Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/the-impact-of-institutional-cross-ownership-on-corporate-tax-avoidance-8piA3typAQ
References (96)
-
Tao Chen, Huiyan Dong, Chen Lin (2019)
Institutional Shareholders and Corporate Social ResponsibilityCorporate Finance: Governance
-
C. Karuna (2007)
Industry product market competition and managerial incentivesJournal of Accounting and Economics, 43
-
Kimberly Dunn, Brian Mayhew (2004)
Audit Firm Industry Specialization and Client Disclosure QualityReview of Accounting Studies, 9
-
John Phillips (2003)
Corporate Tax‐Planning Effectiveness: The Role of Compensation‐Based IncentivesThe Accounting Review, 78
-
Y. Jiang, Haitao Zheng, Ran Wang (2020)
The effect of institutional ownership on listed companies’ tax avoidance strategiesApplied Economics, 53
-
S. Balsam, J. Krishnan, J. Yang (2003)
Auditor Industry Specialization and Earnings QualityEar and Hearing, 22
-
Anup Agrawal, G. Mandelker (1990)
Large Shareholders and the Monitoring of Managers: The Case of Antitakeover Charter AmendmentsJournal of Financial and Quantitative Analysis, 25
-
Bradley Blaylock, T. Shevlin, R. Wilson (2012)
Tax Avoidance, Large Positive Temporary Book-Tax Differences, and Earnings PersistenceThe Accounting Review, 87
-
J. Graham, Michelle Hanlon, T. Shevlin, Nemit Shroff (2013)
Incentives for Tax Planning and Avoidance: Evidence from the FieldAccounting
-
Utpal Bhattacharya, H. Daouk (2002)
The World Price of Insider TradingJournal of Financial Abstracts eJournal
-
Xuesong Qian, Zifang Ding, Xiaping Cao, Shusen Qi (2020)
Cross-ownership and collateral in lendingInternational Review of Financial Analysis, 72
-
William Kinney, Zoe-Vonna Palmrose, Susan Scholz (2004)
Auditor Independence, Non‐Audit Services, and Restatements: Was the U.S. Government Right?Journal of Accounting Research, 42
-
Kaijuan Gao, Hanxiao Shen, Xi Gao, Kam Chan (2019)
The power of sharing: Evidence from institutional investor cross-ownership and corporate innovationInternational Review of Economics & Finance
-
Thomas Kubick, Dan Lynch, Michael Mayberry, Thomas Omer (2015)
Product Market Power and Tax Avoidance: Market Leaders, Mimicking Strategies, and Stock ReturnsThe Accounting Review, 90
-
J. Harford, Dirk Jenter, Kai Li (2011)
Institutional cross-holdings and their effect on acquisition decisionsJournal of Financial Economics, 99
-
Mihir Desai (2005)
The Degradation of Reported Corporate ProfitsLSN: Empirical Studies (Topic)
-
Kwok Cheung, Dharmendra Naidu, F. Navissi, Kumari Ranjeeni (2017)
Valuing talent: do CEOs' ability and discretion unambiguously increase firm performanceJournal of Corporate Finance, 42
-
K. Kanagaretnam, Jimmy Lee, C. Lim, Gerald Lobo (2016)
Relation between Auditor Quality and Tax Aggressiveness: Implications of Cross-Country Institutional DifferencesAuditing-a Journal of Practice & Theory, 35
-
Santhosh Ramalingegowda, Steven Utke, Yong Yu (2021)
Common Institutional Ownership and Earnings Management*Contemporary Accounting Research, 38
-
Allison Koester, T. Shevlin, D. Wangerin (2016)
The Role of Managerial Ability in Corporate Tax AvoidanceERN: Econometric Studies of Corporate Governance (Topic)
-
Xianjie He, T. Wong, Danqing Young (2012)
Challenges for Implementation of Fair Value Accounting in Emerging Markets: Evidence from China*Contemporary Accounting Research, 29
-
Xi Li (2010)
The impacts of product market competition on the quantity and quality of voluntary disclosuresReview of Accounting Studies, 15
-
(2001)
Audit Firm Industry Expertise: A Review and Synthesis of the Archival Literature -
Mozaffar Khan, Suraj Srinivasan, Liang Tan (2016)
Institutional Ownership and Corporate Tax Avoidance: New EvidenceCGN: Shareholders in Corporate Governance (Topic)
-
G. Richardson, Bei Wang, Xinmin Zhang (2016)
Ownership structure and corporate tax avoidance: Evidence from publicly listed private firms in ChinaJournal of Contemporary Accounting & Economics, 12
-
S. Rego, R. Wilson (2012)
Equity Risk Incentives and Corporate Tax AggressivenessCorporate Finance: Governance
-
H. Cai, Qiao Liu (2009)
Competition and Corporate Tax Avoidance: Evidence from Chinese Industrial FirmsWiley-Blackwell: Economic Journal
-
Sean McGuire, Thomas Omer, Dechun Wang (2012)
Tax Avoidance: Does Tax-Specific Industry Expertise Make a Difference?The Accounting Review, 87
-
Jie He, Jiekun Huang, Shan Zhao (2018)
Internalizing Governance Externalities: The Role of Institutional Cross-OwnershipCGN: Shareholders in Corporate Governance (Topic)
-
G. Nicholson, Zoie Cook (2009)
The paradox of transparency : short-termism and the institutionalisation of Australian capital marketsAustralian Accounting Review, 19
-
Mark Bradshaw, Guanmin Liao, Mark Ma (2016)
Agency Costs and Tax Planning when the Government is a Major ShareholderInstitutions & Transition Economics: Political Economy eJournal
-
J. Slemrod (2004)
The Economics of Corporate Tax Selfishness, 57
-
Qiang Wu (2015)
The effect of foreign institutional ownership on corporate tax avoidance: International evidence -
Peter Demerjian, B. Lev, Sarah McVay (2011)
Quantifying Managerial Ability: A New Measure and Validity TestsERPN: Governance (Management) (Topic)
-
M. Kacperczyk, C. Sialm, L. Zheng (2005)
On the Industry Concentration of Actively Managed Mutual Funds, 60
-
Tinghua Duan, R. Ding, W. Hou, J. Zhang (2017)
The Burden of Attention: CEO Publicity and Tax AvoidanceCGN: CEOs (Sub-Topic)
-
Yishu Fu, Zhenjiang Qin (2021)
Institutional cross-ownership and corporate philanthropyFinance Research Letters
-
I. Solomon, Michael Shields, O. Whittington (1999)
What Do Industry-Specialist Auditors Know?Journal of Accounting Research, 37
-
Brad Badertscher, Sharon Katz, S. Rego (2013)
The Separation of Ownership and Control and Corporate Tax AvoidanceJournal of Accounting and Economics, 56
-
Sarah Bonner, Jon Davis, B. Jackson (1992)
Expertise In Corporate-Tax Planning - The Issue Identification StageJournal of Accounting Research, 30
-
P. Lisowsky, L. Robinson, A. Schmidt (2013)
Do Publicly Disclosed Tax Reserves Tell Us About Privately Disclosed Tax Shelter Activity?, 51
-
Edward Maydew, Douglas Shackelford (2005)
The Changing Role of Auditors in Corporate Tax PlanningS&P Global Market Intelligence Research Paper Series
-
Diane Guercio, J. Hawkins (1999)
The Motivation and Impact of Pension Fund ActivismCorporate Law: Law & Finance eJournal
-
Hanwen Chen, Song Tang, Donghui Wu, Daoguang Yang (2015)
The Political Dynamics of Corporate Tax Avoidance: The Chinese ExperienceERN: Empirical Studies of Governance & Institutional Change (Topic)
-
Bok Baik, D. Farber, S. Lee (2011)
CEO ability and management earnings forecastsContemporary Accounting Research, 28
-
Gopal Krishnan (2003)
Does Big 6 Auditor Industry Expertise Constrain Earnings ManagementAccounting Horizons, 17
-
James Brickley, Ronald Lease, Clifford Smith (1988)
Ownership structure and voting on antitakeover amendmentsJournal of Financial Economics, 20
-
Peter Demerjian, B. Lev, Melissa Lewis, Sarah McVay (2013)
Managerial Ability and Earnings QualityThe Accounting Review, 88
-
Thomas Kubick, Dan Lynch, Michael Mayberry, Thomas Omer (2016)
The Effects of Regulatory Scrutiny on Tax Avoidance: An Examination of SEC Comment LettersThe Accounting Review, 91
-
Jie He, Jiekun Huang, Heitor Almeida, Bernard Black, Matt Blasko, Mark Chen, Mariassunta Giannetti, Stuart Gillan, Charles Hadlock, Sara Holland, Lixin Huang, Dirk Jenter, Gregory Kadlec, Jung-Eun Kim, Alok Kumar, Chang‐Yang Lee, Ugur Lel, Roni Michaely (2013)
Product Market Competition in a World of Cross-Ownership : Evidence from Institutional Blockholdings Jie -
Michael Jung (2011)
Investor overlap and diffusion of disclosure practicesReview of Accounting Studies, 18
-
C. Leuz, Robert Verrecchia (1999)
The Economic Consequences of Increased DisclosureJournal of Accounting Abstracts
-
Wei Wang, Hua Wang, Ji Wu (2021)
Mixed ownership reform and corporate tax avoidance: Evidence of Chinese listed firmsPacific-Basin Finance Journal
-
Jay Hartzel, L. Starks (2000)
Institutional Investors and Executive CompensationIO: Firm Structure
-
Tanya Tang (2020)
A review of tax avoidance in ChinaChina journal of accounting research, 13
-
C. Cheng, H. Huang, Yinghua Li, Jason Stanfield (2012)
The Effect of Hedge Fund Activism on Corporate Tax AvoidanceThe Accounting Review, 87
-
Roman Lanis, G. Richardson (2012)
Corporate social responsibility and tax aggressiveness: An empirical analysisJournal of Accounting and Public Policy, 31
-
Shuo Xu, Fangjun Wang, C. Cullinan, N. Dong (2022)
Corporate Tax Avoidance and Corporate Social Responsibility Disclosure Readability: Evidence from ChinaAustralian Accounting Review
-
Chris Brooks, Zhong Chen, Yeqin Zeng (2017)
Institutional Cross-Ownership and Corporate Strategy: The Case of Mergers and AcquisitionsCorporate Finance: Governance
-
Kai Li, J. Harford, Xia Chen (2007)
Monitoring: Which Institutions Matter?Singapore Management University School of Accountancy Research Paper Series
-
Petro Lisowsky, Leslie Robinson, Andrew Schmidt (2013)
Do Publicly Disclosed Tax Reserves Tell Us About Privately Disclosed Tax Shelter Activity?: tax reserves and tax shelter activityJournal of Accounting Research, 51
-
Oliver Li, Hang Liu, Chenkai Ni (2017)
Controlling Shareholders’ Incentive and Corporate Tax Avoidance: A Natural Experiment in ChinaERN: Asset Pricing Models (Topic)
-
Scott Dyreng, Michelle Hanlon, Edward Maydew (2009)
The Effects of Executives on Corporate Tax AvoidanceCorporate Governance & Accounting eJournal
-
(2006)
Corporate Tax Avoidance and High‐powered Incentives -
Erin Oldford, Isaac Otchere (2021)
Institutional cross-ownership, heterogeneous incentives, and negative premium mergersReview of Quantitative Finance and Accounting
-
Fabio Gaertner (2013)
CEO After-Tax Compensation Incentives and Corporate Tax AvoidanceStrategy & Microeconomic Policy eJournal
-
Robert Bushman, Qi Chen, Ellen Engel, Abbie Smith (2003)
Financial Accounting Information, Organizational Complexity and Corporate Governance SystemsSPGMI: Compustat Fundamentals (Topic)
-
Shuping Chen, Xia Chen, Q. Cheng, T. Shevlin (2007)
Are Family Firms More Tax Aggressive Than Non-Family Firms?ERPN: Family Business (Topic)
-
H. Huang, L. Liu, K. Raghunandan, D. Rama (2007)
Auditor industry specialization, client bargaining power, and audit fees: Further evidenceEar and Hearing, 26
-
M. Bertrand, A. Schoar (2003)
Managing with Style: The Effect of Managers on Firm Policies, 118
-
Jun-Koo Kang, Juan Luo, H. Na (2018)
Are Institutional Investors with Multiple Blockholdings Effective Monitors?Nanyang Business School Research Paper Series
-
Bengt Holmström, J. Tirole (1993)
Market Liquidity and Performance MonitoringJournal of Political Economy, 101
-
Yangyang Chen, Qingyuan Li, Jeffrey Ng, Chong Wang (2020)
Corporate Financing of Investment Opportunities in a World of Institutional Cross-OwnershipCorporate Finance: Valuation
-
C. Armstrong, Jennifer Blouin, Alan Jagolinzer, D. Larcker (2015)
Corporate Governance, Incentives, and Tax AvoidanceCGN: Financial/Investment Practice (Topic)
-
G. Tian, Garry Twite (2009)
Corporate Governance, External Market Discipline and Firm ProductivityCorporate Finance: Governance
-
Jeffery Abarbanell, Brian Bushee, J. Raedy (2001)
Institutional Investor Preferences and Price Pressure: The Case of Corporate Spin-OffsCorporate Finance and Organizations eJournal
-
José-Miguel Gaspar, M. Massa, Pedro Matos (2005)
Shareholder Investment Horizons and the Market for Corporate ControlS&P Global Market Intelligence Research Paper Series
-
Yishu Fu, Chunbo Liu, Zhenjiang Qin, Dongwei Zhao (2022)
Institutional Cross‐ownership and Firm Social PerformanceCorporate Governance: An International Review
-
D. Simunic (1984)
Auditing, Consulting, And Auditor IndependenceJournal of Accounting Research, 22
-
Andrew Ferguson, Jere Francis, Donald Stokes (2003)
The Effects of Firm‐Wide and Office‐Level Industry Expertise on Audit PricingThe Accounting Review, 78
-
M. Ostrovsky, Gregor Matvos (2006)
Cross-Ownership, Returns and Voting in MergersBehavioral & Experimental Economics
-
F. Gul, Mehdi Khedmati, E. Lim, F. Navissi (2018)
Managerial Ability, Financial Distress, and Audit FeesAccounting Horizons, 32
-
Matteo Arena, Bin Wang, Rongfei Yang (2019)
Securities Litigation and Corporate Tax AvoidanceCorporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
-
S. Kothari, A. Leone, Charles Wasley (2002)
Performance Matched Discretionary Accrual MeasuresMIT Sloan School of Management Working Paper Series
-
I. Salihu, Hairul Annuar, Siti Obid (2015)
Foreign investors' interests and corporate tax avoidance: Evidence from an emerging economyJournal of Contemporary Accounting & Economics, 11
-
Michelle Hanlon, Shane Heitzman (2010)
A Review of Tax ResearchCapital Markets: Asset Pricing & Valuation
-
M. Frank, Luann Lynch, S. Rego (2009)
Tax Reporting Aggressiveness and its Relation to Aggressive Financial ReportingThe Accounting Review, 84
-
(2000)
The Information Content of Stock Markets: Why do Emerging Markets have Synchronous Stock Price Movement -
胡盛昌, 干胜道 (2012)
《The influence of institutional investors on myopic R＆D investment behavior》述评 -
Chun Hoi, Qiang Wu, Hao Zhang (2013)
Is Corporate Social Responsibility (CSR) Associated with Tax Avoidance? Evidence from Irresponsible CSR ActivitiesPOL: Social Responsibility Practices (Topic)
-
Kewei Hou, D. Robinson (2005)
Industry Concentration and Average Stock ReturnsIO: Empirical Studies of Firms & Markets eJournal
-
S. Kwon, C. Lim, P. Tan (2007)
Legal Systems and Earnings Quality: The Role of Auditor Industry SpecializationEar and Hearing, 26
-
Jie Han, Lingbing Liu (2019)
Interlock Concentration and Analyst Forecast Accuracy: Value Implications of InterlockAustralian Accounting Review, 29
-
Tao Chen, Chen Lin (2014)
Does Information Asymmetry Affect Corporate Tax Aggressiveness?Journal of Financial and Quantitative Analysis, 52
-
Marianne Bertrand, A. Schoar (2003)
THE EFFECT OF MANAGERS ON FIRM POLICIES -
Sean McGuire, Dechun Wang, R. Wilson (2011)
Dual Class Ownership and Tax AvoidanceCorporate Finance: Governance
- Publisher
- Wiley
- Copyright
- © 2023 CPA Australia Ltd (CPA Australia).
- ISSN
- 1035-6908
- eISSN
- 1835-2561
- DOI
- 10.1111/auar.12386
- Publisher site
- See Article on Publisher Site
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.
Journal
Australian Accounting Review – Wiley
Published: Mar 1, 2023