The Effects of Executives on Corporate Tax Avoidance

Dyreng, Scott D.; Hanlon, Michelle; Maydew, Edward L.

doi:10.2308/accr.2010.85.4.1163

Cited by 1,197 publications

(657 citation statements)

References 30 publications

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“…Therefore, it may be concluded that remuneration negatively influences the tax management detected by means of the variable BTD. This finding is consistent with the papers by Desai and Dharmapala (2006), Minnick and Noga (2010), Dyreng et al (2010), Rego and Wilson (2010), and Armstrong et al (2011), who identified a significant relationship between remuneration and BTD. Finally, H 6 and H 7 may be proven by the results, demonstrating that remuneration and the previous tax management influence the tax management detected through ETR, CashETR, and BTD, regardless of the fact that the company is classified at specific levels on the BM&FBOVESPA or at the traditional Market, as the control variable (Gc) was significant only in the model in Table 6.…”

Section: Panel Data Model For the Variable Btdsupporting

confidence: 82%

“…Besides, the results shown herein are consistent with the papers by Minnick and Noga (2010), Dyreng et al (2010), and Rego and Wilson (2010), who identified a significant relationship between remuneration and CashETR. In this model, no significant relationship was noticed between corporate governance and the dependent variable.…”

Section: Panel Data Model For the Variable Cashetrsupporting

confidence: 82%

“…In this regard, the studies sought to confirm whether there is a relationship between variable remuneration and tax management, and in many of them there was a significant negative relationship between remuneration and proxies identifying tax management, such as ETR, CashETR, and BTD (Armstrong et al, 2011;Desai & Dharmapala, 2006;Dyreng et al, 2010;Minnick & Noga, 2010;Phillips, 2003;Rego & Wilson, 2010).…”

Section: Corporate Governance Agency Problem and Player Remunerationmentioning

confidence: 99%

“…However, they did not identify the same association with corporate governance characteristics, such as independence of the Board of Directors and segregation between Chairman and CEO. Dyreng et al (2010) analyzed 908 business executives between the years 1992 and 2006, in order to verify whether these managers promoted an incremental effect on tax management in their companies, since such management could not be explained by the company characteristics. They noticed that executives play a significant role in determining companies' tax avoidance level.…”

Section: Aspects Related To Tax Managementmentioning

confidence: 99%

“…Anyway, several studies (Desai & Dharmapala, 2006;Frank, Lynch & Rego, 2009;Rego & Wilson, 2010;Dyreng, Hanlon & Maydew, 2010;Armstrong et al, 2011) have shown a strong link between the executive board remuneration and tax management, showing a negative relationship between increased executive board remuneration and the effective tax rates on companies' earnings.…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance Characteristics as a Stimulus to Tax Management

Gomes

2016

Rev. contab. finanç.

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This article aimed to investigate whether corporate governance uses tax management to increase companies' performance. The objective was checking whether corporate governance characteristics, such as remuneration paid to the executive board, segregation between Chairman and CEO, and the independence and composition of the Board of Directors, influence tax management in Brazilian companies. At the same time, it aimed to identify whether the preceding tax management is reflected on the subsequent tax management. To do this, a sample of 355 Brazilian companies listed on the BM&FBOVESPA between 2008 and 2014 was used, in order to find out whether their corporate governance characteristics influenced tax management, something identified by calculating ETR, CashETR, and BTD. As a result, it was found (i) that the remuneration paid to executives may be regarded as a characteristic influencing tax management in Brazilian firms, and (ii) that the preceding tax management influences the future tax management. In addition, it was found that Brazilian companies do not rule out tax management benefits, since the average effective rate in the sample under analysis was 25%, and it is statistically lower than the nominal rate of taxes on earnings in Brazil, which is 34%.

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Section: Panel Data Model For the Variable Btdsupporting

confidence: 82%

Section: Panel Data Model For the Variable Cashetrsupporting

confidence: 82%

Section: Corporate Governance Agency Problem and Player Remunerationmentioning

confidence: 99%

Section: Aspects Related To Tax Managementmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate Governance Characteristics as a Stimulus to Tax Management

Gomes

2016

Rev. contab. finanç.

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Tax amnesty, corporate social responsibility disclosure, and organizational inertia

Adhariani,

Hajawiyah,

Rini

2023

Bus Strat Dev

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This study investigates the empirical association between corporate social responsibility (CSR) disclosure and tax compliance when there is a tax amnesty policy provided by the government. Utilizing the difference in difference method, we studied the impact of the tax amnesty program on tax compliance and CSR disclosure of companies in the mining industry in Indonesia context for the research period 2014–2019. Consistent with inertia theory, we observe the organizational inertia phenomena as the findings indicate the insignificant impact of the tax amnesty program on tax compliance and the marginally significant negative impact on CSR disclosure. This might come from corporate attributes that cause the inertia such as routines and procedures as well as the fixed mindset of the companies' decision‐makers on the cost and benefit of becoming corporate citizens. The inertia might also reflect the weaknesses in the management control system, especially in the belief and boundary control system. This research discusses the impact of tax amnesty on CSR disclosure which has been rarely investigated in previous studies. This study also extends the inertia theory on the taxation context and provides policy implications on tax amnesty.

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The impact of Environmental Protection Agency penalties on financial performance

2018

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This study examines the impact of penalties assessed to publicly traded firms by the U.S. Environmental Protection Agency (EPA). Specifically, we look at whether there is an impact on earnings for firms that were fined by the EPA. There are two competing predictions regarding the impact of environmental penalties on earnings. Either there is no negative impact because firms allocate allowances for regulatory breaches or there is a negative impact because investors and stockholders have a preference to invest in efficient firms. This study contributes to the extant literature examining improvements in the business decision making related to corporate environmental management.

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The Effects of Executives on Corporate Tax Avoidance

Cited by 1,197 publications

References 30 publications

Corporate Governance Characteristics as a Stimulus to Tax Management

Corporate Governance Characteristics as a Stimulus to Tax Management

Tax amnesty, corporate social responsibility disclosure, and organizational inertia

The impact of Environmental Protection Agency penalties on financial performance

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