Abstract: As opposed to previous studies that focus on formal institutions, this study empirically examines the effect of surname relationships within management teams on tax avoidance. This study reveals that the surname relationship among the management team contributes to tax avoidance. The above relationship is more pronounced for firms that are more profoundly influenced by surname relationships. Mechanism analysis suggests that the surname relationship contributes to tax avoidance by weakening internal monitoring mechanisms and reducing managerial risk-aversion. This study not only contributes to the literature concerning the economic consequences of surname culture and the factors affecting tax avoidance, but also has practical implications for improving corporate governance structures and government tax regulations.

Key words: tax avoidance, surname relationship, top management team, internal supervision, risk preference