Aggressive tax planning strategies or Tax aggressiveness (TA) represent a common feature within the corporate environment, as taxes are a critical factor in the decision-making process of a company. The adoption of these strategies entails some benefits for companies through the availability of more resources to invest. The TA strategy involves two main consequences for companies: the first one is a compliance cost as consequence of the relationship with the tax authority (Scholes et al., 2005); the second one is a reputational cost due to the increase of social and political pressure on corporate decisions (Hanlon et al., 2009; Ayers et al.,2008). The work shows how the characteristics of the governance mechanisms are relevant in the study of the tax planning strategy of a firm.
THE EFFECTS OF THE BOARD COMPOSITION ON TAX PLANNING STRATEGIES: AN EMPIRICAL ANALYSIS ON ITALIAN LISTED FIRMS
Antonio Iazzi;Andrea Vacca;Amedeo Maizza
2019-01-01
Abstract
Aggressive tax planning strategies or Tax aggressiveness (TA) represent a common feature within the corporate environment, as taxes are a critical factor in the decision-making process of a company. The adoption of these strategies entails some benefits for companies through the availability of more resources to invest. The TA strategy involves two main consequences for companies: the first one is a compliance cost as consequence of the relationship with the tax authority (Scholes et al., 2005); the second one is a reputational cost due to the increase of social and political pressure on corporate decisions (Hanlon et al., 2009; Ayers et al.,2008). The work shows how the characteristics of the governance mechanisms are relevant in the study of the tax planning strategy of a firm.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
