This paper analyses the relationship between corporate governance and tax avoidance. This study aims to highlight the wide-ranging effects of institutional investors, which channel into corporate policy. This analysis uses a regression discontinuity design (RDD) in a two-stage instrumental...

I provide strong evidence that powerful CEOs positively affect firm level tax avoidance. This result is robust to various alternative specifications, including endogeneity concern, firm-specific omitted variable bias, and controlling for various internal and external monitoring mechanisms. I...

Research question/issue: How does corporate governance affect corporate tax avoidance?Research findings/insights: Applying a stakeholder-oriented view, we find that various aspects of corporate governance institutions, such as management compensation, board characteristics, ownership structure,...

We examine how corporate governance affects the relationship between corporate tax avoidance and financial constraints. Conditional on having poor governance, tax avoidance is associated with greater financial constraints and a greater likelihood of financial distress. In firms with strong...

This study examines whether foreign institutional investors (FIIs) help explain variation in corporate tax avoidance and whether mechanisms such as tax morality, investment horizon, and corporate governance underlie the relation between FIIs and tax avoidance. We find robust evidence that FIIs...

I examine the effect of corporate governance on tax avoidance. Specifically, I use a regression discontinuity design to analyze the effect of governance-related shareholder proposals that pass or fail by a small percentage of votes. The passage of such proposals around the 50% threshold can be...

Much empirical evidence is consistent with properly incentivized executives engaging in more tax avoidance. However, other studies provide evidence consistent with tax avoidance facilitating managerial rent extraction. We address these mixed results by reexamining the negative relation between...

Taking advantage of the agency conflicts between controlling shareholders and minority shareholders and the weak corporate governance in a transition economy, we investigate the relationship between tax avoidance (proxied by effective tax rates) and tunneling (proxied by related-party lending)...