Title

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

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

Publisher Statement

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Full-text Version

Publisher’s Version

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