TY - JOUR
T1 - Do family firms engage in less tax avoidance than non-family firms? The corporate opacity perspective
AU - Lee, Cheng Hsun
AU - Bose, Sudipta
N1 - Funding Information:
We would like to thank reviewers and participants at the 2018 Accounting and Finance Association of Australia and New Zealand (AFAANZ) conference in New Zealand and the 2018 European Accounting Association (EAA) conference for their valuable comments. We also thank Terry Shevlin and Pinghsun Huang for their insightful suggestions. We appreciate the valuable comments from Jeffrey Ng (co-editor) and an anonymous referee. This research was supported in part by receiving funding under Grant No. D107-F2402 from the Headquarters of University Advancement at National Cheng Kung University, sponsored by the Ministry of Education of Taiwan.
Publisher Copyright:
© 2021 Elsevier Ltd
PY - 2021/8
Y1 - 2021/8
N2 - We examine the moderating effect of corporate opacity on the relationship between family firms and tax avoidance. We find, ceteris paribus, that family firms and tax avoidance are negatively associated. However, the negative association is attenuated when corporate opacity increases. Our results indicate that corporate opacity affects firms’ tax avoidance, with this effect stronger for family firms than for non-family firms. We also find that tax avoidance by and corporate opacity of family firms are negatively associated with firm valuation. These results are consistent with the opportunistic perspective that family firms engage in more tax avoidance than non-family firms when corporate opacity is higher.
AB - We examine the moderating effect of corporate opacity on the relationship between family firms and tax avoidance. We find, ceteris paribus, that family firms and tax avoidance are negatively associated. However, the negative association is attenuated when corporate opacity increases. Our results indicate that corporate opacity affects firms’ tax avoidance, with this effect stronger for family firms than for non-family firms. We also find that tax avoidance by and corporate opacity of family firms are negatively associated with firm valuation. These results are consistent with the opportunistic perspective that family firms engage in more tax avoidance than non-family firms when corporate opacity is higher.
UR - http://www.scopus.com/inward/record.url?scp=85107980802&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85107980802&partnerID=8YFLogxK
U2 - 10.1016/j.jcae.2021.100263
DO - 10.1016/j.jcae.2021.100263
M3 - Article
AN - SCOPUS:85107980802
VL - 17
JO - Journal of Contemporary Accounting and Economics
JF - Journal of Contemporary Accounting and Economics
SN - 1815-5669
IS - 2
M1 - 100263
ER -