TAX AGGRESSIVENESS AND FIRM VALUE: IS THE COMPOSITION OF CORPORATE BOARD DECISIVE?

This paper investigates the moderating role of corporate board on the relationship between the adoption of a tax strategy and firm value. Using a multivariate regression analysis, this study shows interesting empirical results. Firstly, this paper highlights that the independent directors and gender diversity within corporate board do not influence the relationship between tax aggressiveness and firm value. Conversely, the size of a corporate board has a negative impact on the relationship between the adoption of a tax strategy and firm value. Therefore, a corporate board made up of few directors represents a key corporate governance mechanism suitable to protect shareholder value from the risks associated with the adoption of a tax planning by a firm.