Table 10

Mediating role of tax avoidance in the interaction role of family firms with corporate transparency and CEO turnover

DV=CEO_TURNDV = TAX_AVOIDDV=CEO_TURN
Model (1)Model (2)Model (3)
FF×TRANS0.017***−0.002*0.017***
(4.340)(–1.890)(4.418)
TAX_AVOID0.210***
  (5.010)
FF−0.048***0.002−0.048***
(–5.690)(1.090)(–5.738)
TRANS−0.017***−0.001−0.017***
(–5.130)(–1.540)(–5.068)
Intercept0.088−0.0060.090
(0.320)(–0.120)(0.329)
Control variablesYesYesYes
Year fixed effectsYesYesYes
Industry fixed effectsYesYesYes
Observations14,62614,62614,626
R20.0560.2330.057
Mediating effects
Indirect effect: FF_TRANS ×TAX_AVOID−0.0003* 
z-statistic for indirect effect: FF_TRANS ×TAX_AVOID(–1.765) 
Direct effect0.0178 
Total effect0.0172 
% of total mediated effect1.744% 

Note(s): This table presents the regression results examining the mediating role of tax avoidance in the relationship between corporate transparency in family firms and CEO turnover. Model (1) shows the association between corporate transparency in family firms and CEO turnover. Model (2) reports the association between corporate transparency in family firms and tax avoidance. Model (3) shows the impact of corporate transparency in family firms on CEO turnover after controlling for the mediator variable, tax avoidance. Superscripts ***, **, and * represent significance levels at the 1, 5, and 10% levels, respectively. Variables are defined in  Appendix

Source(s): Authors' own work

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