The effect of corporate governance mechanisms on tax planning during financial crisis: an empirical study of companies listed on the Athens stock exchange

Chytis, Evangelos; Tasios, Stergios; Filos, Ioannis

doi:10.1057/s41310-020-00072-3

Cited by 29 publications

(27 citation statements)

References 27 publications

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“…In terms of board independence, prior studies reflect that a board with more independent members would improve performance and add greater shareholder wealth (Yermack, 1996). Much of the related literature has explored whether independent members on the board can provide useful knowledge from their own experience regarding tax avoidance decisions (Chytis et al , 2020; Minnick and Noga, 2010; Scholes et al , 2009). Further, Armstrong et al (2015) found that the presence of independent members representing a higher percentage of the total number of board members leads to the provision of opportunities to exercise a controlling function to reduce actions that, carried out by executives, are related to the planning and reporting of corporate taxes.…”

Section: Theoretical Framework Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan

Alkurdi¹,

Mardini

2020

JFRA

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Purpose Adopting agency theory, the purpose of this study is to explore the impact of ownership structure and board of directors’ composition on the extent of tax avoidance strategies. Design/methodology/approach The sample included all of the Jordanian first market companies listed on the Amman Stock Exchange from 2012 to 2017, comprising 348 observations. Findings The main finding of the paper is that tax avoidance is negatively related to managerial and institution ownership structures, which reduces the usage of tax avoidance strategies. Foreign ownership, however, has a positive relation that increases the likelihood of adopting tax avoidance strategies. Practical implications This study has policy implications for policymakers in relation to designing future tax systems to reduce the possibility of engaging in tax avoidance practices. Originality/value To the best of the authors’ knowledge, this study is the first of its kind that investigates the effects of the managerial, foreign and institutional ownership classes and board composition on tax avoidance for Jordanian listed companies.

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Section: Theoretical Framework Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan

Alkurdi¹,

Mardini

2020

JFRA

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“…Minnick and Noga (2010) postulated that in-dependent directors can consolidate tax avoidance practices because they can supply essential knowledge and basic perceptions from their own sector and practice. Chytis et al (2020) showed a significant positive association of board independence with tax planning, while found a positive relationship between effective tax rate and independent directors. However, according to Lanis and Richardson (2011), the significant presence of independent directors on the board can increase its control effectiveness.…”

Section: Director Independencementioning

confidence: 88%

A Comparison of Corporate Governance and Tax Avoidance of UK and Japanese Firms

Salhi

Jabr

Jarboui

2020

CER

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The present study was designed to determine the relationship between corporate governance and tax avoidance in an international setting. Financial and governance data sourced from the Datastream database for a sample of Japanese and UK firms between 2012 and 2017 are used. First, we examine the direct effect of several corporate governance mechanisms on tax avoidance. Second, we divide the full sample into two groups (common law and code law legal system) to explore the relationship between law, corporate governance, and tax avoidance. We use both univariate and feasible generalized least square (FGLS) regression methods to examine our hypotheses. This study finds that the board size, independent directors, and the presence of women on boards of directors reduce the likelihood of tax avoidance. However, we find an insignificant association between ownership concentration and tax avoidance. Second, it also finds that firms in countries with higher country-level governance engage in less tax avoidance. The results also suggest that the role of corporate governance is more pronounced for firms operating in common law countries than those in code law countries. This manuscript is one of the few studies that examine the relationship between corporate governance and tax avoidance in an international setting with different legal and institutional environment. This relationship differs across the two countries. This paper clearly identifies implications for research, practice, and society. It documents that when a country implements a good system of governance, which targets improving transparency and accountability, it will lead to less corporate tax avoidance.

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“…Hal ini akan mengakitbakan tindakan perencanaan pajak perusahaan menurun. Pernyataan ini didukung dengan penelitian yang dilakukan oleh (Irianto, Sudibyo, & Wafirli, 2017), (Dias & Reis, 2018), (Aburajab, Maali, Jaradat, & Alsharairi, 2019), (Hazir, 2019), dan (Chytis, Taslos, & Filos, 2020) menyatakan bahwa ukuran perusahaan berpengaruh terhadap perencanaan pajak yang dilakukan perusahaan.…”

Section: Profitabilitas Terhadap Perencanaan Pajakunclassified

“…Hasil penelitian ini sejalan dengan penelitian terdahulu yang menyatakan proporsi Kepemilikan Institusional akan mempengaruhi tindakan Perencanaan Pajak yang dilakukan perusahaan (Khan, Srinivasan, & Tan, 2017) (Putra, Yuliusman, & Wisra, 2020) (Sonia & Suparmun, 2018) (Pattiasina, Tammubua, Numberi, Patiran, & Temalagi, 2019) (Salawu & Adedeji, 2017). Namun, hasil penelitian ini bertolak belakang dengan penelitian lainnya yang menyatakan bahwa Kepemilikan Institusional tidak mempengaruhi tindakan Perencanaan Pajak yang dilakukan perusahaan (Putri, Setiawan, Faishol, Roza, & Yudha, 2018) (Waluyo, 2017) (Salaudeen & Ejeh, 2018) (Jamei, 2017) (Chytis, Taslos, & Filos, 2020).…”

Section: Pembahasan Dampak Kepemilikan Institusional Terhadap Perencanaan Pajakunclassified

“…Hasil penelitian menunjukkan bahwa variabel Dewan Direksi tidak mempengaruhi Perencanaan Pajak. Hasil penelitian ini mendukung hasil penelitian terdahulu yang menyatakan bahwa Dewan Direksi tidak mempengaruhi terhadap Perencanaan Pajak (Jamei, 2017) (Chytis, Taslos, & Filos, 2020). Namun, penelitian ini berbeda dengan hasil penelitian lainnya yang menyatakan bahwa Dewan Direksi mempengaruhi tindakan perusahaan melakukan Perencanaan Pajak (Prasetyo, Masitoh, & Wijayanti, 2018) (Salawu & Adedeji, 2017).…”

Section: Dampak Dewan Direksi Terhadap Perencanaan Pajakunclassified

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Determinan Perencanaan Pajak Perusahaan Pertambangan di Indonesia

Agustina¹,

Mie²,

Firza³

2022

Owner

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This research aims to determine the effect of corporate governance as measured by institutional ownership, the proportion of independent commissioners, audit committee, and board of director also solvability, profitability, company size, growth opportunity, and capital intensity ratio on tax planning. The population in this research were all mining companies listed on Indonesia stock exchange for the 2015-2018 with the sampling technique used was purposive sampling. This type of research was causal associative, with data analysis method, namely confirmatory factor analysis and then continued with multiple regression analysis. The result of the factor test indicate that the audit committee is not a determinant of tax planning. Based on the results of regression analysis shows that simultaneously, institutional ownership, the proportion of independent commissioners, board of directors, solvency, profitability, company size, growth opportunity, and capital intensity ratio have an effect on tax planning. While partially, the results of the study indicate that institutional ownership, profitability, growth opportunity, and capital intensity ratio can be determinants that affect corporate tax planning. Meanwhile, the proportion of independent commissioners, board of directors, solvency, and company size partially not influence the company to do the tax planning. From results of this research, the government is expected will pay more attention to the grey area that can be used by companies as a gap to reduce tax payments which results in reduced state revenues.

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The effect of corporate governance mechanisms on tax planning during financial crisis: an empirical study of companies listed on the Athens stock exchange

Cited by 29 publications

References 27 publications

The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan

The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan

A Comparison of Corporate Governance and Tax Avoidance of UK and Japanese Firms

Determinan Perencanaan Pajak Perusahaan Pertambangan di Indonesia

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