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Actual controllers with foreign residency rights and corporate tax avoidance: Evidence from private listed companies in China

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  • Pan, Xiaozhen
  • Aimaiti, Sabahati

Abstract

This study empirically tests the effect of actual controllers with foreign residency rights on corporate tax avoidance using a sample of A-share private listed companies in Shanghai and Shenzhen from 2013 to 2022. The results show that actual controllers with foreign residency rights increase corporate tax avoidance. Specifically, this occurs only under conditions of high tax collection intensity, low media attention, concurrent executive positions, and indirect shareholding. Further research shows that actual controllers with foreign residency rights increase the enterprise's information asymmetry and financing constraints.

Suggested Citation

  • Pan, Xiaozhen & Aimaiti, Sabahati, 2025. "Actual controllers with foreign residency rights and corporate tax avoidance: Evidence from private listed companies in China," Emerging Markets Review, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:ememar:v:69:y:2025:i:c:s1566014125001207
    DOI: 10.1016/j.ememar.2025.101371
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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