Insider and Institutional Ownership, CSR Disclosure, and Tax Avoidance: A Comparative Study of Family and Non-Family Firms in Pakistan
DOI:
https://doi.org/10.29145/jqm.92.01Keywords:
Insider Ownership, Institutional Ownership, Corporate Social Responsibility, Tax Avoidance, PakistanAbstract
This study investigates the comparative impact of insider and institutional ownership on CSR disclosure and tax avoidance, between family (n = 120) and non-family (n = 130) firms listed on the PSX (2018–2023) employing the FGLS regression analysis which show that insider ownership positively influences CSR disclosure, particularly in family firms, while institutional ownership also supports CSR disclosure across both firm types, but more strongly in non-family firms. Conversely, insider ownership negatively correlates with tax avoidance in family firms, suggesting reputational and long-term considerations, while institutional ownership is positively associated with tax avoidance regardless of firm type concluding that ownership composition significantly shapes firms’ strategic responses in crises, with family firms showing greater ethical sensitivity. The study concludes that regulators and policymakers should consider designing differentiated governance codes that reflect the structural differences between family and non-family firms so that disclosure requirements could be adjusted based on ownership concentration. Future studies should consider non-financial firms listed on the PSX classifying firms into family and non-family types based on a founder-led vs. second-generation family control.
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