Dr. Justin Mindzak of the School of Business has had an article published in the February issue of the Accounting Research Journal, “Pyramid Ownership Structure and Tax Avoidance among Canadian Firms.”
The article explores how firms affiliate with pyramidal structures in order to engage in more tax avoidance practices. The results found that firms with more complex structures, those on the lower tier of the pyramids, and firms with a larger deviation between controlling shareholders’ cash flow rights and control rights engage in more tax avoidance practices.
Dr. Mindzak co-authored the paper with Dr. Tao Zeng of Wilfrid Laurier University. It is their second collaboration in this area. Previously, they published “The Impact of Pyramid Ownership on Earnings Management” in the 2018 issue of the Asian Review of Accounting.
It is reported that the work of Dr. Mindzak and Dr. Zeng has helped put a spotlight on different practices international corporations utilize for tax avoidance activities.
