Tax Avoidance and Institutional Ownership: Active vs. Passive Ownership

Document Type : Original Article

Authors

1 Assistant Professor of Accounting, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 BS student in Accounting,Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

Abstract

Agrawal. K. K. (2007). “corporate tax planning”. 1. 6/E: 3-11.
2) Aligholi, Mansooreh., Jalilian, Addi (2012). Investigating the Relationship between Long-Term / Temporary Institutional Investors and Effective Earnings Management. Knowledge of accounting and managerial Accounting. 1 (4): 27-42.
3) Almazan, A., Hartzell, J., Starks, L.T., 2005. Active institutional shareholders and cost of monitoring: Evidence from managerial compensation. Working paper, University of Texas at Austin.
4) Annuar, Hairul Azlan , Salihu Ibrahim Aramide and Obid iti Normala Sheikh (2014). Corporate ownership, governance and tax avoidance: An interactive effects. Procedia - Social and Behavioral Sciences, 164: 150 – 160 .
5) Berle, A.A., Jr. and Means, G.C. (1932), The Modern Corporation and Private Property, Macmillan, New York, NY.
6) Bradshow, M, Liao, G and Ma, M. (2016). Ownership structure and tax avoidance: evidence from agency costs of ownership in china. Working paper.
7) Bushee, B. J(1998). “The Influence of Institutional Investors on Myopic R&D Investment Behavior“, Accounting Review, 73: 305-334.Chen, K.-P., and C. Chu. 2005. Internal control vs. external manipulation: A model of corporate income tax evasion. RAND Journal of Economics 36: 151–164.
9) Cheng, C. S. A., H. H. Huang, Y. Li, and J. Stanfield. 2012. The effect of hedge fund activism on corporate tax avoidance. Accounting Review 87(5), 1493–1526.
10) Cornett, Marcia Millon, Marcus, Alan, Tehranian, Hassan and Saunders, Anthony (2007). " The impact of institutional ownership on corporate operating performance", Journal of Banking & Finance ,31 (2007) 1771–1794.
11) Crocker, K., and J. Slemrod. 2005. Corporate tax evasion with agency costs. Journal of Public Economics 89: 1593–1610.
12) Dyreng, S., M. Hanlon, and E. Maydew (2010), "The effects of executives on corporate tax avoidance", The Accounting Review, 85(4): 1163-1189.
13) Goh, Beng Wee, Lee, Jimmy, Chee Yeow, Lim and Shevlin, Terry. (2016). the Effect of Corporate Tax Avoidance on the Cost of Equity, The Accounting Review, 91(6): 1647–1670.
14) Hanlon, M, Heitzman , Sh (2010) , " A reviewof tax research", Journal of Accounting and Economics 50, 127-178.
15) Hasana, Iftekhar, Kim, Incheol Tengd, Haimeng and Wue Qiang. (2016). The Effect of Foreign Institutional Ownership on Corporate Tax Avoidance: International Evidence. Working paper.
16) Jam, Farhad. (2000). The Professional Behavior of Tax Advisers: Tax Avoidance and Tax Evasion "Auditor Journal, 6: 41-43.
17) Khani, Abdullah., Imani, Karim., and Mollai, Mahnam. (2013). Investigating the Relationship between Auditor’s Expertise in Industry and Tax Avoidance of Companies Listed in Tehran Stock Exchange". Auditing Knowledge, Vol 13, No 51: 43-68.
18) Khurana, I. K., Moser, W. J., 2013. Institutional shareholders’ investment horizons and tax avoidance. Journal of the American Taxation Association 35(1), 111–134.
19) Kholbadalov Utkir. (2012). cost of debt and institutional ownership: evidence from Malaysia. Revista Atlántica de Economía, 2 :1-36.
20) Khan Mozaffar, Srinivasan Suraj and Tan Liang . (2016). Institutional Ownership and Corporate Tax Avoidance: New Evidence .Electronic copy available at: http://ssrn.com/abstract=2779809
21) Kovermann, Jost and Velte, Patrick. (2019). The impact of corporate governance on corporate tax avoidance—A literature review. Journal of International Accounting, Auditing and Taxation, 36: 1-25.
22) Mehrani, Sasan, Moradi, Mohammad and Eskandar Hoda. (2017). Institutional Ownership Type and Earnings Quality: Evidence from Iran. Emerging Markets Finance & Trade, 1–20, 2016. ISSN: 1540-496X print/1558-0938 online. DOI: 10.1080/1540496X.2016.1145114
23) Navissi, Farshid. and Naiker, Vic (2006). "Institutional Ownership and corporate value", Managerial Finance, Vol. 32 No. 3, 2006 pp. 247-256.
24) Potter, G (1992). "Accounting Earnings Announcements, Institutional Investor Concentration, and Common Stook Returns," Journal Accounting Research, Spring: 146-155.
25) Pourheidari, Omid., Fadavi, Mohammadhassan., Amininia, Meysam. (2015). Investigating the Impact of Tax Avoidance on the Transparency of Financial Reporting of Companies Listed in Tehran Stock Exchange. "Quarterly Journal of Economic Research, 14 (52): 69-85.
26) Rego, S (2003), "Tax avoidance activities of U.S. Multinational corporations", Contemporary Accounting Research, Vol. 20, PP. 805–833.
27) Slemrod, J. 2004. The economics of corporate tax selfishness. National Tax Journal 57: 877–899.
28) Sitinjak, Norman Duma, Chandrarin, Grahita, Sunardi. (2019). Ultimate Ownership Structure, CSR and Tax Avoidance: Evidence from Publicly Listed Manufacturing Firms in Indonesia. IOSR Journal of Business and Management, 21(4): 47-53.
29) Velury, U. and D.S.Jenkins (2006). "Institutional Ownership and The Quality of Earnings", Journal of Business Research, 59:1043-1051.
30) Wang, Xiaohang (2010), "Tax Avoidance, Corporate Transparency, and Firm", Value 5, American Accounting Association Annual Meeting - Tax Concurrent Sessions. Available at SSRN: http://ssrn.com/abstract=1904046 or http://dx.doi.org/10.2139/ssrn.1904046.

Keywords

References

1) Agrawal. K. K. (2007). “corporate tax planning”. 1. 6/E: 3-11.
2) Aligholi, Mansooreh., Jalilian, Addi (2012). Investigating the Relationship between Long-Term / Temporary Institutional Investors and Effective Earnings Management. Knowledge of accounting and managerial Accounting. 1 (4): 27-42.
3) Almazan, A., Hartzell, J., Starks, L.T., 2005. Active institutional shareholders and cost of monitoring: Evidence from managerial compensation. Working paper, University of Texas at Austin.
4) Annuar, Hairul Azlan , Salihu Ibrahim Aramide and Obid iti Normala Sheikh (2014). Corporate ownership, governance and tax avoidance: An interactive effects. Procedia - Social and Behavioral Sciences, 164: 150 – 160 .
5) Berle, A.A., Jr. and Means, G.C. (1932), The Modern Corporation and Private Property, Macmillan, New York, NY.
6) Bradshow, M, Liao, G and Ma, M. (2016). Ownership structure and tax avoidance: evidence from agency costs of ownership in china. Working paper.
7) Bushee, B. J(1998). “The Influence of Institutional Investors on Myopic R&D Investment Behavior“, Accounting Review, 73: 305-334.8) Chen, K.-P., and C. Chu. 2005. Internal control vs. external manipulation: A model of corporate income tax evasion. RAND Journal of Economics 36: 151–164.
9) Cheng, C. S. A., H. H. Huang, Y. Li, and J. Stanfield. 2012. The effect of hedge fund activism on corporate tax avoidance. Accounting Review 87(5), 1493–1526.
10) Cornett, Marcia Millon, Marcus, Alan, Tehranian, Hassan and Saunders, Anthony (2007). " The impact of institutional ownership on corporate operating performance", Journal of Banking & Finance ,31 (2007) 1771–1794.
11) Crocker, K., and J. Slemrod. 2005. Corporate tax evasion with agency costs. Journal of Public Economics 89: 1593–1610.
12) Dyreng, S., M. Hanlon, and E. Maydew (2010), "The effects of executives on corporate tax avoidance", The Accounting Review, 85(4): 1163-1189.
13) Goh, Beng Wee, Lee, Jimmy, Chee Yeow, Lim and Shevlin, Terry. (2016). the Effect of Corporate Tax Avoidance on the Cost of Equity, The Accounting Review, 91(6): 1647–1670.
14) Hanlon, M, Heitzman , Sh (2010) , " A reviewof tax research", Journal of Accounting and Economics 50, 127-178.
15) Hasana, Iftekhar, Kim, Incheol Tengd, Haimeng and Wue Qiang. (2016). The Effect of Foreign Institutional Ownership on Corporate Tax Avoidance: International Evidence. Working paper.
16) Jam, Farhad. (2000). The Professional Behavior of Tax Advisers: Tax Avoidance and Tax Evasion "Auditor Journal, 6: 41-43.
17) Khani, Abdullah., Imani, Karim., and Mollai, Mahnam. (2013). Investigating the Relationship between Auditor’s Expertise in Industry and Tax Avoidance of Companies Listed in Tehran Stock Exchange". Auditing Knowledge, Vol 13, No 51: 43-68.
18) Khurana, I. K., Moser, W. J., 2013. Institutional shareholders’ investment horizons and tax avoidance. Journal of the American Taxation Association 35(1), 111–134.
19) Kholbadalov Utkir. (2012). cost of debt and institutional ownership: evidence from Malaysia. Revista Atlántica de Economía, 2 :1-36.
20) Khan Mozaffar, Srinivasan Suraj and Tan Liang . (2016). Institutional Ownership and Corporate Tax Avoidance: New Evidence .Electronic copy available at: http://ssrn.com/abstract=2779809
21) Kovermann, Jost and Velte, Patrick. (2019). The impact of corporate governance on corporate tax avoidance—A literature review. Journal of International Accounting, Auditing and Taxation, 36: 1-25.
22) Mehrani, Sasan, Moradi, Mohammad and Eskandar Hoda. (2017). Institutional Ownership Type and Earnings Quality: Evidence from Iran. Emerging Markets Finance & Trade, 1–20, 2016. ISSN: 1540-496X print/1558-0938 online. DOI: 10.1080/1540496X.2016.1145114
23) Navissi, Farshid. and Naiker, Vic (2006). "Institutional Ownership and corporate value", Managerial Finance, Vol. 32 No. 3, 2006 pp. 247-256.
24) Potter, G (1992). "Accounting Earnings Announcements, Institutional Investor Concentration, and Common Stook Returns," Journal Accounting Research, Spring: 146-155.
25) Pourheidari, Omid., Fadavi, Mohammadhassan., Amininia, Meysam. (2015). Investigating the Impact of Tax Avoidance on the Transparency of Financial Reporting of Companies Listed in Tehran Stock Exchange. "Quarterly Journal of Economic Research, 14 (52): 69-85.
26) Rego, S (2003), "Tax avoidance activities of U.S. Multinational corporations", Contemporary Accounting Research, Vol. 20, PP. 805–833.
27) Slemrod, J. 2004. The economics of corporate tax selfishness. National Tax Journal 57: 877–899.
28) Sitinjak, Norman Duma, Chandrarin, Grahita, Sunardi. (2019). Ultimate Ownership Structure, CSR and Tax Avoidance: Evidence from Publicly Listed Manufacturing Firms in Indonesia. IOSR Journal of Business and Management, 21(4): 47-53.
29) Velury, U. and D.S.Jenkins (2006). "Institutional Ownership and The Quality of Earnings", Journal of Business Research, 59:1043-1051.
30) Wang, Xiaohang (2010), "Tax Avoidance, Corporate Transparency, and Firm", Value 5, American Accounting Association Annual Meeting - Tax Concurrent Sessions. Available at SSRN: http://ssrn.com/abstract=1904046 or http://dx.doi.org/10.2139/ssrn.1904046.
International Journal of Finance & Managerial Accounting
Volume 5, Issue 17
May 2020
Pages 95-106

Files

Share

How to cite

Statistics