This study uses merger and acquisitions (M&A) activities as a proxy for managers' aggressive style and shows that firms with a higher degree of acquisitions (dollar value of acquisitions and number of acquisition announced in a given year) are associated with more tax avoidance. This finding is...

The relationship between exorbitant chief executive officer (CEO) compensation and weak performance has been widely criticised as an abuse of managerial power and the intrusion of agency problems. This study examines whether the agency problem of free cash flow (FCF), identified by Jensen...