Taxation avoidance in overtrading firms and Boards' Independence

What is it about?

This paper investigates the liaison between taxation and corporate governance issues of listed multinational firms and the core characteristics of their boards’ functioning. The aim is to capture the determinant factors of board independency of listed firms as well as taxation, through a multiple regression analysis. For this reason, two models are examined, in order to get the impact of financial and non-financial factors in board independence and taxation, such as the number of directors and/or managers, the number of recorded shareholders and subsidiaries. In order to confirm results, taxation, as a compulsory expense, is examined so as to identify whether and in what extent impacts to board independency. Corporate governance indicators are also used as financial factors that relate directly with the viability and efficiency of a firm. The sample data is comprised of 918 listed European companies, over the period 2006–2015.

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Why is it important?

Country determinant, as a supportive element in this research, enhances understanding of the core topic, that of board independency and taxation.

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