The effect of board of director composition on corporate tax aggressiveness

Lanis, Roman; Richardson, Grant

doi:10.1016/j.jaccpubpol.2010.09.003

Cited by 327 publications

(400 citation statements)

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“…In particular, compensation incentive for directors is an important driver for tax management. In addition, Lanis and Richardson (2011) find that having a higher proportion of independent directors on the board reduces the likelihood of tax aggressiveness in Australia. However, these studies do not deal with the effect of ownership structure on tax reporting.…”

Section: Introductionmentioning

confidence: 89%

“…Uzun et al (2004) find that firms with a high percentage of independent directors have less financial fraud because independent directors have fewer incentives for the firms to commit fraud. Based on a small sample of matched tax-aggressive and non-tax-aggressive Australian firms, Lanis and Richardson (2011) find that a higher proportion of independent directors reduces the likelihood of tax aggressiveness.…”

Section: Board Compositionmentioning

confidence: 96%

“…Some recent studies provide evidence that board characteristics affect a firm's tax strategies (e.g. Minnick and Noga, 2010;Lanis and Richardson, 2011). In this study, we specifically examine the impact of board composition, duality role of the board chairman and board shareholdings on the tax aggressiveness of government versus non-government-controlled firms.…”

Section: Corporate Governance and Tax Aggressivenessmentioning

confidence: 99%

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Government ownership, corporate governance and tax aggressiveness: evidence from China

Chan¹,

Zhou³

2013

Account Finance

113

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This study investigates how government ownership and corporate governance influence a firm's tax aggressiveness. Using Chinese listed companies during 2003-2009, we find that compared with government-controlled firms, nongovernment-controlled firms pursue a more aggressive tax strategy. In particular, non-government-controlled firms with a higher percentage of the board shareholdings and with a CEO who also serves as the board chairman are more aggressive. For government-controlled firms, we find that board shareholding has an impact on tax aggressiveness and it does not differ between local and central government-controlled firms. However, local government-controlled firms in less developed regions where the implementation of corporate governance measures is generally less effective are more tax aggressive than those in other regions.

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Section: Introductionmentioning

confidence: 89%

Section: Board Compositionmentioning

confidence: 96%

Section: Corporate Governance and Tax Aggressivenessmentioning

confidence: 99%

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Government ownership, corporate governance and tax aggressiveness: evidence from China

Chan¹,

Zhou³

2013

Account Finance

113

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“…Minnick and Noga (2010) were the first who investigate the impact of corporate governance mechanisms on tax planning in American context. Lanis and Richardson (2011) emphasized on the characteristics of the board effects on tax shelter in Australian companies.…”

Section: Introductionmentioning

confidence: 99%

“…Firstly, despite the recent calls for research into this subject (Minnick & Noga, 2010;Lanis & al., 2011), to our knowledge, we are the first to investigate the relations between the board of directors and tax planning in the Tunisian context. Secondly, our main contribution to the literature is to show the importance of the board in strategic tax decisions related to minimizing tax burdens.…”

Section: Introductionmentioning

confidence: 99%

The board of directors and the corporate tax planning: Empirical Evidence from Tunisia

Aliani¹,

Ali²

2012

ijafr

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Our study represents the first attempt to investigate whether board of directors" attributes have an impact on corporate tax planning in a developing country. Using a sample of 32 companies listed on the Tunisian stock exchange market from 2000 to 2007, results indicate that duality and diversity on the board of directors significantly influences tax planning. Duality exhibits a negative relation with effective tax rates. However, diversity on the board shows a positive association. We don"t find relations between board size, independent directors and corporate tax planning. We contribute to the large literature on corporate tax planning by proposing that board"s characteristics may have a substantial effect on reducing effective tax rates. We add a new angle to existing studies on corporate tax governance by involving board"s diversity and sectorial effect. An implication of this study is that tax planning would be decreased by women"s presence on the board of directors. In addition, tax incentives granted by the state to some sectors may improve tax strategies.

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Sustainable institutional investors, corporate sustainability performance, and corporate tax avoidance: Empirical evidence for the European capital market

Velte

2023

Corp Soc Responsibility Env

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This study addresses the influence of sustainable institutional investors (SII), based on the signatory status of the UN Principles for Responsible Investment (PRI), on corporate tax avoidance. Moreover, the moderating influence of corporate sustainability performance (CSP) is analyzed. The analyses concentrate on a European sample consisting of 1689 firm‐year observations between 2014 and 2020 (EUROSTOXX 600) embedded in a stakeholder agency theoretical framework. Correlation, regression, and robustness analyses are conducted. The results are in line with prior studies on equity ownership and tax avoidance and indicate that SII have a negative impact on tax avoidance and that CSP strengthens this negative effect. These results are robust to a battery of sensitivity analyses. SII represent a major monitoring mechanism in promoting responsible tax behavior, which is in line with other stakeholders' interests. Tax avoidance should be integrated into overall sustainability management to realize an increased firm reputation. As the European Commission initiated several regulations on sustainable finance, sustainability reporting, and tax disclosure, the empirical results stress the interdependencies between ownership structure, CSP, and tax avoidance. The study makes a major contribution to prior analyses, as this study is the first to assess the link between SII and tax avoidance and the moderating impact of CSP to urge top management to increase sustainability efforts.

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The effect of board of director composition on corporate tax aggressiveness

Cited by 327 publications

References 50 publications

Government ownership, corporate governance and tax aggressiveness: evidence from China

Government ownership, corporate governance and tax aggressiveness: evidence from China

The board of directors and the corporate tax planning: Empirical Evidence from Tunisia

Sustainable institutional investors, corporate sustainability performance, and corporate tax avoidance: Empirical evidence for the European capital market

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