Government ownership, corporate governance and tax aggressiveness: Evidence from China
Author(s)
Author(s)
Mo, P. L. L.
Zhou, A. Y.
Date Issued
2013
Publisher
Wiley
Journal
Accounting & Finance
Volume
53
Issue
4
Start page
1029
End page
1051
Abstract
This study investigates how government ownership and corporate governance influence a firm's tax aggressiveness. Using Chinese listed companies during 2003–2009, we find that compared with government-controlled firms, non-government-controlled firms pursue a more aggressive tax strategy. In particular, non-government-controlled firms with a higher percentage of the board shareholdings and with a CEO who also serves as the board chairman are more aggressive. For government-controlled firms, we find that board shareholding has an impact on tax aggressiveness and it does not differ between local and central government-controlled firms. However, local government-controlled firms in less developed regions where the implementation of corporate governance measures is generally less effective are more tax aggressive than those in other regions.
SFU Affiliated Publication
No
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