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

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

Authors
Zezhong Meng1, *
1Wuhan College, Wuhan, China
*Corresponding author. Email: 2712080137@qq.com
Corresponding Author
Zezhong Meng
Available Online 15 October 2023.
DOI
10.2991/978-94-6463-272-9_13How to use a DOI?
Keywords
Dual holdings; Corporate tax avoidance; Corporate Governance
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.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2023 3rd International Conference on Financial Management and Economic Transition (FMET 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
15 October 2023
ISBN
10.2991/978-94-6463-272-9_13
ISSN
2352-5428
DOI
10.2991/978-94-6463-272-9_13How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zezhong Meng
PY  - 2023
DA  - 2023/10/15
TI  - Dual Holding, Corporate Tax Avoidance, and Mediation Role of Corporate Governance
BT  - Proceedings of the 2023 3rd International Conference on Financial Management and Economic Transition (FMET 2023)
PB  - Atlantis Press
SP  - 116
EP  - 126
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-272-9_13
DO  - 10.2991/978-94-6463-272-9_13
ID  - Meng2023
ER  -