The Impact of Institutional Cross‐ownership on Corporate Tax Avoidance: Evidence from Chinese Listed Firms

He Xiao and Jianqun Xi

Australian Accounting Review, 2023, vol. 33, issue 1, 86-105

Abstract: This study investigates the relationship between institutional cross‐ownership and corporate tax avoidance in Chinese listed firms. Our findings indicate that the tax avoidance aggressiveness of Chinese listed firms could be significantly motivated by institutional cross‐ownership. This finding is robust to endogeneity tests, namely, propensity score matching estimation, two‐stage least squares regression, generalised method of moments test, and a falsification concern. Further, this positive relationship between institutional cross‐ownership and tax avoidance is more pronounced for listed firms with greater managerial ability and those with higher auditor industry expertise. Finally, such a relationship is more obvious for cross‐owners within the same industry, but only significant for independent cross‐owners, non‐state‐owned enterprises and firms within a less competitive industry. All main findings are robust to various robustness tests.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/auar.12386

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ausact:v:33:y:2023:i:1:p:86-105

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1035-6908

Access Statistics for this article

Australian Accounting Review is currently edited by Linda M. English

More articles in Australian Accounting Review from CPA Australia
Bibliographic data for series maintained by Wiley Content Delivery ().