Women on the board of directors and corporate tax aggressiveness in Australia

2016 ◽  
Vol 29 (3) ◽  
pp. 313-331 ◽  
Author(s):  
Grant Richardson ◽  
Grantley Taylor ◽  
Roman Lanis
Keyword(s):  
Board Of Directors ◽  
Selection Bias ◽  
Tax Avoidance ◽  
Multivariate Regression Analysis ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Self Selection ◽  
The Board Of Directors ◽  
The Impact

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

Demographic characteristics of the board of directors’ structure and tax avoidance

2019 ◽  
Vol 46 (2) ◽  
pp. 199-212 ◽  
Author(s):  
Mohammadreza Hoseini ◽  
Mehdi Safari Gerayli ◽  
Hasan Valiyan
Keyword(s):  
Board Of Directors ◽  
Capital Market ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Demographic Characteristics ◽  
Corporate Tax ◽  
Content Type ◽  
The Board Of Directors ◽  
Female Presence ◽  
Different Characteristics

PurposeThe structure of corporate governance, as one of the important elements to be considered based on the different characteristics than other companies, such as women, expertise, tenure and management is different. But two measures for the presence of women in the board of directors and the size of director’s board are considered as corporate content characteristics that can affect corporate tax strategies in avoiding tax or taxes timely pay off. The purpose of this paper is to understand the demographic characteristics of the board of directors structure on the board and tax avoidance in Tehran Stock Exchange (TSE).Design/methodology/approachSample includes the 505 firm-year observations from companies listed on the TSE during the years 2012–2016 and research hypothesis was tested using multivariate regression model based on panel data.FindingsThe results indicate that female presence on the board of directors reduces the corporate tax avoidance. Additionally, firms with a larger size of board of directors are associated with more tax avoidance.Originality/valueThe current study is almost the first study which has been conducted in Iran, so the findings of the study not only extend the extant theoretical literature concerning the tax avoidance in developing countries including emerging capital market of Iran, but also help investors, capital market regulators and accounting standard setters to make informed decisions.

The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan

2020 ◽  
Vol 18 (4) ◽  
pp. 795-812
Author(s):  
Amneh Alkurdi ◽  
Ghassan H. Mardini
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Policy Implications ◽  
Content Type ◽  
Amman Stock Exchange ◽  
Avoidance Strategies ◽  
The Board Of Directors ◽  
The Impact

Purpose Adopting agency theory, the purpose of this study is to explore the impact of ownership structure and board of directors’ composition on the extent of tax avoidance strategies. Design/methodology/approach The sample included all of the Jordanian first market companies listed on the Amman Stock Exchange from 2012 to 2017, comprising 348 observations. Findings The main finding of the paper is that tax avoidance is negatively related to managerial and institution ownership structures, which reduces the usage of tax avoidance strategies. Foreign ownership, however, has a positive relation that increases the likelihood of adopting tax avoidance strategies. Practical implications This study has policy implications for policymakers in relation to designing future tax systems to reduce the possibility of engaging in tax avoidance practices. Originality/value To the best of the authors’ knowledge, this study is the first of its kind that investigates the effects of the managerial, foreign and institutional ownership classes and board composition on tax avoidance for Jordanian listed companies.

scholarly journals The Impact of Corporate Governance Characteristics on the of Financial Distress

2016 ◽  
Vol 3 (2) ◽  
pp. 162
Author(s):  
Mahdi Filsaraei ◽  
Reza Jarrahi Moghaddam
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Distress ◽  
Financial Statements ◽  
Multivariate Regression Analysis ◽  
Company Stock ◽  
Governance Indicators ◽  
The Board Of Directors ◽  
Qualified Audit Opinion ◽  
The Impact

Given the importance of corporate governance for increasing the monitoring of company operations, i.e., reducing information asymmetry and increasing control over operations, in this study, we investigate some indicators of corporate governance and financial distress as one of the most important criteria in the decisions of the users of financial statements. Corporate governance Indicators that have been mentioned in this study, including the independence of the board of directors (the ratio of non-executive members), institutional investors and duality of CEO and Chairman of the Board of Directors. This study is applied research and the required information is gathered from financial statements of listed companies on the TSE. Using a sample of 82 company stock during the period 2010-2014 and multivariate regression analysis, the results of the analysis of information gathered indicates that institutional ownership reduces the financial distress. However, there was no significant relationship between board independence (proportion of outside board members) and the duality of CEO and Chairman of the Board with the financial distress. The results also indicate that financial leverage and a qualified audit opinion increases financial distress and firm size and management performance reduces it.

The impact of ownership structure on corporate tax avoidance with corporate social responsibility as mediating variable

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anissa Dakhli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Corporate Tax ◽  
Data Set ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the direct and indirect relationship between institutional ownership and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable. Design/methodology/approach This study uses panel data set of 200 French firms listed during the 2007–2018 period. The direct and indirect effects between managerial ownership and tax avoidance were tested by using structural equation model analysis. Findings The results indicate that institutional ownership negatively affects tax avoidance. The greater the proportion of the institutional ownership, the lower the likelihood of tax avoidance usage. From the result of the Sobel test, this study indicated that CSR partially mediates the effect of institutional ownership on corporate tax avoidance. Practical implications The findings have some policy and practical implications that may help regulators in improving the quality of transactions and in achieving more efficient market supervision. They recommend to the government to add regulations and restrictions to the structure of corporate ownership to control corporate tax avoidance in French companies. Originality/value This study extends the existing literature by examining both the direct and indirect effect of institutional ownership on corporate tax avoidance in French companies by including CSR as a mediating variable.

Financial soundness of Islamic banks: does the structure of the board of directors matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil ◽  
Imen Ben Slimene
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
Additional Hypothesis ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact

Purpose The purpose of this paper is to examine the Board of Directors’ characteristics and their impact on the financial soundness of Islamic banks. Design/methodology/approach Regression analysis is applied to test the impact of the Board of Directors’ characteristics on the financial soundness of Islamic banks, using a panel data set of 67 Islamic banks covering 20 countries from 2005 to 2018. The Z-score indicator is used to evaluate the Islamic banks’ soundness. To check the robustness of the results, this paper uses other dependent variables (CAMEL) than the Z-score. Findings The main results show that the presence of an independent non-executive director negatively impacts the financial soundness of Islamic banks, while the chief executive officer duality practice has a positive effect on it. Other characteristics of the Board of Directors do not significantly impact the financial soundness of Islamic banks (foreign director, institutional director, chairman with a Shari’ah degree, interlocked chairman and the Board of Directors’ size). Practical implications This study aims to fill the gaps in the literature that discuss the Board of Directors’ role in corporate governance and its impact on the financial soundness of Islamic banks. In other words, it shows the role played by the Board of Directors and improves the knowledge of the corporate governance-financial soundness relationship. Plus, managers, investors and regulators may gain evocative insights, particularly those looking to improve their Islamic banks’ soundness by restructuring their boards’ composition. Originality/value This study sheds new light on the literature on Islamic banking by clarifying the relationship between the Board of Directors and the financial soundness of Islamic banks. Contrary to previous research, this paper uses an additional hypothesis stating that a chairman with a Shari’ah degree (Fiqh Muamalt) has a positive impact on the financial soundness of Islamic banks.

Corporate dispersion and tax avoidance

2019 ◽  
Vol 13 (3) ◽  
pp. 706-732 ◽  
Author(s):  
Kun Su ◽  
Bin Li ◽  
Chen Ma
Keyword(s):  
Internal Control ◽  
Chief Executive Officers ◽  
Tax Avoidance ◽  
Chief Executive ◽  
Corporate Tax ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Executive Officers ◽  
The Impact

Purpose The purpose of this paper is to investigate the effects of corporate dispersion on tax avoidance from geographical and institutional dispersion perspectives by using evidence from China. Design/methodology/approach Using a panel data of Chinese listed firms during 2003-2015, this paper estimates with correlation analysis and multiple regression analysis. Findings Both geographical and institutional dispersion are negatively associated with the degree of corporate tax avoidance. Furthermore, corporate governance mechanisms and female chief executive officers can mitigate the negative relation between corporate dispersion and tax avoidance. The results also indicate that ineffective internal control is one of the channels through which corporate dispersion reduces tax avoidance. Originality/value This is the first paper about the impact of firm dispersion on the degree of tax avoidance, complementing the research content of diversification and corporate decision-making.

The impact of board characteristics on corporate investment decisions: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Board Of Directors ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Independent Directors ◽  
Investment Efficiency ◽  
Content Type ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
The Impact

Purpose The purpose of this study is to investigate the influence of board characteristics on firms’ investment decisions. Design Methodology Approach The study used data sourced from annual reports of firms listed on the Ghana Stock Exchange from 2014 to 2018. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by a regression analysis which forms the main data analysis. Findings The multiple regression analysis results indicated that the proportion of independent directors and financial experts on the board are negatively related to firm investment. These findings imply that independent directors and financial experts on the board can help firms reduce overinvestment and improve investment efficiency. Originality Value The extant literature shows that the board of directors are an effective mechanism to reduce agency problems in firm decisions and operating performance. However, there has been little research on the role of the board of directors in corporate investment policy.

Editorial

2014 ◽  
Vol 27 (1) ◽  
pp. 2-9
Author(s):  
Enrique Ogliastri
Keyword(s):  
Board Of Directors ◽  
Growth Strategies ◽  
Business Growth ◽  
Content Type ◽  
Mining Companies ◽  
The Board Of Directors ◽  
Growth Method ◽  
Herd Behaviour ◽  
The Impact ◽  
Los Grupos

Abstract In this issue we present seven articles originally from Canada, Chile, Colombia and Spain. The articles are of diverse subjects: first, some herd behaviour of the institutional investors in Chile; second, the impact of growth strategies and the company's resources on the business growth method; third, the effectiveness of the norms on the directives of the remuneration committee of the board of directors on the appropriate remuneration of the directors; fourth, the incidence of the behaviour of the stakeholders in the failure of the companies; fifth, barriers and options to increase the female workforce in mining companies; sixth, the factors that impulse the exporting behaviour of companies; and seventh, the impact of the design of a product in the buying intention of the consumers. All the articles, including those written in Spanish or Portuguese, are available in English. Resumen En este número presentamos siete artículos provenientes de Canadá, Chile, Colombia y España. Los artículos tienen temáticas muy diversas: 1) algunos comportamientos en manada de los inversores institucionales en Chile; 2) El impacto de la estrategia de crecimiento y de los recursos de la empresa en el método de crecimiento empresarial; 3) La efectividad de las normas sobre la Comisión de Remuneraciones de los Consejos directivos sobre la remuneración apropiada de los consejeros; 4) La incidencia del comportamiento de los grupos involucrados (stakeholders) en el fracaso de las empresas; 5) Barreras y opciones para incrementar la fuerza laboral femenina en las empresas mineras; 6) Los factores que impulsan el comportamiento exportador de las empresas; y 7) El impacto del diseño de un producto en la intención de compra de los consumidores. Todos los artículos, aún los escritos en español o portugués, están disponibles en inglés.

The impact of the board of directors and the Shariah board on the financial soundness of Islamic banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil
Keyword(s):  
Board Of Directors ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact ◽  
The Relationship

Purpose The purpose of the study is to examine the relationship between the board of directors (BODs) and the Shariah board (SB) and assess its impact on the financial soundness of Islamic banks (IBs). Design/methodology/approach The authors use a regression model to test the effects of the relationship between the BOD and the SB on the financial soundness of IBs by applying a panel data set of 61 IBs, covering 18 countries from 2008 to 2014. The dependent variable is the Z-score indicator. To test the robustness of the results, the authors use dependent variables other than the Z-score [A rating of Capital adequacy (C), Asset quality (A), Management (M), Earnings (E), Liquidity (L), and Sensitivity (S) (CAMELS)] for 2018. Findings The results show that meetings between directors and SB members significantly reduce the financial soundness of IBs. The relationship between the BOD and the SB increases conflicts of interest and agency costs. However, a representation of the SB at the BOD meetings and vice versa does not affect financial soundness. The Accounting and Auditing Organization for Islamic Financial Institutions and the Islamic Financial Services Board corporate governance standards do not require the presence of the SB representative at the BOD meetings or vice versa, which justifies the results. Practical implications This study attempts to fill gaps in the literature by investigating the impact of meetings between the SB and the BOD on the financial soundness of IBs across the world. The results suggest that the BOD’s frequent interference in the affairs of the SB can have adverse effects on IBs and should be avoided. Originality/value The authors depart from the previous literature by using three new characteristics that link the BOD to the SB. Methodologically, the authors use three new measures to evaluate this relationship and its effect on the financial soundness of IBs. This study is unique because it explores the comparative impacts of the presence of a SB representative at the BOD meetings and a director at the SB meetings and meetings between the two governing boards of IBs.

The effect of grassland transfer on herders' livestock production and grazing intensity in Inner Mongolia and Gansu, China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaolong Feng ◽  
Jianjun Tang ◽  
Huanguang Qiu
Keyword(s):  
Quantile Regression ◽  
Selection Bias ◽  
Inner Mongolia ◽  
Grazing Intensity ◽  
Livestock Production ◽  
Impact Mechanism ◽  
Content Type ◽  
Self Selection ◽  
Heterogeneous Effects ◽  
The Impact

Purpose The purpose of this study is to understand the impact mechanism of grassland transfer on herders' production behaviour in pastoral areas. The impact of grassland transfer on herders' livestock production and grazing intensity is quantified.Design/methodology/approach Using the survey data collected for 356 herder households from Inner Mongolia and Gansu, China, quantile regression is employed to assess the heterogeneous effects of grassland transfer on livestock production and grazing intensity. To correct the potential self-selection bias of grassland transfer, the propensity score matching technique is used.Findings Results show that labour, percentage of livestock income and livestock stock are the main factors affecting herders' choice to transfer grassland. The positive effect of grassland transfer on livestock numbers on behalf of those who rented additional grassland is statistically significant but declines with livestock numbers. The sustainability-enhancing effect of grassland transfer on grazing intensity is significant, and the effect becomes larger amongst herder households with higher grazing intensity. The analysis on the impact mechanism shows that grassland transfer significantly promotes the adoption of sustainable grazing modes, such as rotational and seasonal rest grazing, which in turn increases herders' livestock numbers and decreases grazing intensity.Originality/value Few studies have empirically analysed the influence of grassland transfer on livestock numbers and grazing intensity. This study fills this gap by employing a quantile regression to assess the heterogeneous effects of grassland transfer on livestock numbers and grazing intensity, while accounting for self-selection bias. In addition, the authors have examined the influencing mechanisms under which grassland transfer impacts on livestock numbers and grazing intensity.

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