IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpep/v2024y2024i1id865p103-136.html
   My bibliography  Save this article

Multiple Large Shareholders, Investment Efficiency and Corporate Tax Avoidance: Evidence from China

Author

Listed:
  • Xiaohong Yu
  • Maonan Chen
  • Yujun Ye

Abstract

This study assesses the relationship between the ownership structure and corporate tax avoidance based on annual financial data of Chinese A-share listed firms during 2010-2020. Firstly, the empirical results demonstrate that when a listed firm has multiple large shareholders (MLS), these shareholders are likely to weaken internal monitoring and collude with each other, which will lower its corporate governance level and increase its corporate tax avoidance (CTA) level. The empirical conclusion remains valid after multiple robustness tests. Secondly, the empirical result of the baseline model is significantly influenced by the nature of ownership, the quality of external audit, the tracking of securities analysts and the firm's location. Finally, the result of our mediating effect analysis shows that the presence of MLS reduces the company investment efficiency, which provokes firms to make aggressive financial choices to obtain resources to ensure their future development.

Suggested Citation

  • Xiaohong Yu & Maonan Chen & Yujun Ye, 2024. "Multiple Large Shareholders, Investment Efficiency and Corporate Tax Avoidance: Evidence from China," Prague Economic Papers, Prague University of Economics and Business, vol. 2024(1), pages 103-136.
    • Handle: RePEc:prg:jnlpep:v:2024:y:2024:i:1:id:865:p:103-136
    as

    Download full text from publisher

    File URL: http://pep.vse.cz/artkey/pep-202401-0005_multiple-large-shareholders-investment-efficiency-and-corporate-tax-avoidance-evidence-from-china.php
    Download Restriction: free of charge
    File URL: http://pep.vse.cz/pdfs/pep/2024/01/05.pdf
    Download Restriction: free of charge
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    corporate tax avoidance; multiple large shareholders; corporate governance; mediating effect analysis;
    All these keywords.

    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpep:v:2024:y:2024:i:1:id:865:p:103-136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.