The role of regional institutional environment in the relationship between political participation and effective tax rates: evidence from Chinese listed private firms before the financial crisis

Li, Shuangyan; Guo, Feng; Cao, Guangjun

doi:10.1080/16081625.2016.1208575

Cited by 3 publications

(2 citation statements)

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“…These findings align with the study conducted by Adhikari et al (2006) which found that board member political participation and political connections have an effect on the low effective tax rates (ETRs) of companies in China as they are associated with reduced tax payments. Similarly, Li et al (2017) found that politically connected board members have a negative relationship with effective tax rates (increase in payment of correct tax) among companies in low-corruption regions and a statistically significant and positive relationship with effective tax rates (tax reduction). According to research by Sadiq et al (2019), businesses with political influence tend to pay significantly less in effective taxes compared to those without such clout.…”

Section: Discussion Of Findingsmentioning

confidence: 91%

“…Board political connection is a prevalent concern within companies particularly in developing nations (Poon, Yap, & Lee, 2013). Li, Feng, and Cao (2017) illustrated the influence of regional institutional environments on the interplay between political engagement and effective tax rates which may foster corruption. Their study revealed that political participation or connections exert a significant and positive impact on effective tax rates leading to increased tax compliance in regions with low corruption levels.…”

Section: Board Political Connections and Tax Planningmentioning

confidence: 99%

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Board characteristics and tax planning of quoted companies in Nigeria

Martins,

A.S.

2024

IJAEFA

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This study investigated board characteristics and tax planning among listed companies in Nigeria. It was an ex post facto type of research with a quantitative design covering a longitudinal time frame of five years (2017-2021). The data were analysed using panel regression (random and fixed effects). The outcomes of the study showed that board size and board gender diversity have no significant influence and exert a negative relationship with tax planning among firms while board independence and board political connection have significant influence and a positive relationship with the tax planning practices of the firms listed in Nigeria. It suggested that the government should ensure that boards of companies in Nigeria are well constituted with male and female members and those with politically connected members should be well monitored to prevent tax manipulations to the detriment of government tax revenue for expenditures. This study's potential to identify how board political relationships may promote tax aggression among firms. Thus, it will enable tax authorities to watch out for politically connected firms with regards tax reduction. Similarly, it will be a source of referencing material for researchers undertaking topics of this nature.

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Section: Discussion Of Findingsmentioning

confidence: 91%

Section: Board Political Connections and Tax Planningmentioning

confidence: 99%