Literature Review: The Influence of Family Ownership on Tax Avoidance
DOI:
https://doi.org/10.56456/jebdeker.v6i1.852Keywords:
Family Ownership, Tax Avoidance, Corporate Governance, Business Ethics, Systematic Literature ReviewAbstract
This study aims to systematically review the relationship between family ownership and tax avoidance by applying a Systematic Literature Review (SLR) method on 25 relevant national and international articles, with an in depth synthesis of six core studies. The findings reveal that the impact of family ownership on tax avoidance is nonlinear and highly dependent on contextual factors such as corporate governance, business ethics, and institutional environment. In developing countries, family firms tend to engage more aggressively in tax avoidance due to weak regulatory oversight and governance structures. Conversely, in developed countries, family ownership often reduces tax avoidance practices, driven by long term orientation and reputational concerns. This review also highlights the diversity of tax avoidance measurement methods used in the literature, including GAAP ETR, Cash ETR, Book Tax Differences (BTD), and Long Run ETR, each with distinct strengths and limitations. The study emphasizes the importance of employing multi-theoretical frameworks and longitudinal approaches to better understand the fiscal behavior of family firms. The findings are expected to contribute to the development of corporate governance theory and offer valuable insights for policymakers in designing more effective and context sensitive tax regulations.
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