Foundation University Journal of Business & Economics最新文献

筛选

英文中文

Corporate governance: Does it matter for tax rationalization? An empirical analysis of Pakistani firms 公司治理:对税收合理化有影响吗?对巴基斯坦企业的实证分析

Foundation University Journal of Business & Economics Pub Date : 2023-02-04 DOI: 10.33897/fujbe.v8i1.700

Muhammad Khurram Shabbir, Ishtiaq Ahmed, Aijaz Mustafa Hashmi

{"title":"Corporate governance: Does it matter for tax rationalization? An empirical analysis of Pakistani firms","authors":"Muhammad Khurram Shabbir, Ishtiaq Ahmed, Aijaz Mustafa Hashmi","doi":"10.33897/fujbe.v8i1.700","DOIUrl":"https://doi.org/10.33897/fujbe.v8i1.700","url":null,"abstract":"This paper examines how the corporate governance mechanisms impact the tax avoidance rationale of public limited firms of Pakistan. Tax avoidance has grown in significance in policymaking. This study extends the literature by providing a perspective from a developing country, Pakistan, particularly with a unique data set of its listed firms. The study adds interest by investigating mechanisms for corporate governance and how they influence tax avoidance. In the study sample size consists of 295 non-financial firms at the Pakistan stock exchange (PSX) from 2016 to 2020. The regression results indicated that the mechanisms for corporate governance do influence the tax avoidance of the publicly listed firms of Pakistan. Specifically, it was found that the number of the board’s independent directors and the external audit fee had a significant negative association with the effective tax rates. While the other variables, such as board political connections, board expertise, compensation, institutional shareholding and, big4 affiliation were insignificant. The control variables, liquidity, and firm age had a significant positive association with the annual effective tax rate, while leverage had a negative association. The firm size was insignificant. The findings of this study are informative for lawmakers and suggest the importance of corporate governance in reducing tax avoidance practices.","PeriodicalId":487714,"journal":{"name":"Foundation University Journal of Business & Economics","volume":"67 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135156849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0