Do corporate governance characteristics influence tax management?

Minnick, Kristina; Noga, Tracy

doi:10.1016/j.jcorpfin.2010.08.005

Cited by 417 publications

(538 citation statements)

References 54 publications

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“…Tax management, tax administration, tax planning, and tax avoidance are defined as a legal way of reducing expenses on taxes, when taxpayers identify opportunities in the laws to decrease companies' tax burden (Armstrong et al, 2011;Desai & Dharmapala, 2006;Formigoni et al, 2009;Minnick & Noga, 2010;Tang & Firth, 2010;Goncharov & Zimmermann, 2005).…”

Section: Aspects Related To Tax Managementmentioning

confidence: 99%

“…In the paper by Minnick and Noga (2010), addressing the role of corporate governance in tax management, the authors identified that variable remuneration of executive directors and the CEO have a strongly negative relationship with the tax management proxies ETR and CashETR. Every dollar added to the executives' wealth accounts for 1.94% less in ETR and 4.13% less in CashETR.…”

Section: Aspects Related To Tax Managementmentioning

confidence: 99%

“…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%

“…On the other hand, according to Minnick and Noga (2010), these studies are not concerned in checking how increased performance is obtained. Therefore, in order to verify which are the tools used by corporate governance to boost corporate performance, this research examines whether companies seek to increase their performance by reducing expenses on taxes on earnings (Brazilian income tax on legal entities -IRPJ and Brazilian social contribution on earnings -CSLL) and whether this is motivated by corporate governance practices adopted by companies.…”

Section: Introductionmentioning

confidence: 99%

“…It is believed that the increased performance of a company can be reached through tax management, understood as a legal way of reducing expenses on taxes, when taxpayers identify opportunities in laws to decrease companies' tax burden (Goncharov & Zimmermann, 2005;Tang, 2005;Desai & Dharmapala, 2006;Formigoni, Antunes, & Paulo, 2009;Minnick & Noga, 2010;Tang & Firth, 2010).…”

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: Aspects Related To Tax Managementmentioning

confidence: 99%

Section: Aspects Related To Tax Managementmentioning

confidence: 99%

Section: Corporate Governance Agency Problem and Player Remunerationmentioning

confidence: 99%

Section: Introductionmentioning

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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CEOs family on the boardroom and environmental, social, and governance disclosure: Exploring from economic crisis during COVID‐19

Ardianto,

Cahyono,

Sulaiman

2024

Bus Strat Dev

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This study examines the relationship between family‐run businesses and the quality of environmental, social, and governance (ESG) disclosure, with a specific focus on the influence of the COVID‐19 pandemic. Drawing on a sample of 559 firm‐year observations from publicly listed companies in ASEAN countries spanning from 2019 to 2022, this study measure ESG disclosure quality using the global reporting initiative guidelines for sustainability reports. Family‐run businesses are identified as those with family members serving on the board of directors. This study finding reveals that family‐run businesses exhibit higher ESG disclosure quality compared to companies without family representation on their boards. Furthermore, results show a significant positive impact of the COVID‐19 pandemic on the relationship between family‐run businesses and their ESG disclosure practices. The implications of this study are significant for various stakeholders, including owners, management, and regulators. This research contributes to the existing literature by offering empirical evidence on the relationship between family‐run businesses and ESG disclosure within the context of ASEAN countries, particularly amidst the COVID‐19 pandemic. By shedding light on the positive association between family involvement and ESG disclosure quality, this study provides valuable insights for practitioners and policymakers seeking to promote sustainable business practices in emerging markets.

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Does corporate social responsibility affect tax avoidance: Evidence from family firms

López-González

Martínez‐Ferrero

García‐Meca

2019

Corp Soc Responsibility Env

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The purpose of this paper is to shed light on the effect of corporate social responsibility performance on tax avoidance. It also examines whether family ownership affects tax avoidance practices by socially responsible performance. Based on an international sample of 6,442 firm-year observations from 2006 to 2014, we use several panel-data regression models. We find that social and environmental performance is negatively related with tax avoidance so that firms with a greater socially responsible performance show a lower tax-saving practices. However, we find that this negative relation is lower in family-owned firms, what suggests that despite the fact that family firms show a greater socially responsible behavior aimed to preserve their socioemotional endowments, family ownership is positively associated with tax avoidance practices.

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Do corporate governance characteristics influence tax management?

Cited by 417 publications

References 54 publications

Corporate Governance Characteristics as a Stimulus to Tax Management

Corporate Governance Characteristics as a Stimulus to Tax Management

CEOs family on the boardroom and environmental, social, and governance disclosure: Exploring from economic crisis during COVID‐19

Does corporate social responsibility affect tax avoidance: Evidence from family firms

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