The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis

This paper examines the impact of board of director oversight characteristics on corporate tax aggressiveness. Based on a 812 firm year dataset of 203 publicly-listed Australian firms over the 2006–2009 period, our regression results show that if a firm has established an effective risk management s...

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Main Authors: Richardson, G., Taylor, Grantley, Lanis, R.
Format: Journal Article
Published: Elsevier 2013
Online Access:http://hdl.handle.net/20.500.11937/18179
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author Richardson, G.
Taylor, Grantley
Lanis, R.
author_facet Richardson, G.
Taylor, Grantley
Lanis, R.
author_sort Richardson, G.
building Curtin Institutional Repository
collection Online Access
description This paper examines the impact of board of director oversight characteristics on corporate tax aggressiveness. Based on a 812 firm year dataset of 203 publicly-listed Australian firms over the 2006–2009 period, our regression results show that if a firm has established an effective risk management system and internal controls, engages a big-4 auditor, its external auditor’s services involve proportionally fewer non-audit services than audit services and the more independent is its internal audit committee, it is less likely to be tax aggressive. Our additional regression results also indicate that the interaction effect between board of director composition (i.e., a higher ratio of independent directors on the board) and the establishment of an effective risk management system and internal controls jointly reduce tax aggressiveness.
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spelling curtin-20.500.11937-181792019-02-19T05:35:12Z The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis Richardson, G. Taylor, Grantley Lanis, R. This paper examines the impact of board of director oversight characteristics on corporate tax aggressiveness. Based on a 812 firm year dataset of 203 publicly-listed Australian firms over the 2006–2009 period, our regression results show that if a firm has established an effective risk management system and internal controls, engages a big-4 auditor, its external auditor’s services involve proportionally fewer non-audit services than audit services and the more independent is its internal audit committee, it is less likely to be tax aggressive. Our additional regression results also indicate that the interaction effect between board of director composition (i.e., a higher ratio of independent directors on the board) and the establishment of an effective risk management system and internal controls jointly reduce tax aggressiveness. 2013 Journal Article http://hdl.handle.net/20.500.11937/18179 10.1016/j.jaccpubpol.2013.02.004 Elsevier fulltext
spellingShingle Richardson, G.
Taylor, Grantley
Lanis, R.
The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis
title The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis
title_full The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis
title_fullStr The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis
title_full_unstemmed The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis
title_short The impact of board director oversight characteristics on corporate tax agressiveness: An empirical analysis
title_sort impact of board director oversight characteristics on corporate tax agressiveness: an empirical analysis
url http://hdl.handle.net/20.500.11937/18179