Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance

Author:

Thai Hanh MinhORCID,Dang Khue NgocORCID,Nor Normaziah Mohd,Nguyen Hien Thi,Nguyen Khiem Van

Abstract

PurposeThis study aims to investigate the relationship between corporate tax avoidance and stock price crash risk and the moderating effects of corporate governance.Design/methodology/approachThis study investigates the relationship between corporate tax avoidance and stock price crash risk using the sample consisting of listed firms in Vietnam for the period of 2011–2020 using panel regressions.FindingsThe authors find that there is a positive relationship between tax avoidance and stock price crash risk. Foreign ownership weakens the impacts of tax avoidance on stock price crash risk, while managerial ownership strengthens the impacts. Female Chief Executive Officers (CEOs) and female chairpersons weaken this relationship. Board gender diversity and state ownership have insignificant moderating impacts.Practical implicationsThese findings could help the stock market build better internal monitoring mechanisms to reduce the impacts of tax avoidance on future stock price crash risk. Investors can recognize the characteristics of corporate governance, especially foreign ownership, managerial ownership, female CEOs and female chairpersons when making investment decisions. The policy makers should consider policies to attract foreign investment and support women entrepreneurship.Originality/valueThis paper contributes to the literature on the impacts of tax avoidance on stock price crash risk in emerging countries. This paper is the first to investigate the influence of corporate governance mechanisms including state ownership, foreign ownership, female CEOs and chairpersons and board gender diversity on this relationship.

Publisher

Emerald

Subject

General Earth and Planetary Sciences,General Environmental Science

Reference84 articles.

1. Managerial overconfidence and accounting conservatism;Journal of Accounting Research,2012

2. Financial distress risk and stock price crashes;Journal of Corporate Finance,2021

3. The separation of ownership and control and corporate tax avoidance;Journal of Accounting and Economics,2013

4. Stock price crashes in emerging markets;International Review of Economics and Finance,2021

5. Market and political/regulatory perspectives on the recent accounting scandals;Journal of Accounting Research,2009

Cited by 7 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3