The purpose of this paper is to analyze the moderating role of audit committee characteristics and audit quality on the relationship between tax aggressiveness and firm value. Our regression results show that the audit committee‘s size and gender diversity within it do not affect the relationship between tax aggressiveness and firm value. However, the data indicates that audit quality has a positive effect on the relationship between tax aggressiveness and firm value. Therefore, audit quality is an important governance mechanism that incentivizes firms to engage in tax planning strategies to maximize shareholder value, avoiding incurring conflicts of interests between shareholders and managers.
CORPORATE TAX BEHAVIORS AND FIRM VALUE: THE MODERATING ROLE OF AUDIT CHARACTERISTICS
Andrea Vacca
;Antonio Iazzi;Amedeo Maizza
2020-01-01
Abstract
The purpose of this paper is to analyze the moderating role of audit committee characteristics and audit quality on the relationship between tax aggressiveness and firm value. Our regression results show that the audit committee‘s size and gender diversity within it do not affect the relationship between tax aggressiveness and firm value. However, the data indicates that audit quality has a positive effect on the relationship between tax aggressiveness and firm value. Therefore, audit quality is an important governance mechanism that incentivizes firms to engage in tax planning strategies to maximize shareholder value, avoiding incurring conflicts of interests between shareholders and managers.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
