Tax Aggressiveness and Auditor Resignation

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

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Financial Accounting Effects of Tax Aggressiveness: Contracting and Measurement

Contemporary Accounting Research ◽

10.1111/1911-3846.12068 ◽

2014 ◽

Vol 32 (1) ◽

pp. 223-242 ◽

Cited By ~ 15

Author(s):

Anja de Waegenaere ◽

Richard Sansing ◽

Jacco L. Wielhouwer

Keyword(s):

Financial Accounting ◽

Tax Aggressiveness

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The Determinants of Tax Aggressiveness in Family Firms: An Investigation of Italian Private Family Firms

Sustainability ◽

10.3390/su13147654 ◽

2021 ◽

Vol 13 (14) ◽

pp. 7654

Author(s):

Giulia Flamini ◽

Paola Vola ◽

Lucrezia Songini ◽

Luca Gnan

Keyword(s):

Family Involvement ◽

Family Business ◽

Family Firms ◽

Tax Planning ◽

Agency Conflicts ◽

Managerial Control ◽

Public Companies ◽

Tax Aggressiveness ◽

Research Findings ◽

Antecedents And Consequences

A recent stream of research has focused on tax aggressiveness, the downward management of taxable income through tax planning activities, and has analyzed its antecedents and consequences, mainly on public companies. Only very few studies, however, have been carried out in the context of private family business and have investigated whether some family firms are more tax aggressive than others, considering some specific features of family firms, such as their distinctive agency conflicts and socioemotional wealth. In this paper, we investigate the antecedents of tax aggressiveness in a sample of private Italian family firms. Our research findings show that tax aggressiveness is positively associated with ownership concentration, the presence of independent members in the board, and the adoption of reporting mechanisms. Instead, we found a negative relation between tax aggressiveness and the use of both strategic planning and a combination of managerial control systems (both planning and reporting mechanisms). We did not find any relation between family CEO and tax aggressiveness. In summary, overall, our findings show that family involvement in ownership, an independent board. and managerialization (the use of managerial mechanisms) are relevant antecedents of tax aggressiveness in private family businesses.

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