The impact of ownership structure on corporate tax avoidance with corporate social responsibility as mediating variable
ISSN: 1359-0790
Article publication date: 30 August 2021
Issue publication date: 24 May 2022
Abstract
Purpose
The purpose of this paper is to investigate the direct and indirect relationship between institutional ownership and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable.
Design/methodology/approach
This study uses panel data set of 200 French firms listed during the 2007–2018 period. The direct and indirect effects between managerial ownership and tax avoidance were tested by using structural equation model analysis.
Findings
The results indicate that institutional ownership negatively affects tax avoidance. The greater the proportion of the institutional ownership, the lower the likelihood of tax avoidance usage. From the result of the Sobel test, this study indicated that CSR partially mediates the effect of institutional ownership on corporate tax avoidance.
Practical implications
The findings have some policy and practical implications that may help regulators in improving the quality of transactions and in achieving more efficient market supervision. They recommend to the government to add regulations and restrictions to the structure of corporate ownership to control corporate tax avoidance in French companies.
Originality/value
This study extends the existing literature by examining both the direct and indirect effect of institutional ownership on corporate tax avoidance in French companies by including CSR as a mediating variable.
Keywords
Citation
Dakhli, A. (2022), "The impact of ownership structure on corporate tax avoidance with corporate social responsibility as mediating variable", Journal of Financial Crime, Vol. 29 No. 3, pp. 836-852. https://doi.org/10.1108/JFC-07-2021-0152
Publisher
:Emerald Publishing Limited
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