Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance
Purpose: This study aims to investigate the relationship between corporate tax avoidance and stock price crash risk and the moderating effects of corporate governance. Design/methodology/approach: This study investigates the relationship between corporate tax avoidance and stock price crash risk usi...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2025
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/119469/ http://psasir.upm.edu.my/id/eprint/119469/1/119469.pdf |
| _version_ | 1848867974382878720 |
|---|---|
| author | Thai, Hanh Minh Dang, Khue Ngoc Nor, Normaziah Mohd Nguyen, Hien Thi |
| author_facet | Thai, Hanh Minh Dang, Khue Ngoc Nor, Normaziah Mohd Nguyen, Hien Thi |
| author_sort | Thai, Hanh Minh |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Purpose: This study aims to investigate the relationship between corporate tax avoidance and stock price crash risk and the moderating effects of corporate governance. Design/methodology/approach: This 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. Findings: The 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 implications: These 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/value: This 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. |
| first_indexed | 2025-11-15T14:45:01Z |
| format | Article |
| id | upm-119469 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:45:01Z |
| publishDate | 2025 |
| publisher | Emerald Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1194692025-08-25T07:43:14Z http://psasir.upm.edu.my/id/eprint/119469/ Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance Thai, Hanh Minh Dang, Khue Ngoc Nor, Normaziah Mohd Nguyen, Hien Thi Purpose: This study aims to investigate the relationship between corporate tax avoidance and stock price crash risk and the moderating effects of corporate governance. Design/methodology/approach: This 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. Findings: The 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 implications: These 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/value: This 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. Emerald Publishing 2025 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/119469/1/119469.pdf Thai, Hanh Minh and Dang, Khue Ngoc and Nor, Normaziah Mohd and Nguyen, Hien Thi (2025) Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance. International Journal of Emerging Markets, 20 (1). art. no. undefined. pp. 1-25. ISSN 1746-8809; eISSN: 1746-8817 https://www.emerald.com/ijoem/article/20/1/1-25/1244360 10.1108/IJOEM-11-2021-1767 |
| spellingShingle | Thai, Hanh Minh Dang, Khue Ngoc Nor, Normaziah Mohd Nguyen, Hien Thi Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance |
| title | Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance |
| title_full | Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance |
| title_fullStr | Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance |
| title_full_unstemmed | Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance |
| title_short | Corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance |
| title_sort | corporate tax avoidance and stock price crash risk: the moderating effects of corporate governance |
| url | http://psasir.upm.edu.my/id/eprint/119469/ http://psasir.upm.edu.my/id/eprint/119469/ http://psasir.upm.edu.my/id/eprint/119469/ http://psasir.upm.edu.my/id/eprint/119469/1/119469.pdf |