Are Family Firms more Tax Aggressive than Non-family Firms?

• Main Authors: CHEN, Shuping, CHEN, Xia, CHENG, Qiang, Shevlin, Terry
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Tax aggressiveness; Family firms; Non-tax costs; Agency problems; Accounting; Entrepreneurial and Small Business Operations; Taxation
• Online Access: https://ink.library.smu.edu.sg/soa_research/823; https://ink.library.smu.edu.sg/context/soa_research/article/1822/viewcontent/SSRN_id1014280.pdf
• Institution: Singapore Management University

Taxes represent a significant cost to the firm and shareholders, and it is generally expected that shareholders prefer tax aggressiveness. However, this argument ignores potential non-tax costs that can accompany tax aggressiveness, especially those arising from agency problems. Firms owned/run by f...