Government ownership, corporate governance and tax aggressiveness: evidence from China. (5th September 2013)

• Record Type: Journal Article
• Authors: Chan, K. Hung; Mo, Phyllis L. L.; Zhou, Amy Y.; Cahan, Steven
• Is Part Of: Accounting and finance. Volume 53:Number 4(2013:Dec.)
• Page Start: 1029
• Page End: 1051
• Publication Date: 2013-09-05
• Subjects: Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.12043
• Languages: English
• ISSNs: 0810-5391

Abstract

<abstract abstract-type="main" id="acfi12043-abs-0001"> <title>Abstract</title> <p>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.</p> </abstract>