Government ownership, corporate governance and tax aggressiveness : evidence from China
Document Type
Journal article
Source Publication
Accounting and Finance
Publication Date
12-1-2013
Volume
53
Issue
4
First Page
1029
Last Page
1051
Publisher
Wiley-Blackwell Publishing Asia
Keywords
Corporate governance; Government ownership; Tax aggressiveness
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.
DOI
10.1111/acfi.12043
Print ISSN
08105391
E-ISSN
1467629X
Funding Information
This paper funded by City University of Hong Kong (Grant Number: 7200272).
Publisher Statement
Copyright © 2013 AFAANZ
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Chan, K. H., Mo, P. L. L., & Zhou, A. Y. (2013). Government ownership, corporate governance and tax aggressiveness: Evidence from China. Accounting & Finance, 53(4), 1029-1051. doi: 10.1111/acfi.12043