IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-272-9_13.html

Dual Holding, Corporate Tax Avoidance, and Mediation Role of Corporate Governance

In: Proceedings of the 2023 3rd International Conference on Financial Management and Economic Transition (FMET 2023)

Author

Listed:
  • Zezhong Meng

    (Wuhan College)

Abstract

This paper investigates the relationship between dual-holding firms and corporate tax avoidance practices. Dual holding is defined as a situation where at least one financial institution holds both debt and equity in a company simultaneously. I find that dual holding firms significantly increase corporate tax avoidance behavior. I control for the endogeneity issue by using mergers between lenders and institutional shareholders in the same firms as plausibly exogenous shocks, and my results still hold. Through cross-sectional analysis, I also find that the increase in tax avoidance behavior by dual holding companies is more significant in situations where corporate governance is weaker and where information transparency is lower. This suggests that corporate governance and information channels are the reasons why dual holding firms engage in different tax avoidance behaviors.

Suggested Citation

  • Zezhong Meng, 2024. "Dual Holding, Corporate Tax Avoidance, and Mediation Role of Corporate Governance," Advances in Economics, Business and Management Research, in: Vilas Gaikar & Min Hou & Yan Li & Yan Ke (ed.), Proceedings of the 2023 3rd International Conference on Financial Management and Economic Transition (FMET 2023), pages 116-126, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-272-9_13
    DOI: 10.2991/978-94-6463-272-9_13
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;

    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:spr:advbcp:978-94-6463-272-9_13. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.