon:50029
Identifier: ISSN:1815-5669
Language: eng
Reviewed

Collections

Goal 17: Partnerships for the Goals

		Thumbnail	File	Description	Size	Format