Dual entrenchment and tax management: Classified boards and family firms

Moore, Jared A.; Suh, Sang-Hyun; Werner, Edward M.

doi:10.1016/j.jbusres.2017.06.007

Cited by 36 publications

(44 citation statements)

References 73 publications

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“…On the other hand, Moore et al. () find a positive association between board independence and tax avoidance using a sample of US firms, while Chan, Mo, and Zhou () and Minnick and Noga () find no association at all in Chinese and US settings, respectively. Chan et al.…”

Section: Background and Hypothesis Developmentmentioning

confidence: 97%

Tax avoidance, financial experts on the audit committee, and business strategy

Hsu

Moore

Neubaum

2018

Business Fin & Account

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We examine whether financial expert audit committee members tailor their approach to overseeing the corporate tax planning process according to the firm's business strategy. We predict and find that such directors encourage defender‐type firms (characterized partially by high risk aversion) to engage in more tax avoidance activities and prospector‐type firms (characterized partially by innovation and risk seeking) to scale back on tax avoidance, relative to the opposing strategy type. We also find that both accounting experts and non‐accounting financial experts on the audit committee contribute to our results to some extent, although the effects of non‐accounting financial experts present more consistently. Overall, our results suggest that financial experts on the audit committee tend to play more of an advising role for defenders and more of a monitoring role for prospectors, relative to one another.

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Section: Background and Hypothesis Developmentmentioning

confidence: 97%

Tax avoidance, financial experts on the audit committee, and business strategy

Hsu

Moore

Neubaum

2018

Business Fin & Account

Self Cite

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“…We also include a set of variables in the analyses to account for possible alternative explanations according to previous studies (Steijvers et al, 2014;Laguir et al, 2015;Lin et al, 2017;Moore et al, 2017).…”

Section: Control Variablesmentioning

confidence: 99%

“…It is generally known that one of the most important or significant cost in firms is taxes; being object of a stream of previous literature (e.g., Moore, Shu, & Werner, 2017). Taxes are directly correlated with profitability and shareholders value.…”

mentioning

confidence: 99%

“…According to the existence of mixed results on the relationship between CSR and tax avoidance (Laguir et al, 2015;Landry et al, 2013;Lin et al, 2017) and in particular, within a family firm's framework (Chen et al, 2010;Gaaya, Lakhal, & Lakhal, 2017;Moore et al, 2017;Steijvers & Niskanen, 2014), our paper focuses on the following.…”

mentioning

confidence: 99%

“…As final contributions to prior literature, this study adopts an international approach rather than a single-country or region approach (Cascino, Pugliese, Mussolino, & Sansone, 2010;Gaaya et al, 2017;Lin et al, 2017;Moore et al, 2017). Whereas previous studies about the topics of CSR, family firms, and tax avoidance developed a crosssectional analysis, this study adopts a panel data approach that allows multiple comparison among countries and years.…”

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confidence: 99%

See 2 more Smart Citations

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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CEO tenure and environmental fraud for listed family firms

Wang,

Zhang,

Chang

et al. 2023

Bus Strat Env

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This paper examines CEO tenure's impact on the environmental fraud committed by listed Chinese family firms from the year 2012 to 2019. Using a bivariate probit model, we provide robust evidence that CEO tenure is positively related to the environmental fraud commission, indicating that longer‐serving CEOs are more likely to violate environmental regulations and to commit fraud in the family firms. Besides, when there is a higher proportion of independent directors, CEO tenure is negatively related to the environmental fraud commission but positively related to fraud detection. Moreover, when there is a greater proportion of family members in senior positions, CEOs with longer tenure are more likely to commit environmental fraud. Our additional analysis finds that compared to non‐family professional CEOs, family CEOs are more likely to commit environmental fraud. Overall, our results call for the introduction of CEO tenure limits and the increased recruitment of independent directors in family firms.

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Dual entrenchment and tax management: Classified boards and family firms

Cited by 36 publications

References 73 publications

Tax avoidance, financial experts on the audit committee, and business strategy

Tax avoidance, financial experts on the audit committee, and business strategy

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

CEO tenure and environmental fraud for listed family firms

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