Analyzing the Relationship Between Tax Avoidance Practices and the Persistence of Accounting Earnings: The Mediating Role of Institutional Ownership – An Empirical Study on Egyptian Listed Companies
Ahmed Mohamed Ghali, A., Fattouh Mohamed Eid, R. (2025). Analyzing the Relationship Between Tax Avoidance Practices and the Persistence of Accounting Earnings: The Mediating Role of Institutional Ownership – An Empirical Study on Egyptian Listed Companies. EKB Journal Management System, 2(1), 5-5. doi: 10.21608/hssja.2025.435783
Ashraf Ahmed Mohamed Ghali; Rabie Fattouh Mohamed Eid. "Analyzing the Relationship Between Tax Avoidance Practices and the Persistence of Accounting Earnings: The Mediating Role of Institutional Ownership – An Empirical Study on Egyptian Listed Companies". EKB Journal Management System, 2, 1, 2025, 5-5. doi: 10.21608/hssja.2025.435783
Ahmed Mohamed Ghali, A., Fattouh Mohamed Eid, R. (2025). 'Analyzing the Relationship Between Tax Avoidance Practices and the Persistence of Accounting Earnings: The Mediating Role of Institutional Ownership – An Empirical Study on Egyptian Listed Companies', EKB Journal Management System, 2(1), pp. 5-5. doi: 10.21608/hssja.2025.435783
Ahmed Mohamed Ghali, A., Fattouh Mohamed Eid, R. Analyzing the Relationship Between Tax Avoidance Practices and the Persistence of Accounting Earnings: The Mediating Role of Institutional Ownership – An Empirical Study on Egyptian Listed Companies. EKB Journal Management System, 2025; 2(1): 5-5. doi: 10.21608/hssja.2025.435783

Analyzing the Relationship Between Tax Avoidance Practices and the Persistence of Accounting Earnings: The Mediating Role of Institutional Ownership – An Empirical Study on Egyptian Listed Companies

Humanities and Social Sciences Journal of Abstracts
Volume 2, Issue 1, September 2025, Page 5-5  XML PDF (396.78 K)
Document Type: Articles Abstracts
DOI: 10.21608/hssja.2025.435783
View on SCiNiTO View on SCiNiTO
Authors
Ashraf Ahmed Mohamed Ghali email 1; Rabie Fattouh Mohamed Eid email 2
1Associate Professor Accounting Department, Faculty of Commerce, Suez Canal University
2Associate Professor, Accounting Department, Faculty of Commerce, Damanhur University
Abstract
This research investigated the complex relationship between corporate tax avoidance and the sustainability of accounting earnings, specifically exploring the mediating influence of institutional ownership. The study employed content analysis on a sample of 73 Egyptian listed companies, utilizing seven years of data (2017-2023), which yielded a total of 511 observations. Multivariate linear regression, specifically the Pooled Regression Model, was used for statistical analysis with SPSS and E-Views.
Findings indicate that while tax avoidance offers short-term advantages, such as increased profit margins and meeting analyst expectations, it poses significant long-term legal risks due to heightened scrutiny. Furthermore, an overemphasis on tax avoidance can mislead stakeholders about a company's true financial health. Crucially, institutional investors were found to play a vital role in stabilizing accounting earnings and promoting responsible tax practices. The study established a significant negative correlation between tax avoidance and earnings sustainability (adjusted R²=0.5427), and a strong correlation between institutional ownership and tax avoidance (adjusted R²=0.7780). Institutional ownership effectively mediated the relationship between tax avoidance and earnings sustainability (adjusted R²=0.8824). The researchers recommend future studies to develop strategies for enhancing tax compliance and redirecting accounting thought towards understanding the broader economic impacts of tax avoidance. This research uniquely contributes to the accounting and economic literature by empirically exploring these interrelationships within the Arab context.
Keywords
Tax avoidance; Accounting earnings sustainability; Institutional ownership; Corporate governance
Statistics
Article View: 62
PDF Download: 14