Family Ownership, Corporate Governance Quality and Tax Avoidance: Evidence from an Emerging Market—The Case of Jordan

Mohammad I. Almaharmeh (), Ali Shehadeh, Hani Alkayed, Mohammad Aladwan and Majd Iskandrani
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Mohammad I. Almaharmeh: Accounting Department, Business School, The University of Jordan/Aqaba Campus, Aqaba 77110, Jordan
Ali Shehadeh: Finance Department, Business School, The University of Jordan/Aqaba Campus, Aqaba 77110, Jordan
Hani Alkayed: Accounting Department, University of Petra, Amman 1196, Jordan
Mohammad Aladwan: Accounting Department, Business School, The University of Jordan/Aqaba Campus, Aqaba 77110, Jordan
Majd Iskandrani: Business School, The University of Jordan, Amman 11942, Jordan

JRFM, 2024, vol. 17, issue 2, 1-18

Abstract: This study examines the impact of family ownership on tax avoidance decisions. This study further investigates the effects of corporate governance quality on the relationship between family ownership and tax avoidance. We construct a sample of non-financial firms listed on the ASE for the period 2015–2021. The results demonstrate that family-owned firms have high levels of tax avoidance. This result supports the private-benefit expropriation hypothesis. Regarding the mediating effect of corporate governance variables, the results suggest that large audit committees and audit committees that meet more frequently curb attempts by family owners to avoid paying tax.

Keywords: family ownership; institutional ownership; audit committee; corporate governance; tax avoidance; emerging markets; Jordan (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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