Corporate governance and tax avoidance: Evidence from governance reform

被引:0
|
作者
Kerr, Jon N. [1 ]
Price, Richard [2 ]
Roman, Francisco J. [3 ]
Romney, Miles A. [4 ]
机构
[1] Brigham Young Univ, Marriott Sch Business, Sch Accountancy, Provo, UT USA
[2] Univ Oklahoma, Price Coll Business, Sch Accounting, Norman, OK USA
[3] Univ Southern Calif, Leventhal Sch Accounting, Marshall Sch Business, Los Angeles, CA USA
[4] Florida State Univ, Coll Business, Tallahassee, FL 32306 USA
关键词
Corporate governance; Governance reform; Tax avoidance; Rent extraction; Tax reform; Family ownership; EARNINGS MANAGEMENT; INVESTOR PROTECTION; INTERNAL CONTROL; AUDIT COMMITTEE; VALUE RELEVANCE; BOARD; OWNERSHIP; PERFORMANCE; INCENTIVES; IMPACT;
D O I
10.1016/j.jaccpubpol.2024.107232
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We explore the association between corporate governance and tax avoidance in Mexico, a developing economy where the primary agency concern is between firm insiders and minority owners. The Mexican setting aligns with other non-U.S. settings and thus findings apply to a broad set of countries. We exploit governance reforms in Mexico and use a hand-collected governance index to show that improved corporate governance pushes tax avoidance toward a new equilibrium. In particular, we find evidence that Mexican firms with stronger governance engage in less tax avoidance and that our results are concentrated in family-owned firms and non- cross-listed firms, both of which have naturally weaker governance. Our findings suggest these governance reforms are effective in reducing tax avoidance, and we identify board independence and audit committees as mechanisms responsible for the decrease in tax avoidance.
引用
收藏
页数:21
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