Corruption prevention practices and tax avoidance: The moderating effect of corporate board characteristics

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2024-03-29 DOI:10.1016/j.intaccaudtax.2024.100615

Ahmed A. Sarhan , Mohamed H. Elmagrhi , Emad M. Elkhashen

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Abstract

This paper examines the impact of corruption prevention practices on tax avoidance from a neo-institutional theoretical perspective. Our study also contributes to the existing corruption and tax literature by considering the moderating effect of corporate board characteristics on the association between corruption prevention practices and tax avoidance. Based on a sample of FTSE 350 United Kingdom (UK) listed firms, our findings illustrate that a firm’s commitment to good anti-corruption practices is linked with lower tax avoidance. Furthermore, corporate board characteristics complement anti-corruption practices in minimizing corporate tax avoidance. Our findings provide useful evidence to governments, regulators, and other stakeholders who aim to determine best business practices that could help in reducing the risk of corporate tax avoidance. In general, our findings are robust to alternative measures of tax avoidance and different types of multivariate regression methods, namely ordinary least squares, two-stage least squares and Tobit regression techniques.

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预防腐败的做法与避税：公司董事会特征的调节作用

本文从新制度理论的角度研究了预防腐败措施对避税的影响。我们的研究还考虑了公司董事会特征对预防腐败行为与避税之间关联的调节作用，从而为现有的腐败与税收文献做出了贡献。基于富时 350 英国（UK）上市企业的样本，我们的研究结果表明，企业致力于良好的反腐败实践与较低的避税行为有关。此外，公司董事会的特点也与反腐措施相辅相成，能最大限度地减少公司的避税行为。我们的研究结果为政府、监管机构和其他利益相关者提供了有用的证据，他们旨在确定有助于降低企业避税风险的最佳商业实践。一般来说，我们的研究结果对其他避税措施和不同类型的多元回归方法（即普通最小二乘法、两阶段最小二乘法和托比特回归技术）都是稳健的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.