The Effect of Ownership Structure on Imputed Tax Credit Ratio

• Main Authors: Szu-Ying Huang, 黃思穎
• Other Authors: Yu-Huei Su
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/92027526556257151068

碩士 === 東吳大學 === 會計學系 === 100 === Within the agency framework, this study aims to examining the relations between corporate tax behavior, measured by imputed tax credit ratio to reflect integration of the individual and corporate tax systems, and the ownership structure of listed companies in Taiwan. The highly concentrated ownership and cross-holding and pyramidal structures create agency conflicts between controlling owners and minority shareholders in East Asian countries. In contrast to the entrenchment effect, the empirical evidence indicates that an decrease in the degree of divergence between the controlling owner’s voting rights and cash flow rights increases the imputed credit tax ratio, suggesting that an increase of imputed credit tax ratio improves the alignment effect of controlling owners and minority shareholders. The result is consistent with two complementary explanations. Dominated by personal tax incentives and/or reputation concerns, controlling owners are willing to pay more corporate income tax. That leads to yield a higher imputed tax credit ratio.