Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis

We examine financial distress and tax aggressiveness spanning the global financial crisis (GFC) of 2008 and the impact of the interaction between board independence and firm-specific financial distress on tax aggressiveness. Our regression results show that both financial distress and the GFC are po...

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Main Authors: Richardson, G., Lanis, R., Taylor, Grantley
Format: Journal Article
Published: Elsevier 2015
Online Access:http://hdl.handle.net/20.500.11937/2819
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author Richardson, G.
Lanis, R.
Taylor, Grantley
author_facet Richardson, G.
Lanis, R.
Taylor, Grantley
author_sort Richardson, G.
building Curtin Institutional Repository
collection Online Access
description We examine financial distress and tax aggressiveness spanning the global financial crisis (GFC) of 2008 and the impact of the interaction between board independence and firm-specific financial distress on tax aggressiveness. Our regression results show that both financial distress and the GFC are positively associated with tax aggressiveness. More importantly, we find that the positive association between financial distress and tax aggressiveness is magnified by the GFC. We also observe that the interaction between board independence and financial distress is positively associated with tax aggressiveness. Our results are robust to multiple measures of financial distress and tax aggressiveness.
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institution Curtin University Malaysia
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publishDate 2015
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spelling curtin-20.500.11937-28192017-09-13T14:31:38Z Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis Richardson, G. Lanis, R. Taylor, Grantley We examine financial distress and tax aggressiveness spanning the global financial crisis (GFC) of 2008 and the impact of the interaction between board independence and firm-specific financial distress on tax aggressiveness. Our regression results show that both financial distress and the GFC are positively associated with tax aggressiveness. More importantly, we find that the positive association between financial distress and tax aggressiveness is magnified by the GFC. We also observe that the interaction between board independence and financial distress is positively associated with tax aggressiveness. Our results are robust to multiple measures of financial distress and tax aggressiveness. 2015 Journal Article http://hdl.handle.net/20.500.11937/2819 10.1016/j.jbankfin.2014.11.013 Elsevier restricted
spellingShingle Richardson, G.
Lanis, R.
Taylor, Grantley
Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis
title Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis
title_full Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis
title_fullStr Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis
title_full_unstemmed Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis
title_short Financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: An empirical analysis
title_sort financial distress, outside directors and corporate tax aggressiveness spanning the global financial crisis: an empirical analysis
url http://hdl.handle.net/20.500.11937/2819